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How did a seven-year IT project leave New Zealand's visa system $90 million short? A guide for Tanzania

News · 2026-09-04 · 4 min read

Here is a timeline that employers and applicants in Dar es Salaam and Arusha can follow. It begins in 2018 and ends, for now, with a $90 million shortfall in Immigration New Zealand's (INZ) visa accounts and a fee review due before the end of 2026.

2018 to 2020: a start without analysis

The Biometric Capability Update (BCU) was meant to modernise how INZ handles biometric data. An independent review found it launched in 2018 without proper analysis, skipped due diligence in a 2020 rescope, put governance in place too late to matter and let problems escalate outside normal reporting lines. A separate investigation questioned whether costs were structured to stay beneath the $35 million threshold that would have forced the project in front of Cabinet.

March 2024: two verdicts nine days apart

A project update on March 19, 2024 described the programme as sound and robust and on track. Nine days later an independent quality assurance check concluded it likely could not be delivered. The project ran for seven years, to late 2025, and was scrapped with nothing usable to show.

2026: the bill arrives

The 2026 Budget booked a $31.2 million write-off. In July 2026 a further $6 million was disclosed, and the ministry could not promise it was the end. By early September 2026 known losses were near $40 million. INZ could owe the contractor as much as $12 million, on top of at least $4 million in claimed losses and potential penalties of up to $750,000 per month for a missed 2025 deadline. An inquiry is under way. The ministry's chief executive conceded to a parliamentary committee that the project had gone wrong, and ministers described it bluntly.

The replacement programme

Our Future Services, an eight-year, $336 million automation overhaul, is only about a year and a half old. A review found its business case overstated savings that depended on cutting 118 full-time roles and reducing overhead in IT, property and corporate services, even though such costs mostly do not shrink with headcount. The promised 30% productivity gain has not arrived: student visa processing runs only 7–20% above baseline. Treasury has rated the programme high risk.

Why users will notice

After the 2024 changes, INZ is funded almost entirely by those who use it. An August 2026 analysis put the 2024/25 mix at roughly 50% fees, 40% levies and 9% general taxation. About 91 cents of each dollar therefore comes from migrants and sponsoring employers. In 2024 skilled residence visa fees climbed from $4,290 to $6,450, and student visa fees doubled to $750. A Cabinet paper projected technology spending rising fourfold, from $13.3 million in 2024/25 to $58.2 million by 2027/28.

The ministry says that restoring surplus will take spending cuts and "revenue recovery measures", which in plain terms signals higher fees. We do not state a new figure, so rely on the official immigration website for current amounts.

What applicants and employers can do

Prepare early and keep paperwork current: NECTA and VETA certificates, identity documents and a police clearance from the Tanzania Police Force where it is requested. Show your work history clearly, and think about how you will present yourself: a short video from SelfIntroVideo can help employers see your communication. For wider reading, see why employers want a predictable system and what New Zealand's latest jobs data means. Current roles are on the jobs page.

Common mistakes when reading fee news

• Treating a review as a confirmed increase with a known amount.
• Forgetting that student and skilled fees have moved separately in the past.
• Skipping advice from a licensed immigration adviser or a lawfully exempt person.

Frequently asked questions

Why does the shortfall affect applicants?

INZ relies mainly on fees and levies from users.

When is the next fee review?

Before the end of 2026.

How much has the BCU lost so far?

Known losses were near $40 million by early September 2026, with more exposure possible.

What is Our Future Services?

An eight-year, $336 million automation programme replacing the failed system.

Where can I see current fees?

On the official immigration website.

Key takeaways

• A project that began in 2018 without analysis ended in a scrapped system.
• The visa accounts are $90 million short, and a review is due.
• Migrants and sponsoring employers fund about 91 cents of each dollar.
• Budget flexibly and verify fees officially.

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