An independent report has identified major flaws in MBIE's handling of a biometrics upgrade project, which wasted more than $30m.

The Public Service Commission will investigate officials' behaviour.

Minister Erica Stanford claims she was misled by officials who avoided Cabinet scrutiny.

An independent report has identified major flaws in MBIE's handling of a biometrics upgrade project, which wasted more than $30m.

But CEO Nic Blakeley said if issues were substantiated, employment action would follow.