Top ministry officials have been found in contempt of Parliament, with the Privileges Committee ruling they deliberately misled MPs about a bungled multimillion-dollar IT project.

The committee delivered its verdict on the extraordinary saga on Wednesday, but stopped short of recommending any further sanction for MBIE boss Nic Blakeley or former-Immigration NZ head Alison McDonald.

RNZ has approached the Ministry of Business, Innovation and Employment (MBIE) for comment.

During a select committee appearance in March this year, Blakely and McDonald were asked about the progress of a biometric upgrade programme but failed to disclose that that project had already been cancelled.

In its findings - published on Wednesday - the Privileges Committee said the officials would have known their incomplete answers would leave MPs with a false impression.

"The limited manner in which the ministry answered questions... was intentional," it said.

"We find that the ministry deliberately misled the Education and Workforce Committee and, in doing so, committed a contempt."

The report said it was "alarming" that neither of the senior public servants were aware they could have requested to provide evidence in private or secret.

"We wish to be very clear: officials appearing before select committees have an absolute obligation to tell the truth. Being truthful, responsible, and acting in good faith is the very essence of public service.

"To fail to meet these obligations is an insult to the entire public service."

The committee did not recommend any further punishment given the officials had already publicly apologised: "We intend that our findings will be of sufficient consequence on their own."

When giving evidence in July, Blakeley admitted the ministry got it wrong but denied a deliberate attempt to mislead.

He said officials believed they could not reveal the project's cancellation because MBIE was still negotiating a final payment with Japanese technology company NEC.

"We felt that we'd [addressed] the questions as best we could, given the limitations we were under," Blakeley told MPs.

Blakeley refused to answer questions from reporters after the hearing, saying he would wait for the committee's findings.

MBIE's conduct surrounding the failed project is also being investigated by former Solicitor-General Michael Heron, KC, at the behest of the Public Service Commission.

That investigation is looking into whether MBIE was fully upfront with ministers about the project over its full seven year timeline and whether or not they engaged in "creative accounting".