The Public Service Commission review found that Immigration New Zealand (INZ) did not adequately assess the risk and impact of changes to speed up processing times would have on visa abuse.

Ministry of Business, Innovation and Employment (MBIE) chief executive Carolyn Tremain acknowledged the seriousness of the issues raised in the review.

“Since 30 June last year, Immigration New Zealand has made a number of changes to tighten the settings, introducing more checks and, as a consequence, processing times have increased,” Tremain said.

However, the workers that RNZ spoke to started arriving in September 2023, with the latest landing in Auckland in January.

The case reflects the enormous challenges immigration authorities face in tightening the settings to prevent persistent exploitation in the hospitality and construction sectors, among others.

Exploitation allegations

RNZ has chosen not to disclose the name of the restaurant and its owner because the matter is currently under a potential investigation by INZ.

Jagmeet Singh, 19, arrived in September and began working at the restaurant

“The owner stopped paying us since December and, when we enquired, he threatened us with visa cancellation,” he said.

“A friend gave me a reference. I got in touch with the owner, and he gave me an AEWV visa.”

The workers claimed to have paid the restaurant owner significant sums to bank accounts registered in his name in India and New Zealand for visas and job placements.

Bank statements seen by RNZ showed sums totalling $30,000 deposited into these accounts, with a further $20,000 to $25,000 allegedly paid in cash.

Jasjeevan Singh, 22, arrived in October, alleging that he was only paid for the first few weeks.

“The last pay that I got was in January,” he said. “After that he [has] only paid me $300.”

The workers claim the owner made them work about 40 to 50 hours on average each week.

Tejbir Singh, 25, said he encountered a similar experience.

“Most of us have definitely worked more than 40-plus hours a week and never got paid even for the 30 hours,” he said.

“We were working from 11am to 12am with a three-hour break,” Tejbir said.

Tejbir arrived in December and began working at the restaurant in January, reportedly receiving $600 for five weeks of work.

Manjot Singh, 23, reportedly paid approximately $50,000 to the restaurant owner’s brother’s account in India before coming to New Zealand.

“I have statements of those transactions just like the others,” he said.

Harkirat Singh Sekhon, 32, a former chef in India, arrived in New Zealand in January but was told he couldn’t work because he hadn’t paid the processing fee in full.

“In India, he demanded 2.5 million rupees (approx $50,000), of which I transferred 238,000 rupees ($4700) in the owner’s account in India and 700,000 rupees ($13,713) in his associate’s account in India,” Sekhon said.

After this initial payment, Sekhon received his visa and arrived in New Zealand.

However, the owner allegedly asked Sekhon to pay the remainder of the money, about $30,000, if he wanted to work at the restaurant.

“It was hard for me to gather that much money, and my friends in NZ said it was too much and not a normal processing fee,” he said.

Sekhon claimed the owner kept threatening him for the remaining payment, even going so far as to threaten his family in India.

“He told me that he would send goons to my family back in India if I didn’t pay him soon.”

In mid-February, the workers contacted the police.

Police confirmed a complaint had been made, saying that they had made “initial enquiries into the incident and the matter has since been referred to MBIE.”

The group now survives with the help of the Sikh gurdwara in South Auckland.

“MBIE Immigration Investigation can confirm that a complaint has been received regarding the situation you have referred to,” MBIE Immigration Investigation national manager Jason Perry said.

“If appropriate, it will be allocated to a team for review and potential investigation,” he said.

INZ deputy chief operating officer Jeannie Melville said AEWV holders must be given a minimum of 30 hours work per week.

“A worker compelled to work excessive hours without a break is an example of migrant exploitation,” Melville said.

She said INZ conducted post-accreditation checks on accredited employers, aiming to check about 16 percent of them each year.

“It is a combination of random selection, as well as targeted checks on a sample of all accredited employer types in addition to checks on all franchisee and controlling third-party business models and any businesses that have been referred to us through a complaint or issue raised,” she said.

As of 16 February, INZ had approved 108,938 AEWV applications through 32,797 accredited employers. It conducted 2712 post-accreditation checks, with 596 more ongoing.

Meanwhile, MBIE has received 2107 complaints against accredited employers, leading to 174 active investigations. One hundred and forty-five employers have had their accreditation revoked, while 53 have been suspended.

Presently, 48 employers are being assessed for accreditation revocation, with none under consideration for suspension.