He appeared in court on Tuesday and has been remanded in custody to reappear in the Auckland District Court on December 5.
It is the second incident involving prisoners removing and swapping identity bracelets this year.
In August, an 18-year-old went on the run after allegedly bashing another prisoner, stealing his identity bracelet and using it to appear in the Manukau District Court and get bail.
Byson Kanivatoa was to appear in court on 11 counts of burglary, one of assault and two of breaching court conditions.
However, while in police custody he allegedly assaulted another prisoner and put the man's bracelet on his own wrist.
Police spokesman Jon Neilson confirmed a review had been ordered since the incident this month.
Auckland City police spokeswoman Noreen Hegarty said the incident involving Hay was the first of its kind in the district.
"Aside from one incident in the last week, Auckland City District has not had any issues with prisoners swapping ID bracelets. In the incident I refer to, the swap was detected by police well before the prisoner went to court and he faced an additional charge of attempting to pervert the course of justice," she said.
Auckland City District has had the prisoner ID wrist bands since July this year, with only the one alleged breach.
The Counties Manukau District has used the system for considerably longer.