Wed. Nov 6th, 2024
alert-–-why-are-they-still-getting-whitehall-contracts?-mps-demand-fujitsu-–-the-it-firm-at-the-centre-of-the-post-office-scandal-–-is-blocked-from-new-deals-as-it’s-shown-they’ve-been-given-200-worth-6.7bn-over-a-decade-–-including-the-new-emergency-alert-systemAlert – Why are they still getting Whitehall contracts? MPs demand Fujitsu – the IT firm at the centre of the Post Office scandal – is blocked from new deals as it’s shown they’ve been given 200 worth £6.7bn over a decade – including the new emergency alert system

The Government is facing calls to halt Fujitsu – the IT company at the centre of the Post Office scandal – from winning any new Whitehall contracts.

Amid growing public fury at the wrongful prosecution of subpostmasters for alleged fraud, MPs and peers are demanding the Japanese-based firm be suspended from getting fresh deals.

Fujitsu created the faulty accounting software called Horizon that made it appear as though money was missing from Post Office branches.

More than 700 branch managers were handed criminal convictions in what has been described as the most widespread miscarriage of justice in British history.

A public inquiry into the scandal is ongoing and anger at the treatment of subpostmasters has grown after an ITV drama returned the issue to the spotlight.

This has also seen a fresh focus on how Fujitsu, despite their role in the scandal, has won nearly 200 public contracts with a value of about £6.7billion over the past decade.

According to data compiled by Tussell, the Government procurement analysts, Fujitsu’s deals include providing IT services to schools in Northern Ireland (worth £485million) and infrastructure used by HM Revenue & Customs.

The Government is facing calls to halt Fujitsu - the IT company at the centre of the Post Office scandal - from winning any new Whitehall contracts

The Government is facing calls to halt Fujitsu – the IT company at the centre of the Post Office scandal – from winning any new Whitehall contracts

Sub-postmasters took their fight for justice to the High Court after falling victim to faulty accounting software called Horizon

Sub-postmasters took their fight for justice to the High Court after falling victim to faulty accounting software called Horizon

Fujitsu created the Horizon software that made it appear as though money was missing from Post Office branches

Fujitsu created the Horizon software that made it appear as though money was missing from Post Office branches

In October 2022, Fujitsu was awarded a contract worth up to £5million to work on the UK's new emergency alert system

In October 2022, Fujitsu was awarded a contract worth up to £5million to work on the UK’s new emergency alert system

Senior Conservative MP David Davis suggested Fujitsu should be frozen out of future Government contracts in the wake of the Post Office scandal

Senior Conservative MP David Davis suggested Fujitsu should be frozen out of future Government contracts in the wake of the Post Office scandal

In October 2022, Fujitsu was awarded a contract worth up to £5million to work on the UK’s new emergency alert system.

The system, which is designed to warn the public of life-threatening situations such as extreme weather, was tested in April last year.

But users of the Three mobile phone network said they did not receive the test alert due to what was suspected to be a technical glitch.

The list of 197 deals won by Fujitsu since June 2012, as compiled by Tussell, includes a nearly £2.4billion contract for the Horizon system itself, with a £36million extension to keep the system running until 2025.

Senior Conservative MP David Davis suggested Fujitsu should be frozen out of future Government contracts in the wake of the Post Office scandal.

‘I think it slightly depends on how they respond to the question I’ve just given – how many of these people did you actually meddle in their computers?,’ the ex-Cabinet minister told BBC Radio 4’s Today programme.

Pressed on whether contracts should be put on hold, he added: ‘I would certainly suspend any possibility of new contracts until that is over.

‘What I do not want to see is one injustice followed by another. So we have got to stick with some process in this and make sure we are actually checking the facts and doing what we should do.’

Lord Arbuthnot, the former Tory MP who previously led a fight in the House of Commons on behalf of subpostmasters, said he was perplexed why Whitehall continued to favour the company.

‘I can’t understand why a company that behaves in such a devious way is still winning contracts,’ he told the Sunday Times. 

Former subpostmaster Lee Castleton, one of the victims of the scandal, also expressed incredulity at how Fujitsu continues to earn millions from public contracts.

‘It’s crazy, isn’t it? I don’t think Fujitsu will ever be held accountable,’ he told the newspaper.

Asked today if the Government would reconsider working with Fujitsu in the future, Prime Minister Rishi Sunak’s official spokesman said: ‘The cupability or otherwise of Fujitsu is something that is being examined as part of the independent inquiry process. So I’m unable to fully opine at this point.’ 

Pressed on whether the Government would consider freezing out Fujitsu from the awarding of new public contracts while the inquiry continues, the PM’s spokesman replied: ‘We wouldn’t look to act before we have established the full facts regarding Fujitsu’s cuplability or otherwise.

‘That work is being led by [inquiry chair] Sir Wyn Williams and we will act once he provides further information.’

Kevin Hollinrake, the postal services minister, last week told Times Radio that the Government ‘definitely should look at’ recouping money from Fujitsu to fund compensation payments to subpostmasters. 

A Fujitsu spokesman told : ‘The current Post Office Horizon IT statutory inquiry is examining complex events stretching back over 20 years to understand who knew what, when, and what they did with that knowledge.

‘The inquiry has reinforced the devastating impact on postmasters’ lives and that of their families, and Fujitsu has apologised for its role in their suffering.

‘Fujitsu is fully committed to supporting the inquiry in order to understand what happened and to learn from it.

‘Out of respect for the inquiry process, it would be inappropriate for Fujitsu to comment further at this time.’

Timeline of a travesty that’s still playing out 25 years on

  • 1999: The Horizon IT system from Fujitsu starts being rolled out to Post Office branches, replacing traditional paper-based accounting methods.
  • 2003: Sub-postmaster Alan Bates had his contract terminated by the Post Office after he refused to accept liability for £1,200 of losses in his branch in Llandudno, North Wales.
  • 2004: The branch in Bridlington, East Yorkshire, run by Lee Castleton, showed a shortfall of £23,000 over a 12-week period. Mr Castleton repeatedly asked the Post Office for help, but was sacked and sued for refusing to repay the cash. He was made bankrupt after a two-year legal battle, ordered to pay more than £300,000 for the company’s legal bill.
  • 2006: Jo Hamilton, sub-postmaster at South Warnborough, Hampshire, was sacked over financial discrepancies. She re-mortgaged her house twice to fill the shortfall and was charged with theft of £36,000. She later admitted a lesser charge of false accounting to avoid jail.
  • 2009: Computer Weekly magazine told the story of seven postmasters who had experienced unexplained losses. The Justice for Sub-postmasters Alliance (JFSA) was formed.
  • 2010: Mr Bates, from JFSA, writes to minister Sir Ed Davey about the flawed Horizon system and urges him to intervene. His warnings were dismissed.
  • 2012: With MPs raising concerns about convictions and the Horizon system, the Post Office launches an external review, with forensic accountants Second Sight appointed to investigate.
  • 2013: An interim report by Second Sight reveals serious concerns and defects in the IT system. The Daily Mail reveals dozens of postmasters may have been wrongly taken to court and jailed.
  • 2015: It is revealed the Post Office failed to properly investigate why money was missing and concluded computer failures may have been to blame. The Post Office finally stops prosecuting sub-postmasters but 700 end up being convicted.
  • 2017: A group legal action is launched against the Post Office by 555 sub-postmasters.
  • 2019: The High Court case ends in a £43million settlement but much of the cash was swallowed up in legal fees and victims received around £20,000 each. Post Office chief Paula Vennells awarded a CBE in New Year’s honours.
  • 2020: The Post Office agrees not to oppose 44 sub-postmasters’ appeals against conviction.
  • 2021: A public inquiry begins and is ongoing. The Court of Appeal quashes a further 39 convictions.
  • 2022: The Government announces a new compensation scheme.
  • 2023: Every postal worker wrongly convicted for Horizon offences will receive £600,000 compensation.
  • 2024: Mr Bates vs The Post Office first aired on ITV1 on New Year’s Day.

 

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