MPs Condemn Fujitsu Over Zero Financial Contribution to Post Office Scandal Redress
The Business and Trade Committee has issued a scathing report, criticising Fujitsu for failing to contribute "a penny" towards the nearly £2 billion redress bill for victims of the Post Office Horizon scandal. The committee also called for urgent action to quash pre-Horizon convictions, highlighting what it described as "serious structural failings" in the compensation process.
Compensation Schemes and Delays
More than 11,500 claimants have received payments worth approximately £1.48 billion through various compensation schemes established for postmasters affected by faulty versions of the Horizon computer system. The total costs of redress escalate to around £2 billion when legal and administrative expenses are factored in, including those related to the earlier Capture system.
The Horizon accounting system, operated by Japanese technology firm Fujitsu, erroneously indicated that money was missing from branch accounts. This flaw lies at the heart of the long-running Post Office scandal, which resulted in approximately 1,000 wrongful prosecutions and convictions across the UK between 1999 and 2015.
Committee Findings and Criticisms
While acknowledging some progress in delivering redress, the Business and Trade Committee emphasised that thousands of sub-postmasters continue to await compensation. Its report details how many victims face persistent delays, inadequate offers, and administrative procedures that "retraumatise" individuals who have already suffered profound injustice.
Liam Byrne, chairman of the committee, stated: "Thousands of victims are still waiting for fair redress, while the processes designed to help them are too often slow, bureaucratic and retraumatising. That is simply unacceptable after one of the greatest miscarriages of justice in British history."
He further criticised Fujitsu, noting: "Worse, Fujitsu has yet to contribute a penny to the nearly £2 billion redress bill, even as it continues to benefit from public contracts. That cannot continue. It is simply wrong that taxpayers are covering the costs for Fujitsu’s sins while Fujitsu is still profiting from taxpayers-funded contracts."
Fujitsu's Position and Government Contracts
The committee reported that Fujitsu has acknowledged a "moral obligation" to contribute to redress costs and expressed commitment to doing so. However, the firm has made no interim payment nor agreed to any specific financial figure. Fujitsu continues to supply its IT systems to the Post Office and various Government departments through multiple contracts.
A Fujitsu spokeswoman responded: "We continue to work with UK Government to ensure we adhere to the voluntary restrictions we put in place regarding bidding for new contracts while the Post Office Inquiry is ongoing, and are engaged with Government regarding Fujitsu’s contribution to compensation."
Calls for Action and Broader Concerns
During an appearance on BBC Radio 4's Today programme, Liam Byrne urged ministers to adopt a tougher stance with Fujitsu and "demand an interim payment now." He accused the company of attempting to evade responsibility, stating: "They’re trying to get away with it, that’s what they’re trying to do. They are being allowed to get away with it."
Byrne also suggested that the Government had obscured the fact it awarded half a billion pounds' worth of contracts to Fujitsu following the scandal. While acknowledging that some contracts, such as those with the Ministry of Defence, involve "critical state services," he stressed it was "simply not right that a company like Fujitsu has contributed nothing" to the redress bill.
Additionally, the committee expressed concern over new evidence indicating that unsafe convictions linked to earlier systems like Capture might represent "only the tip of another iceberg." Byrne called for Parliament to act swiftly to quash these convictions and ensure all victims receive the justice they deserve.
Responses from Post Office and Government
A compensation scheme for sub-postmasters forced to repay shortfalls from the faulty Capture accounting system was launched last year. A Post Office spokeswoman said the organisation would review the committee's recommendations and continue collaborating closely with the Government.
She added: "We welcome the scrutiny of the committee and its commitment to ensuring full, fair and timely redress is paid to those harmed during the Horizon scandal. Progress has been made with 87% of eligible Horizon Shortfall Scheme applications having received an offer and £882 million paid through the scheme. We are processing applications as quickly as possible to bring resolution to those who have applied."
A Government spokeswoman stated: "We must never lose sight of the Horizon scandal’s human impact on postmasters and their families. The amount we’ve paid out has increased more than sixfold as part of our ongoing commitment to deliver justice to victims as swiftly as possible. We welcome today’s report and agree that it is crucial that Fujitsu meets its moral obligation to contribute to the total costs of the scandal, and will publish our response to its recommendations shortly."
