MPs Call for Fujitsu to Be Excluded from Government Contracts
MPs have demanded that Fujitsu, the company behind the Post Office Horizon scandal, be barred from securing government contracts. This call comes as the firm has failed to contribute any compensation to the victims of the miscarriage of justice.
No Financial Contribution from Fujitsu
The Business and Trade Committee (BTC) highlighted that Fujitsu has not paid a single penny towards the redress bill, which is estimated to reach nearly £2 billion. This includes compensation for sub-postmasters who were wrongly convicted due to faulty Horizon software.
Liam Byrne, chairman of the BTC, stated in a report: '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 added: '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.'
Ongoing Contracts and Moratorium
Despite Fujitsu announcing a self-imposed moratorium on bidding for new government contracts in January 2024, the company continues to supply its IT system to the Post Office and various government departments through existing agreements. The BTC has called for an expansion of this moratorium to prevent Fujitsu from bidding on any public contracts.
The Post Office has paid Fujitsu a total of £2.5 billion, including over £600 million since deciding to seek an alternative to the flawed Horizon software.
Scale of the Scandal and Compensation
The Post Office Horizon scandal, which occurred between 1999 and 2015, is regarded as Britain's biggest miscarriage of justice. Hundreds of people were wrongly prosecuted for theft and fraud due to faulty software that incorrectly indicated money was missing from branch accounts.
Public outrage grew after the scandal was highlighted in a hit ITV drama, leading to announcements of compensation for victims. So far, more than 11,500 claimants have received payments worth approximately £1.48 billion. The total bill is expected to rise to around £2 billion once legal and administrative costs are factored in.
Compensation Process Failings
The BTC report also identified serious structural failings in the compensation process. Thousands of victims are still awaiting compensation, facing delays, inadequate offers, and administrative procedures that retraumatise them.
A spokeswoman for Fujitsu 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.'
Potential Predecessor Issues
The committee raised concerns that Horizon's predecessor, Capture, may have had similar flaws, potentially contributing to unsafe convictions. They warned that the current number of cases might only be the 'tip of another iceberg' and urged Parliament to act quickly to quash these convictions and ensure justice for all victims.
A compensation scheme for sub-postmasters affected by the Capture system was launched last year.
Political and Public Response
A spokesman for the Post Office said: '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.'
Tory MP Dame Harriett Baldwin, the shadow postal affairs minister, commented: 'It is shameful that thousands of sub-postmasters are still waiting for justice while taxpayers are footing the entire bill. Fujitsu has rightly acknowledged its role in the Horizon scandal, yet it has still not contributed a penny towards the £2 billion redress cost. Ministers must urgently set out what steps they are taking to recoup money from Fujitsu so the company pays the price for this miscarriage of justice.'
