- MPs question Fujitsu contracts
- Fujitsu’s role in scandal scrutinized
- Government reviews Fujitsu’s future bids
Members of Parliament demanded that the Treasury and other public sector organisations disclose the specifics of any contracts awarded to Fujitsu since 2019, following the revelation by the European head of Fujitsu last month that employees were aware of IT system flaws dating back to 1999.
A total of contracts valued at over £2 billion were reached prior to 2019 and remained operational during the subsequent period, according to the Commons Treasury Committee.
The committee, which investigates Treasury policy and expenditure, demanded information regarding their agreements with Fujitsu in letters to HM Revenue and Customs (HMRC), the Financial Conduct Authority (FCA), and the Bank of England (BoE) last month.
Members of parliament demanded the disclosure of contracts after the head of Fujitsu in Europe acknowledged that personnel were aware of Horizon’s flaws as early as 1999.
The committee reported that all three companies incurred substantial expenditures with Fujitsu Services Ltd. or entities owned by Fujitsu Global:
- Since the judgement in 2019, HMRC has granted Fujitsu eight contracts totaling £1.39 billion. Additionally, there were six contracts in effect prior to the ruling that continued beyond 2019 but have since concluded.
- The FCA, a government-affiliated regulator that operates independently but is accountable to the Treasury, entered into agreements worth approximately £630 million in 2007. These agreements persisted following the High Court ruling, and the FCA currently holds six contracts with a cumulative value of approximately £9 million.
- The Bank of England verified that it had one contract from 2019 that was valued at £417,000 and was set to expire in August 2020.
The committee had inquired whether Fujitsu’s involvement in the Horizon scandal was taken into account during the bidding process and whether the termination of the contracts was a possibility in light of the controversy.
It was stated that the only response received was regarding a potential termination from the FCA, which confirmed that it had contemplated terminating the firm’s contract due to poor performance but ultimately chose to retain its services.
Harriet Baldwin, the committee chair and a member of the Conservative Party, stated, “I hope this increases scrutiny and transparency regarding Fujitsu’s role as a public sector supplier.”
Fujitsu has come under scrutiny in the wake of the ITV drama Mr Bates Vs The Post Office, which portrayed the erroneous culpability of hundreds of subpostmasters and subpostmistresses for accounting errors caused by the company’s defective software.
More than 700 individuals were prosecuted between 1999 and 2015, resulting in the loss of livelihoods, employment, and reputations for many.
It is regarded as the most egregious injustice in the annals of British history.
Compensation After Horizon Scandal
Those implicated in the Horizon scandal would be exonerated and compensated under a new law, according to Rishi Sunak. Those who participated in the group litigation order against the Post Office would also be eligible for an advance payment of £75,000.
Fujitsu expressed its “utmost remorse” to the scandal’s victims and pledged to contribute to the payment of compensation for those who were wrongfully convicted.
A spokesperson for HMRC stated regarding the contracts, “HMRC collaborates with countless IT partners, both large and small, and every single one of our contracts is accessible to the public via Contracts Finder.”
“The size and complexity of our IT estate means that multiple partners are involved in building and maintaining almost all of our systems and services.”
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A spokesperson for the government stated, “The repercussions of the Horizon scandal on postmasters and their families are abhorrent; it is of the utmost importance that this never occurs again.”
“Indeed, we have initiated a statutory investigation into the controversy in order to ascertain the precise nature of the error and to compensate those who were impacted.
“We applaud Fujitsu’s resolution to suspend the solicitation of bids from prospective government clients until the investigation is fully resolved. Prior to that, and in accordance with all contractual agreements, we maintain a vigilant assessment of Fujitsu’s business practices and performance.
