Details have surfaced regarding declining sales and a £200 million cash influx from Japan to Fujitsu UK. However, the company’s stance on providing financial redress to subpostmasters impacted by the Post Office scandal remains ambiguous.
An anonymous Fujitsu employee expressed their concerns, stating, “The priority lies with Fujitsu’s shareholders, not the subpostmasters, employees, or customers.” According to a report by Computer Weekly last week, an internal Fujitsu conference labeled “company confidential” featured a senior manager discussing the company’s decision not to grant an annual pay rise this year.
During the call, internal details revealed that Dave Riley, Fujitsu UK’s head of public sector, acknowledged a loss exceeding £50 million in contracts due to public outrage surrounding the Post Office Horizon scandal. He also mentioned that the Japanese headquarters provided a £200 million cash injection to support the UK operations in light of certain financial metrics, which could have hindered their ability to compete for public sector projects. “It’s our moral obligation to ensure the business can sustain itself and continue bidding for public sector work,” he informed the staff.
Earlier in the year, Fujitsu’s European head, Paul Patterson, also spoke of a moral obligation regarding the financial implications stemming from the Horizon scandal, which has cost UK taxpayers billions. However, Fujitsu has yet to commit to a specific financial contribution, opting to delay any decisions until the outcomes of the public inquiry are released.
The skepticism expressed by the Fujitsu employee is further reinforced by the company’s previous assurance in January to refrain from public sector bidding until the inquiry is finished. Leaked documents indicated that Fujitsu staff were still provided with instructions for pursuing government contracts during this supposed moratorium, with a senior UK executive referring to it as merely an “extra gateway.”
When asked if the funds from Japan would contribute to the financial recovery for subpostmasters, Fujitsu stated, “The £200 million is part of a routine corporate review process across all legal entities within the Fujitsu group. This measure was taken to ensure that Fujitsu Services Ltd can effectively carry out its business operations.”
Between 1999 and 2015, numerous subpostmasters were wrongfully prosecuted and convicted based on evidence from Fujitsu’s flawed Horizon system. Despite evidence pointing to potential errors, Fujitsu actively aided the Post Office in prosecuting these individuals, asserting in court that the system was not responsible for the unexplained deficits.
Fujitsu’s extensive reliance on public sector contracts—a legacy from its acquisition of ICL in the late 1990s—heightens its accountability in this matter. Currently, UK taxpayers face a burden of at least £1.15 billion to address the fallout from the scandal, which unjustly penalized subpostmasters for errors linked to computer malfunctions. The costs incurred, including legal fees, public inquiry expenses, and the replacement of the Horizon system, will mean that the total financial toll will far exceed initial redress schemes for subpostmasters.
The recent cash injection from Japan prompts further scrutiny of Fujitsu’s intentions to provide restitution for the affected subpostmasters. Fujitsu has indicated a willingness to work with the government in determining its financial contribution based on the inquiry’s findings; however, the final report, chaired by Wyn Williams, isn’t expected until next year.
Sir Alan Bates, a longstanding campaigner for justice for affected subpostmasters, remarked that Fujitsu will likely defer any responsibility until the Williams report is released. He suggested that a clear commitment, such as contributing a percentage of total costs, would represent a positive step forward.
The Post Office scandal had previously remained largely unrecognized until recently when ITV aired a dramatization. Despite the government’s awareness of the issue, Fujitsu continued to secure lucrative contracts over the years. Meanwhile, the Post Office intends to renew Fujitsu’s Horizon contract for an additional five years at a cost of £180 million due to ongoing difficulties in implementing a replacement system.
The Post Office scandal was initially brought to light by Computer Weekly in 2009, showcasing the experiences of several subpostmasters and the challenges they faced with the Horizon accounting software, which became the focal point of one of the UK’s most significant miscarriages of justice (see below for a timeline of Computer Weekly’s coverage of the scandal since 2009).
• Also read: What you need to know about the Horizon scandal •
• Also watch: ITV’s documentary – Mr Bates vs The Post Office: The real story •
• Also read: Post Office and Fujitsu’s negligence and incompetence lead to massive taxpayer liability •