Fujitsu is set to snag contracts worth over half a billion pounds from HMRC this year alone. The UK public sector keeps rewarding the supplier, even after its involvement in the Post Office scandal.
HMRC is Fujitsu’s biggest source of income in the UK government, but it’s not just limited to that. The company is chasing hundreds of millions in other public sector contracts too. This is all happening while Fujitsu has voluntarily paused new bids and still hasn’t fully committed to addressing the harm it caused. They backed the Post Office when it wrongfully prosecuted subpostmasters for account discrepancies caused by software errors they knew about.
Peer James Arbuthnot, a dedicated advocate for the victims of the Post Office scandal, argues for “expunging Fujitsu from British influence.” He stated, “If Fujitsu were an individual, it would be facing years, possibly decades, in prison.” He believes Fujitsu was not just a bystander; it played a key role in the fraudulent prosecutions while the government leans unacceptably on the company.
Last year, HMRC spent over £240 million on Fujitsu, and this year’s spending could double that amount, leading some to claim HMRC is becoming Fujitsu’s “cash cow.” Despite reports that they might lose their role in HMRC’s Traders Support Service, an internal meeting revealed that Fujitsu is confident about bidding for a new £370 million contract, following a previous £240 million agreement made in 2020.
Additionally, a direct deal between HMRC and Fujitsu worth over £200 million is in place for hardware and cloud services—the North Star contract—without competitive bidding. HMRC is also renewing its Computer Environment for Self-Assessment (CESA) contract, worth nearly £60 million, where Fujitsu is the incumbent.
The total for the broader public sector is even higher. For instance, in December 2024, Fujitsu secured a one-year extension to its £40 million Horizon contract with the Post Office. Reports suggest more deals are on the horizon with HMRC, the Home Office, and the Ministry of Defence.
This wave of contracts occurs during Fujitsu’s self-imposed pause on new bids, which it announced in January after the ITV dramatization of the Post Office scandal brought it back into the spotlight. Peer Kevan Jones criticized this pause as “hollow.” He emphasized that Fujitsu’s existing relationships with numerous public sector bodies make their claims of halting new bids seem insincere.
Jones stated, “Fujitsu has admitted its central role in the Horizon scandal and is hiding behind the inquiry’s outcomes while still making huge profits from government contracts.” He insists that the government should suspend all Fujitsu contracts until it contributes significantly to the victims’ compensation.
When asked about its bidding pause, Fujitsu reiterated its commitment to adhering to voluntary restrictions during the ongoing inquiry, which is expected to conclude this year. The company indicated it would assess its contributions to compensation based on the inquiry’s findings.
Computer Weekly posed questions to the government about the fairness of awarding lucrative contracts to Fujitsu before it addresses the costs associated with the Post Office scandal. A government spokesperson stated, “Those responsible must be held accountable, but we need to wait for the inquiry to conclude. Fujitsu has autonomy in deciding its bidding approach, and we are monitoring their conduct and performance.”
Arbuthnot expressed urgency, saying, “The process of removing Fujitsu’s influence needs to start now and wrap up quickly. Delaying sends the wrong message about our stance on unethical behavior.” He raised the crucial question of whether the government would still extend contracts to such a company if it were a convicted individual instead.
Since Computer Weekly first reported on the Post Office scandal in 2009, exposing the harrowing stories of affected subpostmasters, this issue remains a pivotal moment in British legal and corporate history.