Monday, October 21, 2024

Inquiry reveals Fujitsu had Post Office in a difficult situation

The Post Office board had been trying to get out of its IT contract with Fujitsu as early as 2013, but the supplier had the upper hand, according to a former non-executive board member.

During the recent Post Office scandal inquiry, former Post Office chair Alice Perkins mentioned a document from July 2013 that showed the Post Office’s desire to replace Fujitsu and the Horizon system. Perkins explained that the contract with Fujitsu had to be extended to help navigate the transition to a new supplier.

Despite concerns expressed by various non-executive directors, including Perkins, about the relationship with Fujitsu, the Post Office struggled to move away from the supplier that had been involved in the Horizon scandal. Several attempts to replace Fujitsu failed, with the latest plan facing serious problems.

In April 2021, the Post Office announced plans to end the contract with Fujitsu and transition to a new system by 2025, but escalating costs and delays led to an additional £103m in government funding for the project. Fujitsu is now only willing to commit on a year-by-year basis while the Post Office seeks an alternative.

The Horizon scandal was first uncovered by Computer Weekly in 2009, shedding light on the struggles of subpostmasters affected by the faulty accounting software. The impact of the scandal continues to be felt, with efforts ongoing to replace the controversial Horizon IT system.