Fujitsu ought to pay £300 million as an interim payment to help cover the costs linked to the Post Office scandal, according to Labour peer Kevan Jones.
In a recent debate about the sluggish process of providing financial compensation to the victims, Jones pointed out that Fujitsu has admitted its role in the mess and promised to contribute financially, yet it hasn’t handed over a single pound. He highlighted that, as of now, Fujitsu has not compensated any victims while still raking in substantial profits through government contracts. He emphasized, “The taxpayer is disbursing nearly £600 million to victims, and many are still waiting for their due compensation.”
With 15 years of campaigning for affected subpostmasters under his belt, Jones suggested that Fujitsu is trying to evade accountability by hiding behind the ongoing public inquiry. He urged them to make the £300 million interim payment now, stating that there’s nothing more to uncover that isn’t already known.
Jones also criticized Fujitsu’s temporary halt on bidding for new government contracts, calling it insufficient. He argued that the government should prevent Fujitsu from participating in future contracts until it makes significant reforms. While he acknowledged the potential impact of this for the company’s UK employees and UK-Japan relations, he still felt it was necessary.
Conservative peer James Arbuthnot, who has longstanding ties with Jones in the fight for justice, stressed that Fujitsu played a crucial role in the scandal, saying, “Fujitsu did much more than stand idly by while subpostmasters were wrongly prosecuted.” He pointed to the company’s acceptance of a moral obligation to contribute financially but highlighted how the taxpayer continues to bear the brunt of the costs.
Agreeing with Jones, Arbuthnot noted the need for an interim payment from Fujitsu. He suggested that £700 million would still fall short of the £1.5 billion total costs currently estimated by the taxpayer, questioning why the government should extend Fujitsu’s contracts if they refuse to help cover these costs.
Fujitsu has secured significant government contracts despite its promise to step back from new bids after the scandal became public. HMRC alone spent over £240 million with Fujitsu last year, and that number might double this year, which raises concerns that HMRC has become a cash cow for the company.
Recent reports show that Fujitsu is still pursuing a new £370 million contract with HMRC, even though there were indications it might be replaced for the Traders Support Service. Furthermore, Fujitsu has a direct deal with HMRC for procurement worth over £200 million, bypassing competitive bidding altogether. The company also looks set to extend a £60 million contract for self-assessment services with HMRC.
Looking at the broader picture, Fujitsu has secured a one-year extension to its £40 million Horizon contract with the government-owned Post Office. Reports suggest there could be many more potential deals with HMRC, the Home Office, and the Ministry of Defence on the horizon.
The saga dates back to 2009 when Computer Weekly first uncovered serious issues surrounding Fujitsu’s Horizon accounting software, leading to what is now recognized as one of the greatest miscarriages of justice in British history.