Friday, October 18, 2024

Post Office IT Department’s Emphasis on Securing Discounts Led to Procurement Issues

The Post Office’s IT department faced significant criticism for its hasty procurement of hardware for the New Branch IT (NBIT) project in pursuit of a 5% discount, according to testimony in a public inquiry.

During the latest session of the Post Office scandal inquiry, a non-executive director strongly criticized the IT department, upper management, and procurement teams for their costly errors. Evidence presented at the inquiry corroborated earlier reports by Computer Weekly highlighting mistakes in the Post Office’s initiative to replace the contentious Horizon system through the NBIT project, which have led to unexpected renovations and potential shortages of essential hardware for branches. Currently, thousands of point-of-sale devices, including monitors with built-in CPUs, keyboards, scanners, and printers, remain unused in a warehouse.

The NBIT project was introduced in May 2022, aiming to replace Horizon by 2025. However, as reported by Computer Weekly, it has encountered significant difficulties, prompting the Post Office to seek an additional £1 billion in public funding from HM Treasury to realign the initiative.

At the recent hearing, Saf Ismail, a subpostmaster and non-executive director of the Post Office, stated, “We were informed at the board that we needed to finalize the purchase of this hardware by late 2023. At that time, we were assured that it was a great deal, which is why we proceeded with a 5% discount.” Ismail, who joined the board in 2021 to represent subpostmasters, noted that the hardware is likely to remain in warehouses for years.

He expressed concerns based on recent discussions at the board level regarding the readiness for NBIT, indicating that it seems unlikely to be prepared within the next two to three years. “It’s clear that we are not prepared and will not be ready for NBIT in that timeframe, which suggests that acquiring this equipment was likely the wrong choice,” Ismail remarked.

This situation has led the Post Office to consider extending its contract with Fujitsu, as subpostmasters may be required to modify their counters to accommodate the new hardware, which is not compatible with existing setups. There is also a risk of a shortage of replacement devices prior to the completion of NBIT, as support for current hardware nears its end.

“This issue has been a topic of discussion at the board over the past few months, yet I have not observed any accountability regarding that decision,” Ismail told the inquiry. He attributed the problems to “individuals in the IT department and upper executives” and criticized the Post Office’s procurement teams for their role in the fiasco.

In response to a query from Computer Weekly, a Post Office spokesperson declined to comment on the matter, stating that individuals such as IT staff Simon Oldnall and Chris Brocklesby will soon provide testimony to the inquiry, which is the appropriate venue for addressing these issues.

The Post Office scandal was first brought to light by Computer Weekly in 2009, revealing the experiences of seven subpostmasters who suffered due to the Horizon accounting software, leading to what has been recognized as the most extensive miscarriage of justice in British history.

• 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 incompetence leads to a significant burden on taxpayers