Tuesday, December 3, 2024

Post Office Seeks Tech-Savvy Board Member as IT Crisis Unfolds

The Post Office is actively seeking a non-executive board member with a technology background to address ongoing challenges related to its IT project aimed at replacing the contentious Horizon system.

The initiative to replace Fujitsu’s Horizon system, recognized as the New Branch IT (NBIT) project, is currently exceeding its budget and running behind schedule, raising concerns about its future viability. During the recent public inquiry into the Post Office Horizon scandal, the organization’s company secretary, Rachel Scarrabelotti, emphasized the need for a board member with technical expertise in light of the persistent IT issues faced by the Post Office and its troubled history with the Horizon system. “Absolutely, because we are embarking on a major technology transformation,” she stated.

Barrister Christopher Jacobs, representing the victims of the Horizon scandal, asked if the current Post Office board included anyone meeting this profile. Scarrabelotti responded that it did not but revealed, “We are currently recruiting for an independent executive director with a skill set in technology and cyber.”

Chris Brocklesby, the former chief transformation officer at the Post Office, was questioned during the inquiry about the necessity of having someone with IT experience on the board, considering the history of issues being examined. Brocklesby, who has held CIO roles at several major firms including Tesco Bank and Vodafone UK, acknowledged that this has become increasingly important on other boards, noting the trend of appointing specific non-executive directors (NEDs) focused on digital or data.

The Post Office finds itself embroiled in an IT scandal after wrongfully blaming and prosecuting subpostmasters for accounting discrepancies caused by faults in the Horizon system. The project to replace Horizon, which began in 2022, is struggling significantly; initially scheduled for completion in March 2025, it is now projected to conclude by 2030—if at all. Costs have ballooned from the expected £180 million to over £1 billion.

The Post Office is also looking to extend its contract with Fujitsu, which would see the provider receiving an additional £180 million in taxpayer funds to continue operating the controversial Horizon IT system for another five years. During Brocklesby’s inquiry appearance, he indicated that if everything goes smoothly between now and June 2026, the new system would be gradually developed.

“It is being constructed incrementally, beginning with a specific number of the transactions that postmasters utilize, and subsequently expanding to include more transactions,” he explained. He added that the system would be piloted in up to 50 branches to collect feedback from subpostmasters.

Should all proceed as planned, Brocklesby stated that deployment of the system to branches could start in June 2026, allowing the Post Office to begin phasing out Horizon in those locations and transitioning entirely to the NBIT system for customer service. He noted that the training process for postmasters on the new system and the transition from the old one would occur between mid-2026 and the end of 2028.

Throughout this timeline, the Post Office intends to gradually discontinue certain services provided by Fujitsu, aiming to completely eliminate reliance on Fujitsu for Horizon support by late 2028.

For more insights, explore:
– What you need to know about the Horizon scandal
– ITV’s documentary – Mr. Bates vs The Post Office: The real story
– The implications of Post Office and Fujitsu’s actions for taxpayers.