Fujitsu is set to have received more than £3.4bn through contracts from Treasury-linked organisations since 2019, despite its role in the Post Office scandal, MPs have found.
The international tech firm, which is under intense scrutiny, was awarded around £1.4bn worth of deals since a 2019 High Court ruling concluding there had been numerous bugs and errors in its Horizon IT system.
More than £2bn worth of contracts were agreed before 2019 and remained active in the following period, the Commons Treasury Committee said.
The committee – which examines Treasury expenditure and policy – wrote to organisations last month including HM Revenue and Customs (HMRC), the Financial Conduct Authority (FCA) and the Bank of England (BoE) demanding details of their agreements with Fujitsu.
MPs called for the revelation of contracts after the boss of Fujitsu in Europe admitted that staff knew of faults in Horizon as far back as 1999.
The committee reported all three spent considerable sums with Fujitsu Services Ltd or Fujitsu Global-owned entities:
HMRC awarded Fujitsu eight contracts worth £1.39bn since the ruling in 2019, while a further six contracts before the ruling remained active after 2019 but have since ended.
The FCA – an independent regulator from the government but which reports to the Treasury – agreed deals worth around £630m dating back to 2007 which continued to run after the High Court judgment, and still maintains six contracts worth a combined total of around £9m.
The Bank of England confirmed it had one contract worth £417,000 from 2019 which expired in August 2020.
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Fujitsu boss apologises to subpostmasters
The committee had asked them whether Fujitsu’s role in the Horizon scandal was considered during the tendering process and if they thought about ending the deals in light of the scandal.
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It said the only response received was about a possible termination from the FCA which confirmed it considered closing a contract with the firm due to poor performance but decided to keep its services.
Chairwoman of the committee and Tory MP Harriett Baldwin said she “hopes this will aid transparency and scrutiny around the role of Fujitsu as a public sector supplier”.
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The spotlight is on Fujitsu following the ITV drama Mr Bates Vs The Post Office, which depicted how hundreds of sub-postmasters and sub-postmistresses were wrongly held responsible for accounting errors in the faulty software developed by the company.
Between 1999 and 2015, more than 700 were prosecuted, causing many to lose their jobs, livelihoods and reputations.
It is considered the biggest miscarriage of justice in British history.
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Rishi Sunak announced that a new law would be introduced to exonerate and compensatethose caught up in the Horizon scandal and that those who were part of the group litigation order against the Post Office would also be eligible for an upfront payment of £75,000.
Fujitsu offered its “deepest apologies” to victims of the scandal and said it would contribute towards compensation payments for those wrongly convicted.
On the contracts, a HMRC spokesperson said: “HMRC works with hundreds of IT partners – big and small – and all of our contracts are publicly available through Contracts Finder.
“The size and complexity of our IT estate means that multiple partners are involved in building and maintaining almost all of our systems and services.”
A government spokesperson said: “The impact the Horizon scandal has had on postmasters and their families is utterly horrendous, and it is crucial that something like this can never happen again.
“That is why we have launched a statutory inquiry into the scandal to get to the bottom of what went wrong, as well as providing compensation for those affected.
“We welcome Fujitsu’s decision to pause bidding for work with new government customers until such time as the inquiry concludes. Ahead of that, and as with all contracts, we continue to keep Fujitsu’s conduct and commercial performance under review.”
Lucy Powell has accused Bridget Phillipson’s team of “throwing mud” and briefing against her in the Labour deputy leadership race in a special episode of Sky’s Electoral Dysfunction podcast.
With just days to go until the race is decided, Sky News’ political editor Beth Rigby spoke to the two leadership rivals about allegations of leaks, questions of party unity and their political vision.
Ms Powell told Electoral Dysfunction that through the course of the contest, she had “never leaked or briefed”.
But she said of negative stories about her in the media: “I think some of these things have also come from my opponent’s team as well. And I think they need calling out.
“We are two strong women standing in this contest. We’ve both got different things to bring to the job. I’m not going to get into the business of smearing and briefing against Bridget.
“Having us airing our dirty washing, throwing mud – both in this campaign or indeed after this if I get elected as deputy leader – that is not the game that I’m in.”
Ms Powell was responding to a “Labour source” who told the New Statesman last week:“Lucy was sacked from cabinet because she couldn’t be trusted not to brief or leak.”
Ms Powell said she had spoken directly to Ms Phillipson about allegations of briefings “a little bit”.
Image: Bridget Phillipson (l) and Lucy Powell (r) spoke to Sky News’ Beth Rigby in a special Electoral Dysfunction double-header. Pics: Reuters
Phillipson denies leaks
But asked separately if her team had briefed against Ms Powell, Ms Phillipson told Rigby: “Not to my knowledge.”
And Ms Phillipson said she had not spoken “directly” to her opponent about the claims of negative briefings, despite Ms Powell saying the pair had talked about it.
“I don’t know if there’s been any discussion between the teams,” she added.
On the race itself, the education secretary said it would be “destabilising” if Ms Powell is elected, as she is no longer in the cabinet.
“I think there is a risk that comes of airing too much disagreement in public at a time when we need to focus on taking the fight to our opponents.
“I know Lucy would reject that, but I think that is for me a key choice that members are facing.”
She added: “It’s about the principle of having that rule outside of government that risks being the problem. I think I’ll be able to get more done in government.”
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But Ms Powell, who was recently sacked by Sir Keir Starmer as leader of the Commons, said she could “provide a stronger, more independent voice”.
“The party is withering on the vine at the same time, and people have got big jobs in government to do.
“Politics is moving really, really fast. Government is very, very slow. And I think having a full-time political deputy leader right now is the political injection we need.”
The result of the contest will be announced on Saturday 25 October.
The deputy leader has the potential to be a powerful and influential figure as the link between members and the parliamentary Labour Party, and will have a key role in election campaigns. They can’t be sacked by Sir Keir as they have their own mandate.
The contest was triggered by the resignation of Angela Rayner following a row over her tax affairs. She was also the deputy prime minister but this position was filled by David Lammy in a wider cabinet reshuffle.
HMRC sent nearly 65,000 warning letters to crypto investors last year, more than double the previous year, as the UK steps up efforts to trace undeclared capital gains.
The government says it is exploring what “additional resources and support are required” to allow “all fans” to attend Maccabi Tel Aviv’s match against Aston Villa next month.
Supporters of the Israeli side have been told they are not allowed to attend November’s game in Birmingham after a decision by Birmingham’s Safety Advisory Group (SAG).
The group – made up of local stakeholders, including representatives from the council, police and event organisers – said the decision was due to a high risk of violence based on “current intelligence and previous incidents”.
The decision has been criticised across the political spectrum, with Sir Keir Starmer describing it as a “wrong decision” while Tory opposition leader Kemi Badenoch called it a “national disgrace”.
In a statement on Friday night, a government spokesperson said: “No one should be stopped from watching a football game simply because of who they are.
“The government is working with policing and other partners to do everything in our power to ensure this game can safely go ahead, with all fans present.
“We are exploring what additional resources and support are required so all fans can attend.”
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Birmingham residents react to the Maccabi fan ban
Meanwhile, Home Secretary Shabana Mahmood said: “Antisemitism is a stain on our society that shames us all. Every football fan, whoever they are, should be able to watch their team in safety.
“This government is doing everything in our power to ensure all fans can safely attend the game.”
The prime minister’s spokesman previously said Sir Keir would “do everything in his power to give Jewish communities the security they deserve”.