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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.

More on Post Office Scandal

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”.

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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Britain’s biggest miscarriages of justice

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Rishi Sunak announced that a new law would be introduced to exonerate and compensate those 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.”

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How Vietnam is using crypto to fix its FATF reputation

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How Vietnam is using crypto to fix its FATF reputation

How Vietnam is using crypto to fix its FATF reputation

Vietnam is leveraging crypto regulation to meet FATF standards, combat digital asset fraud and rebuild its international financial reputation.

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UAE Golden Visa is ‘being developed independently‘ — TON Foundation

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UAE Golden Visa is ‘being developed independently‘ — TON Foundation

UAE Golden Visa is ‘being developed independently‘ — TON Foundation

The TON Foundation distanced itself from initial Golden Visa claims, saying the move is an independent initiative with no official backing from the United Arab Emirates government.

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Building societies step up protest against Reeves’s cash ISA reforms

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Building societies step up protest against Reeves's cash ISA reforms

Building society chiefs will this week intensify their protests against the chancellor’s plans to cut cash ISA limits by warning that it will push up borrowing costs for homeowners and businesses.

Sky News has obtained the draft of a letter being circulated by the Building Societies Association (BSA) among its members which will demand that Rachel Reeves abandons a proposed move to slash savers’ annual cash ISA allowance from the existing £20,000 threshold.

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The draft letter, which is expected to be published this week, warns the chancellor that her decision would deter savers, disrupt Labour’s housebuilding ambitions and potentially present an obstacle to economic growth by triggering higher funding costs.

“Cash ISAs are a cornerstone of personal savings for millions across the UK, helping people from all walks of life to build financial resilience and achieve their savings goals,” the draft letter said.

“Beyond their personal benefits, Cash ISAs play a vital role in the broader economy.

“The funds deposited in these accounts support lending, helping to keep mortgages and loans affordable and accessible.

More on Rachel Reeves

“Cutting Cash ISA limits would make this funding more scarce which would have the knock-on effect of making loans to households and businesses more expensive and harder to come by.

“This would undermine efforts to stimulate economic growth, including the government’s commitment to delivering 1.5 million new homes.

“Cutting the Cash ISA limit would send a discouraging message to savers, who are sensibly trying to plan for the future and undermine a product that has stood the test of time.”

The chancellor is reportedly preparing to announce a review of cash ISA limits as part of her Mansion House speech next week.

While individual building society bosses have come out publicly to express their opposition to the move, the BSA letter is likely to be viewed with concern by Treasury officials.

The Nationwide is by far Britain’s biggest building society, with the likes of the Coventry, Yorkshire and Skipton also ranking among the sector’s largest players.

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In the draft letter, which is likely to be signed by dozens of building society bosses, the BSA said the chancellor’s proposals “would make the whole ISA regime more complex and make it harder for people to transfer money between cash and investments”.

“Restricting Cash ISAs won’t encourage people to invest, as it won’t suddenly change their appetite to take on risk,” it said.

“We know that barriers to investing are primarily behavioural, therefore building confidence and awareness are far more important.”

The BSA called on Ms Reeves to back “a long-term consumer awareness and information campaign to educate people about the benefits of investing, alongside maintaining strong support for saving”.

“We therefore urge you to affirm your support for Cash ISAs by maintaining the current £20,000 limit.

“Preserving this threshold will enable households to continue building financial security while supporting broader economic stability and growth.”

The BSA declined to comment on Monday on the leaked letter, although one source said the final version was subject to revision.

The Treasury has so far refused to comment on its plans.

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