Sunak urged to suspend Fujitsu contracts over Post Office IT scandal

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Rishi Sunak is dealing with calls to droop new public contracts with Fujitsu, after it emerged that the IT big has gained billions in offers with the federal government regardless of figuring out about its involvement within the Horizon scandal.

Postal minister Kevin Hollinrake stated the federal government believes it has a “answer” to overturn the wrongful convictions of Put up Workplace employees – promising an “imminent” announcement.

It comes because the highlight activates the corporate on the centre of the scandal, after Fujitsu’s defective accounting software program Horizon helped result in the conviction of greater than 700 Put up Workplace department managers.

Former Tory cupboard minister Nadhim Zahawi stated Fujitsu ought to not get “VIP” therapy for contracts, amid rising questions on why the federal government has not severed ties with the agency.

And senior Labour and Lib Dem MPs have known as for a “moratorium” on all new contracts with Fujitsu till the corporate is held accountable for its function within the scandal.

Since 2012, the general public sector as an entire has awarded the corporate nearly 200 contracts price a mixed complete of £6.8bn, in keeping with analysts Tussell.

And Fujitsu has gained £4.9bn in public-sector offers since a 2019 courtroom ruling which discovered its Horizon system was badly flawed, in keeping with the Monetary Occasions.

Round 43 contracts are nonetheless in operation – price a complete of £3.6bn – together with the contract for the Put up Workplace Horizon system and the federal government’s flood warning system.

Fujitsu was given contracts by way of “VIP” precedence lanes, the so-called “framework agreements”, which assist authorities signal offers with most well-liked suppliers, the i reported.

Mr Zahawi stated that the corporate must be suspended from any precedence lanes. “Fujitsu has not been correctly held to account for this main scandal. They should bear their a part of the duty for this debacle,” he instructed the newspaper.

Senior Labour MP Liam Byrne, chair of the enterprise choose committee, stated ministers “should not reward failure any additional”. He added: “It’s important there’s now a moratorium on new contracts for Fujitsu till we’ve bought to the underside of this horrible miscarriage of justice.”

Bosses at Fujitsu have been known as to reply questions from the enterprise committee subsequent week – however haven’t but stated whether or not they may attend. Mr Byrne stated it was “important that Fujitsu confess how they bought it so unsuitable”.

Labour MP Kevan Jones, a number one campaigner on the problem, stated Fujitsu shouldn’t be allowed to win new contracts till it correctly defined “its function and duties” within the scandal.

Sarah Olney, the Liberal Democrats’ spokesperson for the Treasury, stated suspending contracts till the tip of the general public inquiry was the “very least” the federal government may do.

It might be very troublesome for the federal government to finish its involvement with Fujistu. The corporate gives IT providers to a number of authorities departments together with the Dwelling Workplace, the International Workplace, Defra and the Ministry of Defence.

These providers embrace offering the Police Nationwide Pc – which shops people’ prison data – and the federal government’s flood warning system, in addition to the nationwide emergency alerts system launched in March 2023.

Fujitsu does vital work with HMRC, with contracts price greater than £1bn together with a deal awarded in February 2022.

No 10 stated on Tuesday that Fujitsu could be “held accountable”, legally or financially, if the general public inquiry finds that the corporate blundered within the Horizon scandal.

However the PM’s spokesperson didn’t say the federal government would cease awarding contracts to the corporate if it was discovered to be at fault – saying solely that the conduct of firms “basically” could be thought of as a part of the procurement course of.

Requested if Fujitsu must be prosecuted, postal minister Mr Hollinrake stated it was vital to determine “precisely who’s accountable, people or organisations” on the public inquiry earlier than any motion might be taken – together with doable prosecutions or “monetary sanctions”.

Mr Hollinrake instructed Sky Information on Wednesday that “we’re very, very shut” to an announcement on overturning Horizon convictions – saying the federal government had arrived at an answer.

It comes after justice secretary Alex Chalk on Tuesday stated “lively consideration” was being given to bringing ahead laws aimed toward overturning at the very least 700 convictions en masse.

Mr Hollinkrake insisted that the federal government had been contemplating such an strategy earlier than the ITV drama thrust the problem again into the highlight. Requested whether or not there may be proof of that, Mr Hollinrake stated: “It’s not one thing we’d put in public,” he instructed BBC Radio 4.

The unbiased Horizon Compensation Advisory Board may also meet later. The advisory board, whose members embrace long-time campaigners Kevan Jones and Tory peer Lord Arbuthnot, have known as for Put up Workplace convictions to be “overturned”.

Mr Hollinrake may be part of the lunchtime assembly – with attendees seemingly anticipating an replace on any plans to quash convictions and efforts to speed up compensation funds.

The Legal Circumstances Evaluate Fee (CCRC) would usually take a look at the person convictions and doubtlessly ship them to the Court docket of Enchantment. However the unprecedented scale of the Horizon scandal may require the extraordinary step of blanket laws.

A Fujitsu spokesman stated: “The present Put up Workplace Horizon IT statutory inquiry is analyzing advanced occasions stretching again over 20 years to know who knew what, when, and what they did with that data.

“The inquiry has bolstered the devastating affect on postmasters’ lives and that of their households, and Fujitsu has apologised for its function of their struggling.”

They added: “Fujitsu is totally dedicated to supporting the inquiry in an effort to perceive what occurred and to study from it. Out of respect for the inquiry course of, it will be inappropriate for Fujitsu to remark additional at the moment.”