Investigation Reveals Fujitsu Receives £3.4 Billion in Contracts Despite Scandal
Contracts Amid Controversy
Members of Parliament have disclosed that Fujitsu secured contracts worth £3.4 billion from Treasury-linked organizations since 2019. This revelation comes in light of the firm’s involvement in the Post Office scandal. Despite issues with its Horizon software, Fujitsu received £1.4 billion in deals after the High Court identified bugs and errors in the system. Surprisingly, only one organization contemplated terminating contracts with Fujitsu but ultimately opted to continue the partnership.
Treasury Committee’s Inquiry
The Commons Treasury Committee recently reached out to various entities, including HM Revenue and Customs (HMRC), the Financial Conduct Authority (FCA), and the Bank of England (BoE), seeking clarifications on their engagements with Fujitsu. These organizations have collectively allocated substantial funds to Fujitsu Services Ltd or Fujitsu Global-owned entities.
Details on Contracts
HMRC granted eight contracts amounting to £1.39 billion post the 2019 ruling, with six additional contracts from before 2019 that have since expired. The FCA retained agreements valued at approximately £630 million from 2007, even after the High Court’s verdict, and still maintains six contracts totalling about £9 million. Meanwhile, the Bank of England reported a single contract worth £417,000 that concluded in August 2020.
Response to Scandal
Amid inquiries regarding Fujitsu’s involvement in the Horizon scandal, organizations were questioned if the controversy influenced their decision-making processes. Notably, the FCA was the sole entity to consider terminating a contract due to poor performance but ultimately chose to continue the collaboration.
Escalating Scrutiny
The scrutiny surrounding Fujitsu, the Government, and the Post Office has heightened following the depiction of events on ITV’s Mr Bates Vs The Post Office. A statutory inquiry is underway to unveil the complete narrative, investigating the roles of various organizations involved.
Commitments and Apologies
In response to the scandal’s aftermath, Fujitsu has expressed deep regret and pledged to contribute towards compensating individuals wrongfully convicted. The Government emphasized the severity of the situation, underscoring the need to prevent similar incidents in the future. As part of their accountability measures, Fujitsu halted bidding for new Government contracts until the inquiry is finalized.
FAQs
What is the total value of contracts Fujitsu received from Treasury-linked organizations since 2019?
Fujitsu secured contracts worth £3.4 billion from Treasury-linked organizations since 2019.
Which organization considered terminating a contract with Fujitsu?
The Financial Conduct Authority (FCA) contemplated winding down a contract with Fujitsu due to poor performance but decided to continue their services.
What was the High Court’s ruling regarding Fujitsu’s Horizon software?
The High Court ruled in 2019 that Fujitsu’s Horizon software contained “bugs, errors, and defects,” leading to a widespread miscarriage of justice.
What measures has Fujitsu taken in response to the scandal?
Fujitsu has offered its “deepest apologies” to victims of the scandal and committed to contributing towards compensation for those wrongly convicted.
How is the Government addressing the Horizon scandal?
The Government has initiated a statutory inquiry to investigate the Horizon scandal comprehensively and ensure accountability.
