UK (Parliament Politics Magazine) – The British government has extended a £67m post-Brexit deal with Fujitsu, despite its involvement in the Horizon IT scandal, sparking concerns from campaigners.
As reported by the Independent, a £67 million cost will fall on taxpayers as the government renewed a post-Brexit contract with Fujitsu, the firm linked to the Horizon IT matter.
Why was Fujitsu’s contract renewed even after the Horizon scandal?
His Majesty’s Revenue and Customs(HMRC) has granted a one-year extension for Fujitsu to manage its Trader Support Service, despite the firm’s involvement in the Horizon issue, which was responsible for the faulty software that led to the wrongful convictions of hundreds of subpostmasters.
Documents obtained by the media reveal that the contract extension, valued at £66.8 million, was approved on the basis that it is a renewal, not a new agreement.
Last January, Fujitsu refrained from bidding for government contracts following scrutiny over its involvement in the Horizon Post Office scandal.
What are the views of the postmaster’s campaigner about Fujitsu’s extension?
An advocate for wrongly convicted sub-postmasters, Lord Arbuthnot, condemned the government’s move, calling it “deeply concerning” and warned about its wider implications.
He stated,
“First, it sends Fujitsu and other companies the message that the country doesn’t care about the unethical behaviour shown by Fujitsu in the Post Office scandal,
adding,
“Second, it weakens the government’s bargaining power in requiring Fujitsu to bear a substantial portion of the cost of that scandal.”
Referring to the impact of the giving extension, Mr Arbuthnot continued,
“Third, it implies that the government relies too heavily on Fujitsu. Fourth, it overlooks the possibility that Fujitsu’s performance on this contract might be just as flawed as it was with the Post Office.”
What was HMRC’s stance on granting an extension to Fujitsu?
According to HMRC, the UK’s tax, payments, and customs authority, the extension was essential to allow for a stabilisation phase while the new trading protocols under the Windsor Framework are implemented.
The tax authority has pledged to run a procurement process in the coming months to identify a new provider for Fujitsu to deliver the service starting this year.
The service introduced in January 2020 to assist companies with the Northern Ireland Protocol was later substituted by Rishi Sunak‘s leadership in 2023.
The company has previously secured almost £6.8 billion across nearly 200 public sector contracts, including 11 HMRC contracts totalling over £1 billion and 12 deals with the Ministry of Defence valued at £582 million.
HMRC argued that due to “technical and economic reasons,” appointing a new contractor in 2024 was not feasible, raising concerns of “significant inconvenience.”
Is Brexit red tape a £500m waste of taxpayers’ money?
James MacCleary, the Liberal Democrat EU spokesperson, slammed the £500 million Brexit red tape costs, calling it a “staggering waste of money.”
He stated,
“Businesses have been forced to navigate a bureaucratic nightmare, while the government scrambles to extend contracts to fix the mess.”
Mr MacCleary said rather than spending hundreds of millions on consultancy fees, the government should prioritize negotiating a new customs agreement with the EU to provide real support for businesses.
What did the spokespersons from HMRC and Fujitsu say about the contract extension?
A representative from the HMRC stated,
“This service has provided vital support for almost 60,000 traders moving goods under the Windsor Framework, enabling them to follow the correct processes without the need to purchase specialist software, saving them significant time and money.”
A spokesperson from Fujitsu said,
“We are working with the British Government to ensure we adhere to the voluntary restrictions we put in place regarding bidding for new contracts while the Post Office Inquiry is ongoing.”
He continued that our firm extends sincere apologies to the sub-postmasters and their families.
What is the Post Office Horizon scandal?
The Horizon computer system provided false information, leading to the wrongful prosecution of over 900 sub-postmasters for theft, a scandal now described as Britain’s most significant case of judicial error.
Between 1999 and 2015, the Post Office prosecuted 700 people, with 283 additional cases brought by the CPS and other agencies.
Numerous sub-postmasters were jailed for misleading accounting and theft, and many were financially destroyed.