Post Office IT’s rush for discount led to mistakes and delays

'Buying this equipment was probably the wrong decision’

An inquiry has found a rush to secure a 5% discount led to “costly mistakes” at the Post Office.

A public inquiry into the Post Office IT scandal has found that the Post Office's IT department rushed into a tech hardware purchase to secure 5% discount, leading to costly mistakes and potential delays in the New Branch IT (NBIT) project.

During the latest hearing Saf Ismail, a non-executive Post Office director, criticised the IT department, executives and procurement teams for their "costly mistakes" in the hardware procurement process.

"We were told at the board that we had to decide on the purchase of this hardware [and] we had to authorise it in late 2023. At the time, we were told we were getting a very good deal, hence why we did it at a 5% discount," Ismail said, according to Computer Weekly.

The NBIT project, announced in May 2022 with the aim to replace the controversial Horizon system by 2025, has been plagued by problems.

The Post Office has already requested an additional £1 billion in public funding to get the project back on track.

Ismail revealed that the decision to purchase the hardware was made in late 2023, despite concerns about its compatibility with existing branch setups.

Errors in the NBIT project have resulted in thousands of units of point-of-sale equipment sitting unused in a warehouse.

Due to these issues, Post Office may need to extend its contract with Fujitsu. Sub-postmasters could also face significant disruptions, including costly renovations to accommodate the new hardware and potential shortages of replacement parts as support deadlines for existing equipment approach.

Ismail placed blame squarely on "individuals in the IT department and the wider executives," as well as Post Office procurement teams, for the situation.

"It is clear we are not ready, we will not be ready for NBIT for two to three years, hence why buying this equipment was probably the wrong decision," said Ismail.

When asked to respond to the allegation, a Post Office spokesperson declined to comment, stating that the individuals involved would be providing evidence to the inquiry.

xzThe faulty Horizon system was responsible for wrongly prosecuting over 900 sub-postmasters for financial discrepancies between 1999 and 2015. The software made it appear that money was missing from branches.

The repercussions were severe, with some individuals facing imprisonment, financial ruin, and some even losing their lives.

A version of the system still remains in use in UK Post Offices.

Earlier this week, a new survey carried out by the YouGov revealed that the troubled Horizon IT system is still causing significant financial problems for sub-postmasters.

Almost 70% of sub-postmasters reported experiencing "unexplained discrepancies" on the Horizon system since January 2020. This suggests that faults persist in the newer versions of the accounting system, despite the widespread recognition of its flaws and the ongoing public inquiry.

The survey found that the most common problems reported included screen freezes, loss of connection and unexplained discrepancies in their accounts.

In addition to ongoing issues with the Horizon system, the survey also found that many sub-postmasters are dissatisfied with the compensation payouts offered through the Horizon Shortfall Scheme.

The process was deemed too long and lacking in transparency, with many applicants reporting difficulty in understanding the scheme and receiving contact from case assessors.