Fujitsu may face repayment demand for Post Office Horizon scandal
The scandal saw hundreds of Post Office branch managers wrongly convicted based on flawed evidence from Fujitsu's Horizon accounting system
Justice secretary Alex Chalk has suggested that Japanese technology giant Fujitsu may have to repay the substantial costs incurred in the Post Office scandal if found culpable, increasing pressure on the company behind the faulty Horizon software.
Chalk indicated that if the ongoing statutory inquiry reveals the extent of incompetence as anticipated, ministers would seek proper recompense on behalf of the taxpayers.
The compensation, part of a £1 billion fund allocated by PM Rishi Sunak, aims to address the plight of those wrongly convicted in what has been described as one of the greatest miscarriages of justice in the nation's history.
Chalk acknowledged the imperfect options faced by the government in handling the scandal, expressing concern that some guilty individuals might be exonerated. However, he invoked the legal axiom that it is "better that 10 guilty men escape than one innocent person is made to suffer," emphasising the gravity of the injustice faced by those wrongfully convicted.
Energy secretary Claire Coutinho echoed calls for accountability, emphasising the importance of contributions from those at fault, as an independent inquiry continues its investigations.
"I'd like to see whoever is at fault contribute. That is why we set up an independent inquiry that will report back," Coutinho said.
"Once we've got clear evidence on who is accountable, I think it's really important that they contribute."
The scandal, which spanned from 1999 to 2015, saw hundreds of Post Office branch managers wrongly convicted based on flawed evidence from Fujitsu's Horizon accounting system.
The faulty Horizon software made it appear that money was missing from branches.
The repercussions were severe, with some individuals facing imprisonment, financial ruin, and, tragically, some even losing their lives.
The High Court ruled in 2019 that the software contained "bugs, errors, and defects," leading to wrongful prosecutions of sub-postmasters.
The government has already paid approximately £138 million to over 2,700 claimants through three Post Office compensation schemes.
Sunak recently announced new legislation to overturn convictions of subpostmasters prosecuted by the Post Office.
He also announced upfront payments of £75,000 for sub-postmasters involved in a group legal action and £600,000 for those wrongfully convicted.
However, the total fund could reach £1 billion, pending the outcome of a statutory inquiry into the Horizon IT scandal chaired by retired judge Sir Wyn Williams.
Fujitsu executives are set to answer questions from MPs on the Business and Trade Committee, as well as participate in Sir Wyn Williams' inquiry.
Fujitsu, despite facing criticism, continues to have a lucrative business relationship with the British government, its biggest UK customer, having been awarded contracts totalling nearly £6.8 billion since 2012. Fujitsu also awarded a £2.6 million payoff to its former UK boss in 2020, documents suggest.
The company is set to run the £2.3 billion Horizon system for the Post Office until 2025, with an extension awarded last year at a value of £36 million. However, it could face a ban from further contracts by a Labour government, reports suggest.
The Horizon scandal was unearthed by Computer Weekly in 2009 and has been covered extensively since then, but only really gained political traction with the success of the ITV drama Mr Bates vs the Post Office.