Lord Bellingham: ‘Why is Fujitsu still bidding for government contracts?’

As a former MP, I represented several sub-postmasters whose lives were utterly destroyed by false accusations stemming from Fujitsu’s faulty Horizon system. One constituent, in particular, was forced to leave our community in disgrace, his family’s reputation and livelihood in tatters. Now, years later, we know he was completely innocent. Yet, the scars remain.

All of this happened while Fujitsu was aware of the system’s flaws — yet chose silence. Putting profit before accountability. And although the government has commendably paid out £964 million in redress to over 6,800 claimants, a critical question lingers: Why has Fujitsu — the company at the heart of this disaster — failed to contribute a single penny of compensation to the victims?

In a twisted irony, they have spent £27 million on ‘reputation management’ in the wake of this scandal — putting profit and corporate image over justice and accountability.

What troubles me, is the disconnect between words and actions, hidden behind a façade of clever spin. In January 2024, Fujitsu Europe CEO, Paul Patterson made what appeared to be a clear commitment. He stated the company would “not bid for new government contracts while the inquiry continues”, acknowledging in his public testimony to the Post Office Horizon Inquiry that they needed to “rebuild trust”. This commitment was reinforced in correspondence with the Government’s Chief Commercial Officer, stating “there is no limitation or caveat on our intention.”

And yet, that pledge has been quietly abandoned. In March 2024, the company was awarded a £125 million contract from Northern Ireland’s Department of Finance. Leaked documents later revealed that Fujitsu was actively targeting £1.3 billion worth of UK government contracts over a 12-month period – all while briefing staff on how to navigate around their own self-imposed bidding freeze.

Meanwhile, Fujitsu remains central to the Trader Support Service (TSS), which supports businesses navigating post-Brexit customs between Great Britain and Northern Ireland. Worse still, they are currently rebidding to run this crucial service, which underpins the movement of £13.7 billion worth of goods. We can, and must, do better than continuing to award contracts to organisations with a proven history of deploying flawed large-scale IT systems.

When providers associated with serious failures continue to receive contracts, it undermines public confidence in the entire system. Trust, once broken with the British public, is difficult to rebuild – and this applies both to individual companies and to government procurement processes more broadly.

I believe we need a thoughtful reconsideration of how we approach public procurement in cases like this. Rather than continuing business as usual, the government could implement a formal framework to prevent companies under active investigation – or with unresolved financial redress obligations – from bidding for new contracts. The TSS is a perfect example of this concern.

The Horizon Inquiry is doing vital work, and I hope it delivers the justice that victims have long awaited. But in the meantime, ministers must ask themselves: does Fujitsu’s continued involvement in delivering our most critical public services serve the national interest — or betray it?

The integrity of our institutions and public services and the trust of our citizens, depends on the answer.

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