Fujitsu suspends all bids for government contracts after Post Office scandal

Under-fire tech firm Fujitsu has agreed to suspend all bids for public contracts until the conclusion of the inquiry into the Post Office scandal.

Cabinet Office minister Alex Burghart confirmed the move to MPs this morning following intense criticism of the Japanese company over its involvement in what is believed to be the largest miscarriage of justice in UK history.

At least 700 sub-postmasters were wrongly convicted of criminal offences including theft and false accounting due to Fujitsu’s faulty accounting system Horizon.

Many more lost large amounts of money or went bankrupt. The scandal has been linked to at least four suicides.

Fujitsu Europe boss Paul Patterson has agreed that the firm would contribute towards compensation costs which could reach as much as £1billion.

i revealed last week that Fujitsu was granted access to a VIP lane for £700m worth of government contracts despite the Post Office scandal.

Speaking in the Commons, Mr Burghart said the Japanese company has written to the Cabinet Office to say it is “voluntarily” undertaking not to bid for Government contracts, unless asked.

He was responding to Conservative former cabinet minister Sir David Davis, who called for companies like Fujitsu to be blocked from bidding for future Government contracts on the basis of having “terrible track records”.

Sir David told the Commons: “This week it’s been reported the Government tried to block Fujitsu from bidding for future contracts on the basis of woeful performance in previous contracts.

“Government lawyers advised this could not be done. They are wrong. So, will the Government give further serious thought to blocking large companies like Fujitsu with terrible track records from bidding for future contracts, and if absolutely necessary legislate accordingly?”

Mr Burghart also told Sir David: “There are clearly defined circumstances in which the Government can exclude companies from bidding for contracts.”

Fujitsu’s involvement with the public sector is significant, both in terms of services provided and the company’s UK revenues.

Since 2012, the public sector as a whole has awarded Fujitsu almost 200 contracts worth a combined total of £6.8 billion, according to analysts Tussell.

About 43 of those contracts are still in operation, worth a total of £3.6 billion, including the contract for the Post Office Horizon system, and multiple Government departments including the Home Office, the Foreign Office, Defra and the Ministry of Defence.

Earlier this month the Prime Minister’s spokesman did not say the Government would stop awarding contracts to the company if it was found to be at fault.

They said only that companies’ conduct was “in general” considered as part of the procurement process.

Earlier this week, Fujitsu Europe director Paul Patterson apologised to subpostmasters who had been wrongly convicted as a result of problems within the Horizon software.

He conceded there were “bugs and errors in the system” and said Fujitsu had a “moral obligation” to contribute towards compensation.