Fujitsu in the firing line as Post Office scandal  intensifies

Welcome to Wednesday’s Early Edition from i.

When it was rolled out in 1999, the IT system Horizon was the biggest non-military project in Europe, costing more than £1bn to install in post offices around the country. The idea behind it was to replace the paper-based tills in post office with an electronic touchscreen, meaning workers could key in sales, as well as have accounting and stocktaking automated. But as we now know, that did not go at all to plan. The software, developed by the Japanese IT firm Fujitsu, was riddled with problems causing it to falsely deliver shortfalls. Now, amid the calls for justice for postmasters wrongly prosecuted and to examine more deeply how the scandal unfolded, the spotlight has turned on the company, which has so far not faced any repercussions for its involvement. Two former Fujitsu experts are being investigated by the Met Police, but no arrests have been made. Since 2012, Fujitsu has been awarded a long list of government contracts worth hundreds of millions of pounds. Should that continue, and might the firm have to pay compensation to victims? We’ll take a look, after the headlines.  

Today’s news, and why it matters

 Tory right-wing rebel MPs hoping to amend Rishi Sunak’s Rwanda Bill next week have become embroiled in bitter infighting, i can reveal. There were real fears that the PM’s premiership was under threat last month because of the concerns about the asylum legislation as right-wing Conservative factions flexed their muscles.

Swimmers say they feel “frustrated” and “anxious” after being warned to avoid their local beach following an incident that saw up to 240 tankers of sewage per day being dumped at an overflowing pumping station nearby. One swimming group said there had been a notable decline in the number of people attending its weekly sessions, as locals fear that millions of litres of raw sewage may have been pumped into the water at the popular Devon beach resort.

NHS letters, banking paperwork and Christmas cards sent in early December have still not arrived as a result of continuing Royal Mail delays. Industry sources have told i they were made to prioritise parcels over letters in the run-up to the holiday, meaning some letters sent in early December arrived just before New Year – while others are still waiting.

A family facing eviction after reporting mould to their landlord is among groups calling for tenancy reforms to tackle hazardous housing to be extended to private renters. Francesca Cambridge Mallen, 44, a PhD student from Shropshire, told i her family have been left “essentially homeless” after being served a so-called “no-fault” eviction notice to vacate the home they have lived in for five years.

The cost of pandemic spending and support during the energy crisis pushed taxes so high that they cannot be brought down “in one go,” Jeremy Hunt has suggested. The Chancellor said it was not possible to bring the tax burden to “pre-pandemic” levels quickly but he would “make a start”.

Sinéad O’Connor “died of natural causes” last year, a coroner has confirmed. The Dublin-born singer was found unresponsive at her south London home on 26 July last year and was pronounced dead at the age of 56. No medical cause of death was given at the time.

3 questions over Fujitsu and the Post Office scandal:

What’s the row over government contracts? There are mounting questions about why the Government has not severed ties with the firm in the wake of the scandal. This week i has revealed how the firm has continued to secure contracts for the Government despite it being embroiled in the scandal. The firm was granted access to priority lanes to win hundreds of millions of pounds in Government contracts. According to data shared with i by analytics firm Tussell, Fujitsu has won nearly £700m worth of contracts using the priority procurement system since 2015, including one with HMRC that was valued at £500m. Some of the deals were extended as recently as a few months ago. On Monday, i also revealed that the Environment Agency extended the Japanese IT firm’s contract to provide England’s flood alerts system at the end of December. Fujitsu has a £19.5 million deal to run the flood defence warnings system until September 2025. Campaigners and experts say the firm should be excluded from the Government’s lists of preferred suppliers. The Government, which has previously said all contacts were awarded within regulations, is also facing pressure from MPs to stop handing out contracts to the company. Read more on that, here. But as Richard Vaughan explains here, untangling the firm from the running of government systems would prove hugely challenging, and costly. It would also be a big headache for whichever political party wins at the next General Election. 

What could happen now? Next week bosses at Fujitsu will answer questions from MPs at the Business and Trade Committee. However the PM has suggested that any changes will not happen until the public inquiry concludes. Yesterday Rishi Sunak’s official spokesman said: “In general, we consider companies’ conduct as part of the formal procurement process. So, once the full facts have been established by the inquiry, we will make further judgments, but it’s important we allow that process to take place.” Officials are understood to be drawing up options to exclude Fujitsu from contracts in future, as well as looking at existing work the firm does for the Government. A Government source said: “If the inquiry does find anything untoward, then we will be very robust.” No 10 said the firm will be “held accountable” legally or financially if the public inquiry rules that it failed in its role in the Horizon scandal. Fujitsu has said it is sorry for its role in sub-postmasters’ suffering. Read more here.

Could it pay compensation? As Cahal Milmo points out here, the company’s latest extension to its IT support for two Post Office data centres until 2025 is worth £36m alone – £3.6m more than the total sum so far paid in compensation by the Post Office to wronged sub-postmasters and mistresses. Ministers are said to be considering whether to demand the tech firm pay out millions of pounds in compensation. Around £138m has been paid to victims so far, with the bill covered by the taxpayer. Hundreds of others are still waiting. Work and pensions secretary, Mel Stride, said it was important to see what the inquiry decides “in terms of culpability”. He told Times Radio: “Now in the event that it determines that Fujitsu made a number of knowing mistakes and caused all sorts of problems that wouldn’t have otherwise have occurred, then that would strike me as being quite a serious situation and I would expect some very serious consequences.” Speaking to Sky News he also said: “I think it is certainly the case where we are not going to be in a position where we are saying: ‘Oh it’s the taxpayer who is picking up the bill here.’”

Around the world

 Armed men wearing masks burst onto set of a TV show in Ecuador during a live broadcast. Footage shows the gunmen, who wore balaclavas and wielded large guns, ordering staff at the TC station in Guayaquil to lie and sit on the floor, as shots and yelling were heard.

Israel may have acted in breach of international law in the Gaza conflict, Lord Cameron has suggested. The Foreign Secretary said he was “worried” that Israeli military action against Hamas, which has been criticised amid a reported civilian death toll in excess of 23,000, may have broken international obligations.

Jeffrey Epstein refused to answer questions over whether he attempted to blackmail Prince Andrew after his alleged sexual encounter with Virginia Giuffre, court documents have revealed. Epstein declined to answer almost all of the questions he was asked during his interview under oath as part of Ms Giuffre’s civil claim against disgraced British socialite Ghislaine Maxwell.

Spain will make wearing masks in hospitals and health centres compulsory from Wednesday as cases of flu and Covid soar across Europe. The continent is facing a “tridemic” of flu, respiratory viruses and Covid-19 after the festive season.

Scientists have developed a simple DNA test that can identify 18 early-stage cancers which could represent a medical “gamechanger”. US researchers have designed a test that analyses proteins in the blood and detect cancers representing all main organs in the human body.

A ‘tunnel girl’ has perplexed neighbours in Virginia by digging 22ft under her own home. Known as Kala on TikTok, she has been constructing a subterranean lair under her home — causing a mix of intrigue and concern.

 Watch out for…

 movements to overturn wrongful convictions during the Post Office scandal, as the Horizon Compensation Advisory Board meets today. 

 Thoughts for the day

 Paula Vennells has become a scapegoat. The return of her CBE is nothing but a sideshow, argues Simon Kelner.

Mr Bates vs The Post Office proves Parliament can still be a force for good. The real heroes of this scandal are its victims, but Tory and Labour backbenchers have played a key role in getting justice, writes Paul Waugh.

I’m a parenting expert – and I’ve had it with ‘gentle parenting’. Perfection really doesn’t exist – do what feels right for you and your children, advises Kirsty Ketley.

Culture Break

 ‘Schools should teach boys to talk about mental health’. Jon Pointing, star of Bafta-nominated Big Boys, talks to Emily Baker about male mental health, being accepted by the LGBTQ+ community and today’s toxic comedy discourse.

The Big Read

 I’m having a baby with my gay best friend – women don’t need to settle for bad romances. Single Nicola Slawson spent her thirties worrying about being childless and dating as a way to meet a potential co-parent. Until she asked her gay best friend instead.

Sport

 Sancho’s temporary exit is more proof Man Utd are not convinced by Ten Hag. The forward’s loan to Borussia Dortmund suggests he shouldn’t rule out Ten Hag being sacked – Ineos clearly haven’t, writes Kevin Garside.

Something to brighten your day

 I’m a spine surgeon – here’s what I never do (including looking at Whatsapp). Everything from looking at your phone to sitting on a bendy office chair can exacerbate back pain, says surgeon Mo Akmal.