Post Office Horizon scandal victim Seema Misra OBE has slammed the government for paying "£40 million" to extend its contract with Fujitsu to continue using the controversial Horizon IT software.
Speaking with Asian Trader, Misra questioned the government's real motive behind the contract renewal despite Horizon being in the centre of what is considered as Britain's biggest miscarriage of justice.
"The real question here is what does the government get this time to renew the contract with Fujitsu? They must have got something last time. They knew the system was flawed but they still brought the IT system into Post Office last time too.
"So what incentive or how much amount they are being offered this time that they have agreed to renew contract with Fujitsu to continue using Horizon in the Post Office branches?," asked the campaigner, who has recently been named OBE in the New Year honour's list for her unwavering commitment to justice.
At least 700 subpostmasters and subpostmistresses were wrongly prosecuted for apparent financial shortfalls which were actually caused by faults in the accounting software Horizon created by Fujitsu.
Accused of stealing £70,000 from her Post Office branch in West Byfleet, Surrey, Misra was sent to jail in 2010. She was eight weeks pregnant at the time. Her conviction was quashed in April 2021.
Last year during a hearing of Post Office Horizon scandal public enquiry, Misra rejected an apology from former Fujitsu engineer Gareth Jenkins, who was pivotal in helping the Post Office defend the faulty computer software system in criminal and civil cases.
At Misra's trial in 2010, he failed to tell the court about a bug in the software that could have undermined the case against her.
Despite the mountain of evidences that, inews revealed last week that the Post Office has renewed its contract with Fujitsu to continue using Horizon until March 2026 at a cost of £40.8 million.
The Post Office previously said it planned to replace Horizon with “new branch technology” but would maintain the old IT software until the new technology is developed.
Seema Misra (L-4) and Vijay Parekh (L-5) receive Ramniklal Solanki Editor’s Award at the 2024 Asian Trader Awards Asian Trader Awards
Responding to Fujitsu’s new contract, Horizon scandal campaigner Christopher Head OBE added, “We understand that in order to transition to a new system you have to maintain the old one until you get to the point that you are satisfied.
"In this circumstance, with the Post Office, you’d be more cautious given what’s happened with the previous system.”
Janet Skinner, aformer subpostmistress from Hull, was handed a nine-month sentence for theft in 2007 after £59,000 appeared to be missing from her Post Office branch.
She served three months of that sentence before being released with an electronic tag but was hospitalised in 2008 with a stress-related illness.
Commenting on the extension of Fujitsu’s contract, Skinner told inews, “It’s an insult. It’s like they are rewarding them for their bad behaviour.
“There needs to be accountability and accountability is not awarding contracts to a company that has been at the forefront of this scandal.
“It just infuriates me. Absolutely infuriates me. God knows what the other postmasters are feeling. It’s just like being kicked in the teeth.”
Post Office Horizon scandal victims have slammed Post Office for paying "£40 million" to extend its contract with Fujitsu to continue using the controversial Horizon IT software, as revealed in a recent report.
At least 900 subpostmasters and subpostmistresses were wrongly prosecuted for apparent financial shortfalls caused by faults in the accounting software, in what has been described as one of the UK’s biggest miscarriages of justice.
Despite that, data revealed by inews shows the Post Office has renewed its contract with Fujitsu to continue using Horizon until March 2026 at a cost of £40.8m.
The Post Office previously said it planned to replace Horizon with “new branch technology” but would maintain the old IT software until the new technology is developed.
Christopher Head OBE, a former sub postmaster, was sued by the Post Office in the civil courts for more than £80,000 that was supposedly missing from his branch. He has not yet been compensated.
Responding to Fujitsu’s new contract, he added, “We understand that in order to transition to a new system you have to maintain the old one until you get to the point that you are satisfied.
"In this circumstance, with the Post Office, you’d be more cautious given what’s happened with the previous system.”
Janet Skinner, aformer subpostmistress from Hull, was handed a nine-month sentence for theft in 2007 after £59,000 appeared to be missing from her Post Office branch.
She served three months of that sentence before being released with an electronic tag but was hospitalised in 2008 with a stress-related illness.
Commenting on the extension of Fujitsu’s contract, Skinner told inews, “It’s an insult. It’s like they are rewarding them for their bad behaviour.
“There needs to be accountability and accountability is not awarding contracts to a company that has been at the forefront of this scandal.
“It just infuriates me. Absolutely infuriates me. God knows what the other postmasters are feeling. It’s just like being kicked in the teeth.”
A spokesperson for the Post Office said that, while it is too early to speculate about when Horizon will be replaced, it is “committed to delivering a lower-risk, better-value new branch IT for postmasters”.
A Fujitsu spokesperson said, “We are focused on supporting the Post Office in their plans for a new service delivery model, so branches can continue to deliver key services to the public.”
Approximately £663 million has been paid to over 4,300 claimants across four schemes for the victims of Post Office Horizon scandal. This is up from £594 million figure reported last month.
Sharing the latest report, Department for Business and Trade (DBT) stated on Friday (7) that £315 million has been paid under Horizon Shortfall Scheme (HSS), including interim payments while £128 m has been paid under Group Litigation Order (GLO) Scheme.
£65 million has been paid under Overturned Convictions (OC) and £156 million has been paid under Horizon Convictions Redress Scheme (HCRS).
Initial interim payments are available to eligible postmasters upon getting their conviction overturned on the grounds that it was reliant on Horizon evidence, states the department.
As of 31 October 2024, all 111 eligible claimants have either reached full and final settlement or received a minimum of £200,000 through interim payments.
From these 111, Post Office Ltd has received 82 full and final claims.
Of these 82 claims, 66 have been paid and a further 7 have received offers. The remaining 9 are awaiting offers from Post Office Ltd.
"Post Office Ltd has been progressing non-pecuniary settlements first to get money to postmasters as quickly as possible, which means a number of partial settlements have been reached in addition to the full and final settlements published here. Post Office Ltd continues to work on finalising these outstanding claims," states the department.
Under GLO scheme, the department had received 408 completed claims from eligible GLO postmasters. 252 have been paid and a further five have accepted offers and are awaiting payment. Another 126 postmasters have received offers from DBT and the remaining 24 are awaiting offers.
In HSS, £315 million has been paid including £33.3 million in interim payments to original claimants and £7.9 million in interim payments to late applications.
DBT informs, "On 13 March 2024, the government announced that all eligible HSS claimants would be entitled to a fixed sum award of £75,000 to settle their claim.
Post Office Ltd continues to make top-up payments to claimants who had previously accepted a full and final offer below the value of £75,000, to bring their total redress to £75,000."
The Post Office Horizon scandal saw more than 900 sub postmasters being prosecuted between 1999 and 2015 after faulty Horizon accounting software made it appear that money was missing from their accounts.
Hundreds are still awaiting compensation despite the previous Conservative government announcing that those who have had convictions quashed are eligible for £600,000 payouts.
Post office Horizon scandal campaigners have slammed the government for extending a post-Brexit contract worth £67 million with the controversial firm Fujitsu.
A recent report by The Independent stated that His Majesty’s Revenue and Customs (HMRC) has granted a year-long extension to Fujitsu, which developed the faulty software leading to the wrongful prosecution of hundreds of subpostmasters for theft and false accounting, to run its Trader Support Service (TSS),
Fujitsu ruled itself out of bidding for government contracts in January last year due to its role in the Horizon Post Office scandal.
But the extension, worth £66.8m and detailed in documents seen by the media house, was approved because it is not a new contract.
Former sub post-mistress Seem Misra OBE has criticised the government over this move.
She stated on X, "We (SPMR) couldn't work due to wrongful convictions, yet Fujitsu—whose system destroyed lives—is expanding. What have they offered this time to stay quiet? Where's the justice?"
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Lord Arbuthnot, who campaigned for wrongly convicted sub postmasters, said it was “a worrying decision by the government on several levels”.
“First, it sends Fujitsu and other companies the message that the country doesn’t care about the unethical behaviour shown by Fujitsu in the Post Office scandal.
“Second, it weakens the government’s bargaining power in requiring Fujitsu to bear a substantial portion of the cost of that scandal.
“Third, it suggests that the government is uncomfortably dependent on Fujitsu. And fourth, it ignores the fact that Fujitsu’s capability on this contract may be no better than their Post Office capability," he told The Independent.
“Why didn’t they start work earlier on finding someone else?”
Meanwhile, HMRC said the extension was needed in order to “ensure a period of stabilisation” while new trading arrangements come into place under the Windsor Framework.
It has promised to run a procurement process in the coming months to replace Fujitsu in delivering the service.
Fujitsu in the past has won nearly £6.8bn in nearly 200 contracts from the public sector, including 11 for HMRC to the value of over £1bn, and 12 contracts with the Ministry of Defence for £582m.
Post Office’s new Consultative Council has met for the first time last week on Jan 27 to inform the strategic direction of the organisation. Its remit is to provide a representative postmaster perspective on strategy, culture, funding and governance.
Going forward, the Council agenda could include topics such as banking hubs, the Government’s Green Paper on the future of Post Office, technology strategy or new product development.
The ’New Deal for Postmasters’, announced in November 2024, sets out an ambition to deliver a quarter of a billion pounds boost to postmaster and strategic partner income by 2030.
These improvements to remuneration are subject to funding discussions with government which are positive and ongoing. Postmasters and strategic partners benefited from the first of these increased payments with a £20 million boost to their pay packets in December.
The Council, chaired by Postmaster Non-Executive Director Brian Smith, will meet regularly ahead of Post Office board meetings and a summary of discussions will be published for postmasters to access in a new regular newsletter from the postmaster non-executive directors.
It is comprised of groups representing postmasters, including the National Federation of Sub-Postmasters, Communication Workers Union, Voice of the Postmaster, alongside Post Office's postmaster non-executive directors and Post Office leadership.
Brian Smith is the postmaster for Freefield Post Office on the Shetland Islands and has run the branch for 19 years. Brian was appointed to the Post Office board as a non-executive director in December 2024 and chairs the Consultative Council. Brian Smith said:
“The Consultative Council is an example of the changes which are being implemented at Post Office following evidence heard at the Public Inquiry about the need to embed the postmaster voice throughout the organisation – from the board to the frontline. I am looking forward to bringing almost two decades of experience running a post office to the Council.”
It is one of several changes made or in development at Post Office to ensure the postmaster voice is clearly heard, considered and responded to at every level:
A panel of postmasters will be convened to review operational policies and practice on complex issues and provides feedback and challenge on how they can be improved.
A new wellbeing initiative launched in October 2024 is the result of a collaborative project with the National Federation of Postmasters, Voice of the Postmaster and Post Office colleagues, focused on providing urgent professional care and subject matter expertise on topics ranging from branch security to customer behaviours.
Since August 2024, thirteen regional listening forums have taken place across the UK, with 318 postmasters in attendance, covering a broad range of topics.
The Postmaster Conference, taking place in March, is being co-designed and hosted by postmasters for the first time.
Fujitsu created the Horizon IT system that resulted in some 700 local Post Office managers being wrongly convicted for theft and false accounting between 1999 and 2005. (Photo by ADRIAN DENNIS/AFP via Getty Images)
A former sub post master, who was forced to remortgage his house as he lost thousands of pounds in the Post Office Horizon scandal, said more should be done to compensate the families of the sub-postmasters who also suffered.
Alun Lloyd Jones, 78, from Llanfarian, Ceredigion, has reached a settlement with the company.
Jones, who faced an 18 year battle before receiving compensation, said it was important to consider the impact the scandal has had on the families of sub-postmasters.
"Some have died, some have suffered so that their health has broken and some have had divorces because of the hellish pressure," he said.
"You can never get enough money to compensate… some have lost their businesses, their houses and so on and the experience has destroyed families. I feel very strongly that these families should also be considered," he said.
Jones' troubles began in 1998 when he decided to take over his local post office in Llanfarian, near Aberystwyth.
A year later, the Horizon computer system was introduced in all British post offices, to monitor stock and accounts digitally.
Like many other sub-postmasters, Jones started having trouble with the new system in the office in Llanfarian and another he was responsible for in Blaenplwyf.
After the Horizon system showed that nearly £20,000 had disappeared from his accounts, in 2007 he called the police and the Post Office.
Jones told BBC, "I said I need to be audited now. And they were shocked. 'It's not you who calls auditors,' they said to me, 'it's for us to come and audit you'.
"They came down, two bullies - you've never seen people like them. They came in and they immediately made up their minds that I was guilty... the boy immediately said to the woman 'suspend him'."
To avoid being prosecuted, and in accordance with the agreement with the Post Office, he had to pay back the money, borrowing from his father-in-law, remortgaging his house, before later closing the post office and shop.
"I had to use credit cards to go from day-to-day, because we didn't have any money - everything had gone back to the post office," he said, adding that he also faced reputational pressures as a county councillor for 31 years.
Jones said he watched ITV drama Mr Bates vs The Post Office from a hospital bed in Llanelli, having suffered a heart attack while on his way to see his accountant to discuss his compensation claim before the deadline passed.
A year later, in mid-January 2025, Jones reached a settlement with the Post Office under the Horizon Deficit Scheme.
However, two of Jones' children, who saw him struggle with Post Office, passed away not knowing he had received compensation for what they went through.
He said his daughter had witnessed all the anxiety, having lived at home with her parents.
"She was forty years old, and died without knowing that her father had finally received some sort of settlement," he said.
More than 900 sub-postmasters were prosecuted for stealing because of incorrect information from the Horizon computer system, in what has been described as the UK's most widespread miscarriage of justice.
The UK government said they were considering whether action was needed to recognise the suffering of families, while the Post Office said they were "working with the government to pay compensation to victims as soon as possible".