Fujitsu should have shown more "remorse" since failings of Horizon IT system emerged, minister Gareth Thomas has said while claiming that all those who had applied for compensation would have received "80 per cent of the amount" by March 2025.
After an intensive year of testimony and revelations at the public inquiry, Thomas recently suggested more could have been done by Fujitsu since the truth about Horizon emerged.
“I’m surprised Fujitsu haven’t done more to indicate remorse. It was a computer system they developed," The Guardian quoted Thomas as saying.
“I’m glad they’re still working with the Post Office to make sure the current Horizon system [works], which the Post Office is still having to use while a replacement is in development; I’m grateful to them for the fact that they’re continuing to work with us.
“But clearly there were significant failings, or it would appear, at least, that there were significant failings in the computer system. And we’ll obviously wait for Sir Williams to opine in full on that issue.
"I think I’m just surprised that they haven’t … wanted to do more," he said.
At the start of 2024, Fujistu, which is forecast to have earned more than £1.5bn from the Horizon contract by the time it expires in 2025, apologised for the role it had played.
The Japanese company also said it will negotiate a compensation package with the government after the public inquiry led by the former high court judge Sir Wyn Williams has published its report.
Talking about compensation to the victims, Thomas claimed that all those who had applied for compensation would by March next year have received 80 per cent of the amount offered even if the total sum was still under dispute.
“There are a series of complex cases still to be sorted, although we have made a lot of progress in just the five months since we’ve been in government. The amount of compensation that’s been paid out has doubled since we came into office," he said.
The Post Office expects to have paid out more than £650 million in compensation to branch owner-operators by next March, and it has put aside £1bn.
Commenting on the buzz on the future of Post Office model, Thomas expressed his doubts on the proposed idea of mutualisation.
He said, “My instinct is that, one of the ways you transform the culture of an organisation like this is to give more power to those who were treated very badly in the past.
"We’ve got to think through what are the incentives that you build in to the governance of an organisation like the Post Office that really gives postmasters much more of a voice in the key decisions the board of the Post Office has to make going forward.
“Given that the Post Office has got a significant social value in that sense, I don’t think I’m as yet convinced that full mutualisation is the way forward. But how do we ensure postmasters can hold those at the centre more accountable?”
It was reported earlier that the government is looking at the future ownership and structure of the Post Office. The Communication Workers Union has proposed handing it over to branch operators, known as mutualisation.
Fujitsu, the maker of the software behind the wrong conviction of hundreds of sub post masters in Britain's biggest miscarriage of justice, has been asked to make an "interim payment of at least £300 million" to cover the compensation paid to Post Office Horizon scandal.
Labour peer Lord Beamish called on a debate in House of Lords on Thursday (27) on the progress of the Post Office Horizon compensation scheme and of the contribution of Fujitsu to the compensation of victims.
Stating that Fujitsu not only covered up the fact that Horizon system was full of bugs and could be remotely accessed but also took an active part in the prosecution of sub-postmasters, Lord Beamish slammed the Japanese firm for "hiding behind the public inquiry".
"At the public inquiry and the Commons Select Committee, Mr Patterson (Paul Patterson, the director of Fujitsu in the UK) said that he apologised to the sub-postmasters and that Fujitsu would make a contribution to compensate victims.
"As of today, no money has been paid by Fujitsu to victims and this is a company that is still making multimillion-pound profits from government contracts.
"It said that it was not going to bid for new contracts, but what it is doing is extending existing contracts. That is happening at the same time as the taxpayer is paying out nearly £600 million in compensation to victims, and many victims are still waiting for compensation."
Apart from calling on Fujitsu to cough out £300 million as interim payment, Lord Beamish also demanded that the Government should bar Fujitsu from taking part in any future contracts if major change has not taken place.
Conservative peer Lord Arbuthnot of Edrom supported the proposal, noting that while Fujitsu had acknowledged its "moral obligation," it was ultimately the taxpayer who was bearing the financial burden, amounting to hundreds of millions.
He said, "The noble Lord, Lord Beamish, suggested £300 million; £700 million would be less than half the cost that the taxpayer is currently estimated to bear.
"If it does not do that, why should the Government offer it further extensions of its existing contracts, still less grant it new contracts?"
Labour peer Baroness Elliott of Whitburn Bay also expressed her support for the proposal, asserting that it was time for Fujitsu to take responsibility and contribute to the compensation fund.She urged all parties involved to act as swiftly as possible to ensure that all victims of the scandal received the payments they rightfully deserved.Conservative peer Lord Polak emphasized the need for the Government to provide clear and transparent communication to claimants about the claims process, ensuring they understood what to expect and the timeframe involved. He agreed with Lord Beamish’s suggestion of a £300 million contribution from Fujitsu but argued that the company should match the amount already covered by the taxpayer, acknowledging that while it was a significant sum, it was a necessary obligation.
Parliament was told that if the Japanese tech giant was an individual it would be facing years if not decades in jail for its active part in the Horizon IT scandal which saw sub postmasters “maliciously prosecuted”.
The firm continued to enjoy lucrative extensions to government contracts bankrolled by the public while the taxpayer funded payouts to victims of what is believed to be Britain’s biggest miscarriage of justice, Westminster heard.
Hundreds of sub postmasters were wrongly convicted of stealing after Fujitsu’s defective Horizon accounting system made it appear as though money was missing at their branches.
The Post Office also forced at least 4,000 branch managers to pay back cash based on the flawed data. Some victims were sent to prison or financially ruined, others were shunned by their communities, and some took their own lives.
The number of convictions linked to Capture computing software, which was used in Post Office branches in the 1990s before the infamous faulty Horizon system was introduced, has more than doubled in a span of less than three months, revealed a recent report.
21 Capture cases have now been submitted to the Criminal Cases Review Commission (CCRC) for review against eight that were reported in December, according to a recent report by Sky News.
Quite similar on the lines of Horizon Post Office scandal where sub post masters were wrongly convicted due to shortfall, Capture accounting system, used from the early 1990s until 1999, was also responsible for shortfalls which led to several wrongful convictions.
Last year in December, Post Office was asked to urgently review its files and evidence related to Capture so the Criminal Cases Review Commission (CCRC) and the Scottish Criminal Cases Review Commission (SCCRC) can ensure no one was wrongfully convicted of a Horizon-style injustice.
Responding to the independent Kroll report into the software, the business secretary has promised to provide redress for postmasters who suffered losses as a result of Capture.
The government said it will work swiftly with victims to determine its form and scope, alongside eligibility criteria, by Spring 2025.
The government commissioned the independent report following postmasters coming forward publicly in January indicating they had faced detriment due to the Capture system. In its report, Kroll concluded Capture could have created shortfalls.
If the CCRC finds significant new evidence or legal arguments not previously heard before, cases can be referred back to the Court of Appeal.
Apart from Horizon and Capture, a leading postmasters body accuses Ecco+, another pre-Horizon IT system that was introduced to post masters between 1992 and 1999, as likely to faulty due to which hundreds of sub postmasters were prosecuted by the Post Office.
Speaking with Asian Trader last year, Calum Greenhow – Chief Executive Officer at National Federation of Sub Postmasters (NFSP) stated that Ecco+ system that was introduced between 1992 and 1999 also created problems for sub post masters.
Greenhow said, "Apart from Capture that came in pre-Horizon time, there was another one called Ecco+ that was in operation between 1992 to 1999. Within that period, (I have learned just in the last few days) post office brought about 334 prosecutions over an eight-year period."
He added, "We have heard so much about Post Office carrying out prosecutions during the Horizon. The fact is, they carried out prosecutions prior to Horizon as well, to near enough the same number and to the same degree.
"So we're talking about a prosecution regime over a 32-year period, not a 25-year period. Their attitude against sub postmasters and their own staff has been prevalent for well over 30 years," he said.
Keep ReadingShow less
A general view of the Warrington offices of technology company Fujitsu in Warrington, England
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.
A former sub-postmaster who was wrongly convicted amid the Horizon scandal has recently received a £600,000 settlement.
Keith Bell, 76, was a sub-postmaster in Stockton, Teesside, between 1987 and 2002, when he was convicted of false accounting. He had to do 200 hours of community service when he was convicted.
Speaking to BBC, Bell stated that though he feels he could finally do the things he should have done for 20 years, he did not feel entirely vindicated.
"There's parts of my life I'll never be able to have over, but now I've got a chance to do things I haven't been able to do," he said.
"I decided that at my age I wanted to accept the offer that was given to me, I could have appealed for more, but that would have meant the process going on for years."
"Because of that conviction I lost jobs, I was unable to find work that could support my family, basically, and I became bankrupt," he said.
Bell added that he was inspired to fight for compensation by the ITV drama Mr Bates vs The Post Office.
He said, "I never, ever, thought I'd be in a position to challenge the Post Office, I didn't know enough about IT, I didn't have enough legal knowledge, nor did I have the funds to do it - I just decided I needed to put my weight behind the cause."
Last May, the government quashed all convictions which were part of the Post Office scandal.
Bell said the U-turn had been a "huge relief".
He added daily life had been a "struggle" over the past 20 years, but he was very lucky his customers and friends had been "very kind", while he was aware other sub-postmasters had a "terrible time".
Bell had spent years believing he had been at fault for the shortfalls which occurred at his Post Office branch in Stockton-on-Tees.
He had been a sub-postmaster from 1985, and like hundreds of others, began to experience unexplained shortfalls in his accounts after having the Horizon IT system installed in his branch.
He called Post Office helplines but was given little support, so when his books didn’t balance, he’d make up the shortfall himself. He did this firstly from his own savings, then from the proceeds of a house sale, before finally delaying some transactions in desperation to "make the books look right".
When auditors noticed discrepancies and wrongly told him other sub-postmasters had not had issues with Horizon.
He admitted to a charge of false accounting over a shortfall of £3,000 at Teesside Magistrates’ Court in 2002 and was handed a sentence of 200 hours community service. Unable to maintain mortgage payments on the business property, it was repossessed by the bank.