The Post Office has announced plans to finally sever ties with Fujitsu, the Japanese technology giant at the centre of the Horizon IT scandal. New contracts worth a combined £491 million have been awarded to replace the controversial system.
New Contracts Awarded
Outsourcing firm Accenture has secured a "walk in and take over" deal to operate Horizon, while One View Commerce will develop a replacement system. The Accenture contract, expected to be signed next month, is initially for five years with a possible two-year extension, valued at £322 million including VAT. The One View Commerce deal could run until 2038, costing £169.2 million.
Despite this, Fujitsu will remain involved until its expected exit next year, continuing to be paid during the transition.
Background of the Scandal
Fujitsu’s Horizon system was at the heart of one of Britain’s biggest miscarriages of justice, leading to hundreds of subpostmasters being wrongly convicted of theft and fraud. Despite widespread criticism, the Post Office granted Fujitsu multiple lucrative contract extensions.
Hero postmaster Sir Alan Bates, who campaigned for justice and was portrayed in the ITV drama Mr Bates vs The Post Office, previously called the extensions "absolute madness." He questioned why Fujitsu continued to receive taxpayer money while victims awaited compensation.
Post Office's Statement
Post Office boss Neil Brocklehurst said in October: "I’d love to get off Horizon tomorrow but it isn’t just one thing, it is about 80 different odd bits of technology plumbed together. This is very, very complex, we have to move at the appropriate pace."
The Post Office claims the new contracts will "transform technology" across its branch network. Accenture will work with the Post Office and Fujitsu to transfer knowledge and key personnel before taking over operations.
An earlier attempt to replace Horizon with an IBM system failed in 2016, costing £40 million. Since 1999, the Post Office has spent £2.5 billion on Fujitsu contracts, including over £600 million on extensions since 2012.
Sir Alan Bates remarked: "Haven’t we got any other software companies in Britain? I do wonder at times what Fujitsu has to hold a gun to the government’s head all the time to get these contracts." He added that it was for Fujitsu's conscience whether it continued taking money and that morally it should contribute to compensation.
