Fujitsu’s roots in government go too deep

More pressure has been heaped on the government to reconsider its work with Fujitsu, but despite the supplier’s involvement in the Post Office scandal, its deep roots mean it maintains its grip on the UK public sector.

Recent Computer Weekly investigations have revealed conflict-of-interest risks associated with the government’s heavy reliance on Fujitsu in sensitive areas, such as policing.

More than 70 MPs and peers have called for an immediate review of Fujitsu’s “eligibility to bid for critical government services” in the light of its central role in the widest miscarriage of justice in British history.

In a letter to prime minister Keir Starmer, politicians – including peer and long-time campaigner for subpostmasters, James Arbuthnot – called for the review of Fujitsu’s work in government and for suppliers involved in systemic failures to be mandated to “demonstrate mediation and cooperation with compensation processes as a condition of” being awarded government contracts.

“This is not only about money,” said the politicians. “It is about justice, accountability, and whether it is morally acceptable for Fujitsu to continue to profit from the public purse. The Post Office scandal destroyed lives. That injustice must not be compounded by the continued awarding of lucrative government contracts to Fujitsu.”

It was the takeover of British tech firm ICL in the 1990s that gave Fujitsu existing UK government business, including the huge Post Office Horizon contract, and a doorway to more. The supplier has since forged a deep relationship with the public sector.

Its sway over government is not new. Following a meeting between the British ambassador to Japan and Fujitsu executives in 1998, discussing serious problems with the project to roll out the supplier’s Horizon system in thousands of Post Office branches, the British embassy in Tokyo wrote to the UK government warning it of serious economic repercussions, including UK job losses and reductions in trade, if the contract with the Post Office were to be cancelled.

This is not only about money. It is about justice, accountability, and whether it is morally acceptable for Fujitsu to continue to profit from the public purse. The Post Office scandal destroyed lives. That injustice must not be compounded by the continued awarding of lucrative government contracts to Fujitsu

At this time, in the lead-up to its planned roll-out, the Horizon accounting and retail system from Fujitsu-owned ICL was beset with technical problems. But the government caved in to the pressure, and Horizon was rolled out. This decision meant errors in the system were inevitable.

In June, Computer Weekly reported that Fujitsu bagged £450m in government contracts in its last 12-month business period, including over £300m in contracts with HM Revenue & Customs.

But Fujitsu’s UK public sector business goes beyond what is reported, with subcontracts worth millions not made public.

There is a heavy reliance on the controversial Japanese supplier, which makes its removal difficult. Recent revelations regarding police reliance on Fujitsu systems are further evidence of this.

Last week, Computer Weekly revealed that a Home Office contract with Fujitsu is a conflict of interest because it supports national police investigations, while the supplier and former staff are being investigated. This is part of the national Operation Olympos investigation into potential crimes committed during the Post Office scandal.

The government extended Fujitsu’s Law Enforcement Community Network (LECN) contract in November 2024 through a £15m deal, despite the supplier being investigated in the Post Office scandal probe.

The LECN platform uses networking equipment and encryption technology to provide secure connectivity between forces.

Computer Weekly asked the Home Office:

• When awarding the LECN contract to Fujitsu, what specific conflict-of-interest assessment was carried out, given that Fujitsu was already a potential criminal suspect under Operation Olympos?
• Was the fact that the operation will investigate Fujitsu staff taken into account when the LECN contract was awarded?
• Was the contract reviewed against the exclusion grounds under the UK Procurement Act 2023 (Schedule 6: mandatory exclusion for suppliers under investigation)?
• What “self-cleaning” measures, if any, were required of Fujitsu before contract award?
• What steps are you taking to mitigate these potential risks in the contract in relation to Operation Olympos?
• Were any other suppliers considered for this contract, and why was Fujitsu chosen?

The Home Office did not respond to the questions.

Forensic criminal psychologist Ian Ross, a former police officer and listed expert for the International Criminal Court in The Hague, told Computer Weekly: “There is a de facto conflict of interest here. Given the Metropolitan Police-led Operation Olympos is currently investigating Fujitsu itself, their employees involved in the scandal concerning nothing less than alleged perjury in both the High Court and Crown Court, how can they justify this dubious business relationship?”

The Post Office scandal was first exposed by Computer Weekly in 2009, revealing the stories of seven subpostmasters and the problems they suffered due to the accounting software (see timeline of Computer Weekly articles about the scandal below).