The recent revelation concerning the Post Office and Fujitsu highlights a significant scandal that has persisted over the past two decades. A document unearthed from 2006 details a contractual agreement between the Post Office and Fujitsu, the provider of their Horizon IT system, which aimed to remedy the transaction errors impacting the accounts of sub-postmasters. This document sheds new light on the acknowledgment of software bugs and errors that have led to widespread wrongful prosecutions, contradicting the Post Office’s previous denials regarding the system’s reliability.
Initially, the details of this agreement indicate that should Fujitsu fail to rectify transaction errors caused by bugs in their software, they were liable to pay the Post Office up to £150 per incident. This stands in stark contrast to assertions made by Post Office officials during criminal prosecutions against sub-postmasters, where they claimed no such bugs existed. The implication here is profound: the Post Office was aware of issues within the Horizon system that could lead to inaccuracies in financial reporting but chose to prosecute sub-postmasters instead.
Between 1999 and 2015, over 900 sub-postmasters faced prosecution due to deficiencies in the Horizon system, which erroneously indicated financial shortfalls in branch accounts. The consequences of these prosecutions were dire, with many individuals losing their livelihoods, enduring financial ruin, and even facing imprisonment. It has been described as one of the most severe miscarriages of justice in British history, which is still the subject of ongoing public inquiry and analysis.
The newfound documentation not only confirms that the Post Office recognized the potential for discrepancies within the Horizon IT system but also indicates the existence of a financial framework in place meant to address such discrepancies. In numerous instances, the Post Office maintained that the issues with the system did not justify the accusations of incompetence or dishonesty against the sub-postmasters. Yet, this newly revealed contract outlines the expectation that Fujitsu would correct transaction errors or face financial penalties. This indicates a long-standing awareness of the system’s failure to maintain accurate data integrity.
Furthermore, the document brings to light that it acknowledged the capability for remote access to sub-postmasters’ accounts by Fujitsu, something that had been denied in previous legal battles. This development poses serious questions about the integrity of the Post Office’s legal arguments and the motivations behind their prosecutions during the crisis.
The implications of the document have drawn substantial attention from experts and critics alike. Paul Marshall, a senior barrister representing many affected sub-postmasters, highlighted that the existence of such a contract challenges the Post Office’s narrative. He emphasized that the organisation had consistently laid blame for financial discrepancies on postmaster incompetence or dishonesty rather than acknowledging system faults. The reality, underscored by the document, is that there was a recognized systemic issue long before many of these prosecutions occurred.
In response to the scandal, Lee Castleton OBE, one of the wrongfully prosecuted sub-postmasters, is now suing both the Post Office and Fujitsu, citing the document as crucial evidence in his legal battles. He articulated the feeling of betrayal and the devastating effects of the scandal on victims like himself, who endured extensive legal battles and financial hardship.
Experts within the inquiry have expressed shock at the revelation, with forensic accountant Ron Warmington labeling the implications of this document as “dynamite.” Meanwhile, both Fujitsu and the Post Office have issued statements acknowledging the impact of the Horizon IT scandal, with promises to improve transparency and accountability as investigations continue.
As this story unfolds, it serves as a stark reminder of the need for diligence and ethical responsibility in corporate governance, particularly when the lives and livelihoods of individuals are at stake. The ongoing saga of the Post Office scandal is sure to be scrutinized further by the public and Parliament as the inquiry advances.
