Fujitsu underestimated Put up Workplace scandal backlash

HM Income and Customs (HMRC) has changed a consortium led by Fujitsu on its post-Brexit buying and selling service for Northern Eire, value tons of of thousands and thousands of kilos. 

When information broke in February that HMRC was seeking to change Fujitsu on the Dealer Help Providers (TSS) contract, a senior determine on the provider reassured colleagues that it “was bidding to win”.

However in accordance with Politico, Fujitsu has not succeeded in retaining the profitable contract, as stress builds on the provider’s UK enterprise within the wake of the Put up Workplace scandal.

It isn’t the primary main HMRC contract misplaced by Fujitsu within the aftermath of the ITV dramatisation of the Put up Workplace scandal. HMRC, which is described as Fujitsu’s “UK authorities money cow”, dropped the provider from a datacentre providers contract by way of a tender value £500m designed to exit its providers.

Peer James Arbuthnot, who has campaigned for Put up Workplace scandal victims for over 15 years, stated: “It’s about time it misplaced contracts. Seventy-six members of the Home of Lords wrote to complain about the best way Fujitsu was nonetheless successful tons of of thousands and thousands of kilos value of contracts. So, it’s excessive time we broke our dependency on an organization which clearly doesn’t share our values. Possibly that is [another] crack within the dyke. I do hope so.”

Learn extra: Fujitsu’s position within the Put up Workplace scandal – every little thing it is advisable to know

The loss comes regardless of earlier confidence inside the provider that it may retain the work. In February, Dave Riley, who was Fujitsu’s UK public sector head on the time, was assured it may maintain the contract.

He instructed colleagues in an inside assembly: “Authorities are conscious that we’re going to bid for this work, and I believe we now have a singular perspective, provided that we’re the present incumbent, in how we method the subsequent technology.”

This confidence in Fujitsu’s capability to proceed to scrape up massive authorities contracts was repeated in October when, regardless of public and political anger at Fujitsu, its then personal sector boss Ronnie Abraham instructed colleagues that the enterprise was “constructed for the general public sector”. He defined to them that as a result of Fujitsu had been successful enterprise within the UK public sector for a very long time, it knew lots of people and understood the area.

In a recording heard by Pc Weekly, he additionally instructed workers that the provider may get round its self-imposed public sector bidding pause by working as a subcontractor, with different suppliers fronting the bids.

He stated different suppliers, together with BT and Vodafone, have been “very eager” to work with Fujitsu as prime contractors, with the Japanese provider a subcontractor, which might allow it to take authorities work with out bidding itself. Each suppliers refuted this assertion.

Abraham, who has now left Fujitsu, apologised to scandal victims for his feedback when contacted. Pc Weekly can reveal that Abraham has since joined BT in a senior position.

HMRC wouldn’t remark immediately on the contract award, however a spokesperson stated: “We comply with authorities procurement guidelines when awarding contracts, guaranteeing worth for cash for taxpayers. All bids underwent a sturdy analysis and assurance course of, and we’ll verify the award sooner or later.” 

In keeping with authorities figures, between the start of April and the tip of September this 12 months, Fujitsu obtained £110m from HMRC in return for IT providers.

The determine for six months is greater than double the entire £48m value of the Put up Workplace scandal public inquiry between 2000 and 2024, and twice the estimated £50m value of Operation Olympos, the nationwide police investigation into the scandal. Invoices for desktop providers, bodily internet hosting and infrastructure, pill computer systems and software program licences are included.

The Put up Workplace scandal was first uncovered by Pc Weekly in 2009, revealing the tales of seven subpostmasters and the issues they suffered because of the accounting software program (see timeline of Pc Weekly articles concerning the scandal under).