Post Office may spend £180m on Horizon IT system for five more years in huge taxpayer hit

Sub-postmasters have reacted with disbelief the scandal-hit IT system which led to nearly 1,000 wrongful prosecutions could still be in place.

By Richard Ashmore, Senior News Reporter

Paula Vennells

Former Post Office CEO Pauls Vennells appeared at the Horizon inquiry recently (Image: PA )

The faulty IT system that sparked hundreds of wrongful prosecutions against innocent sub-postmasters could be set to be used by the Post Office for another five years in a '£180 million deal'.

Last month, former Post Office boss Paula Vennells appeared in London to give evidence at the Horizon IT inquiry. She burst into tears a number of times and apologised to victims over the failures of the computer software.

The inquiry was set up after Japanese firm Fujitsu's accounting programme was found to have been the real reason behind shortfalls on the books at hundreds of Post Office branches.

Despite mounting doubts over the IT system, the Post Office relentlessly pursued sub-postmasters over the money falsely reported missing, leading to more than 900 being wrongfully prosecuted in 16 years.

According to Computer Weekly, despite the Post Office looking for a replacement IT system, the Fujitsu software is expected to continue being used till the end of the decade.

Post Office and campaigners

It's reported the IT system so dogged by problems could still be used for another five years (Image: PA )

The Post Office is subsidised by the Government, so continued use of the software could cost the taxpayer a reported £180 million, based on a current £36 million yearly contract spend for five years.

Sub-postmaster justice campaigner Robert Trinder told the Telegraph Fujitsu should donate any profits from the deal to Horizon victims.

He told the paper: “We want the new system to be the right one when it does come in, so we understand that there needs to be a new system.

“However, it would have been nice to see Fujitsu do this work for free and donate the £180 million to victims of the scandal. It is a possibility that people will be put off buying post offices if they know Horizon software is still installed.”

Fujitsu

The Japanese firm Fujitsu were the makers of the discredited IT software (Image: PA )

Express.co.uk have approached Fujitsu for comment.

In a statement the Post Office told Express.co.uk: “Working in collaboration with Postmasters, we are continuing to drive forward development and expand our pilots for the introduction of a new IT system that is fit for the future across our 11,500 branches. We are determined to get this right, and with such a large network, careful planning and extensive testing are of overriding importance ahead of full roll-out.

"We are also investing to ensure the successful operation of our existing technology, including extending commercial relationships with suppliers where this is required, as this will ensure postmasters and customers have continuity whilst we develop the new system.”

In Parliament MPs have approved a Bill to quash convictions of theft, fraud and false accounting and other offences against sub-postmasters in England, Wales and Northern Ireland. Their records will also be scrubbed.

A similar Bill is also expected to be passed in Scotland.

Downing Street said earlier this year any compensation package regarding Fujitsu would have to wait until the end of the Post Office Inquiry which is due to report back in 2025.

A No 10 spokesman said: “Our position is that once the inquiry is able to establish the facts and sets them out, those who are found responsible will be held to account, whether that is legally or financially, but again, I can’t prejudge that independent work.”

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