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Wednesday, January 10, 2024

Rewarding failure

If there is one universal constant in this world it is bureacratic inertia, a tendency for government to plough on regardless, irrespective of the storms gathering around it.

This has never been seen more clearly than in the Post Office Horizon scandal, when a failed ICT project to enable benefits to be paid over Post Office counters was transformed into accounting software for small sub-postmasters. This scheme inevitably failed to work properly, ruining the lives of over 700 famlies when the bureaucrats in both Fujitsu and the Post Office decided to blame the victims rather than admit to their own failings.

What is worse, is that despite twenty odd years of news stories exposing this scandal, culminating in a revelatory TV drama that has taken the whole nation by storm, the UK government has continued to throw public money at the IT company involved, while ministers and civil servants still embrace large, flawed ICT projects as a universal solution to good governance and financial prudence.

Thus, the Mirror reveals that since 2012, more than a decade after the Post Office accounting scandal began, the public sector has awarded Fujitsu almost 200 contracts worth £6.8billion in total:

Fujitsu is still being allowed to bid for the lucrative work after its faulty software led to hundreds of innocent sub-postmasters and mistresses being wrongly prosecuted.

Since 2012 – more than a decade after the scandal began – the public sector has awarded Fujitsu almost 200 contracts worth £6.8billion in total, analyst Tussell says.

Fujitsu is still one of the Government’s “strategic suppliers”, which typically means it receives over £100million in contracts per year. Labour MP Kate Osborne, who has campaigned on the scandal, said: “It is astounding the Government is continuing to award them billions of pounds worth of contracts. The least they could do is not give them any new contracts. It’s a kick in the teeth for the former postmasters.”

The Government has said Fujitsu may be forced to contribute cash for compensation, but is refusing to stop the firm bidding for contracts until a public inquiry into the scandal has finished. The probe was established in 2020.

Journalist Tony Collins, the former editor at Computer Weekly which first exposed the scandal, said: “I smile wryly when I hear ministers saying they’re going to get redress from Fujitsu. It’s not going to happen... They can’t be forced to do anything. They are in a uniquely strong position.”

The Mirror also reveals that Fujitsu’s non-executive chairman until 2019, Simon Blagden is a Tory party member who has donated £376,000. Fujitsu insists the donations he made to the party while with the company came from his own money. The paper also reveals that Mr Blagden, who was said to have dined regularly with PM Theresa May, was awarded a CBE in 2016 for services to the economy.

But this isn't just about the Tories, Labour Governments have also awarded Fujitsu lucrative ICT contracts as well, while the company schmoozes MPs from all parties. Its accounts reveal that in 2015-16 it paid £21,000 to the Tories, £14,000 to Labour and £11,000 to the Lib Dems, amounts it says formed part of “the company’s presence at all three main political parties’ annual party conferences”. At the Conservative conference, the company has run the Blue Room, a private luxury lounge where executives mingle with ministers.

Surely, it's time to end this government love affair with Fujitsu and to stamp out bureaucratic obsession with ICT as a solution to all problems. Bigger is not better, as the Post Office scandal so ably illustrates.
Comments:
Interesting to note that Gillian Keegans hubby was CEO of Fujitsu.
interesting to see it stays close to all parties (with Tories tops).Interestin to see it is the 'go to' company for IT.
DOES THE ESTABLISHMENT PREFER THIS COMPANY?
 
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