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After technical difficulties moving to cloud

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After technical difficulties moving to cloud

the Post Office has extended a contract to Fujitsu. It was unable to resolve technical issues related migrating its IT into the cloud

By Karl Flinders
Chief journalist and senior editor EMEA

Publication: April 20, 2023, 11:32

After fundamental technical problems prevented the planned migration to cloud computing from being completed in time, the Post Office will pay PS16.5m to renew a contract with Fujitsu.

The Post Office extended its IT services agreement with Fujitsu in 2021 while it prepared for the migration of IT from one supplier to another or bring it in-house.

Although the contract was extended from 1999 to March 2024 by the Post Office, the central network services and datacentre operations part of the contract were due to expire one year earlier.

The Post Office has delayed the expiration of the contract until March 2024 due to technical difficulties in moving to a cloud provider.

The contract notice stated that technical difficulties in moving to a cloud service provider have caused the Post Office to delay until March 2024. We have therefore made changes to our contract with Fujitsu that will apply to 31March 2024, st March 20, 2024.”

A number of subpostmasters were convicted for financial crimes such as theft and false account. This was based on evidence from the IT systems. More than 700 subpostmasters were charged with theft and false accounting in what was called the worst miscarriage of justice in UK history. This was based on evidence from the flawed Horizon program.

Subpostmasters were sent to prison and many were declared bankrupt due to their unexplained losses. In 2019, a High Court case proved that the Horizon system was flawed and could have led to unexplained loss.

86 former subpostmasters convicted have had their convictions overturned, with more to come.

Computer Weekly published seven stories in 2009 about subpostmasters who were affected by the losses.(see the timeline below for Computer Weekly coverage from 2009).

The scandal is expected to cost the UK taxpayers more that PS1bn. This was after the government agreed with the Post Office to be rescued and to pay compensation to those who were affected by the scandal. The Post Office has not been held accountable for any of its senior officials.

Fujitsu is currently exempt from any sanctions for covering up IT problems that led to phantom losses. Subpostmasters were also blamed and published for their part.

The UK government continues to award lucrative contracts to the Japanese IT giant.

Fujitsu won IT services contracts last year from the Home Office, HM Revenue & Customs, and the Foreign, Commonwealth & Development Office. HMRC will pay it PS250m to replace an in-house service. The FCDO has contracted Fujitsu to provide networking services and communications services in a deal of PS184m. Fujitsu is also being paid PS48m by the Home Office to support the technology that underpins the Police National Database.

More information on IT suppliers

  • CCRC opens door for subpostmaster convictions reviews

    By: Karl Flinders

  • Subpostmaster demands names of Post Office executives who crushed him to suffocate truth

    By: Karl Flinders

  • IT worker evidence reveals a toxic Post Office IT helpdesk that discriminated against subpostmasters

    By: Karl Flinders

  • Post Office’s most senior executives hushed up Horizon errors, public inquiry told

    By: Karl Flinders

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