Fujitsu boss says there is 'moral obligation' to pay Post Office scandal compo

16 January 2024 , 15:01

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Paul Patterson, director of Fujitsu Services Ltd, giving evidence to the Business and Trade Committee at the Houses of Parliament (Image: PA Wire/PA Images)

Fujitsu's boss has admitted the tech giant has a "moral obligation" to chip in to the compensation for the Horizon scandal.

Paul Patterson, Fujitsu Europe director, dished out an apology to subpostmasters and got grilled by MPs on Tuesday. Nick Read, the chief of Post Office, joined him as public frustration keeps mounting about the notorious Horizon scandal.

The Japanese firm's involvement has especially been in the crosshairs, with Mr Patterson starting the session by apologising for the "appalling miscarriage of justice" that postmasters had to go through. Rishi Sunak recently declared that those wrongfully convicted could have their names cleared before the year ends under fast-tracked laws.

This followed increased urges for more decisive action after an ITV drama on the scandal sparked anger among viewers. Those who manage to get their convictions quashed are eligible for up to £600,000 compensation, while Mr Sunak gave £75,000 each to postmasters involved in group legal action against the Post Office. Lawyers believe that hundreds of other people caught in the scandal might now step out from the shadows after this development.

Campaigners, including former subpostmaster Alan Bates who was at the centre of the ITV drama Mr Bates Vs The Post Office, have criticised the "madness" of delays in processing compensation claims. Mr Patterson, who has been with the firm for over a decade and in his current role since 2019, told MPs that there was a "moral obligation for the company to contribute" to compensation.

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"It's also important that the inquiry deals with these very complex matters," he said. "In that context, absolutely we have a part to play and to contribute to the redress, I think is the words that Mr Bates used, the redress fund for the subpostmasters."

Mr Read, who took charge of the Post Office in September 2019, insisted the organisation has now drastically changed. He blamed a "culture of denial" for the company dragging its feet on compensation, as he also appeared to concede the Post Office could ultimately face liabilities from the scandal of close to £1 billion.

Appearing before the same committee as former boss Paula Vennells did in 2015, he also told MPs he had not "seen any evidence" that executives misled ministers, the courts or Parliament at any stage. The scandal has seen calls for the Post Office to be stripped of its private prosecution powers.

But Mr Read has said he does not think that the organisation will perform any more private prosecutions in the future. "I've been very clear on my watch they won't and I see no reason why they should continue to do so," he told MPs. However, the two bosses were criticised by MPs for not providing enough clarity to the committee.

Business and Trade Committee chairman Liam Byrne expressed his shock at the evidence presented. "You've not been able to supply the committee with key events in the timeline, such as when the Post Office first knew that remote access was possible. You've told us that you haven't kept evidence safe about what money was paid to you inappropriately and, therefore, is owed back."

He also pointed out their inability to estimate the scale of compensation. Post Office minister Kevin Hollinrake welcomed Fujitsu's commitment to compensation during the evidence session.

He suggested that any funds from the firm should be used to reimburse taxpayers for the cost of compensation, which he estimated would exceed a billion pounds.

Earlier, Mr Bates had told MPs that the compensation process was slow and inefficient. "I think it was 53 days before they asked three very simple questions. It's madness, the whole thing is madness. And there's no transparency behind it, which is even more frustrating. We do not know what's happening to these cases once they disappear in there."

Mr Bates and Jo Hamilton, a former subpostmistress who was wrongfully convicted, expressed their frustrations about the slow pace of compensation payouts to MPs. Neil Hudgell, a solicitor, shared these concerns, revealing that only three of his wrongfully convicted former subpostmaster clients had received compensation.

Lord Arbuthnot, a member of the Horizon compensation advisory board, stated his desire to have the redress process completed by year's end. The Horizon scandal resulted in over 700 subpostmasters and subpostmistresses being wrongfully convicted due to faulty software from Fujitsu, which made it seem like money was missing at their branches. The Government is now working hard to clear their names and compensate those affected.