Post Office Spent £600m to Maintain Flawed Horizon System Despite Replacement

A recent investigation has revealed that the Post Office has spent over £600 million in public funds to continue using the error-prone Horizon IT system, even after a decision was made over a decade ago to replace it. This revelation comes amidst the ongoing scandal surrounding the Horizon system, which led to the wrongful prosecution of hundreds of sub-postmasters between 1999 and 2015. These prosecutions were based on data from the Horizon system that incorrectly indicated cash shortfalls at their branches, leading to accusations of theft, fraud, and false accounting. Many of these convictions have since been overturned.
The details of the contracts between the Post Office and Fujitsu, the developers of the Horizon system, show that the Post Office did not own the source code for the core transaction-processing part of the software. This lack of ownership meant that the Post Office was unable to independently scrutinize the system's operations and had to rely on Fujitsu's assurances regarding its accuracy. This reliance continued even as evidence of the system's flaws began to emerge, contributing to the wrongful accusations and convictions of sub-postmasters.
Since 1999, the Post Office has reportedly spent a total of £2.5 billion on contracts with Fujitsu. This includes the £600 million spent on contract extensions since 2012, which was the same year the Post Office reportedly began looking for new suppliers to replace the Horizon system. The fact that such a significant amount of money was spent maintaining a system known to be flawed, while a decision to replace it had already been made, raises serious questions about the Post Office's management and priorities.
The Post Office has stated that it "apologizes unreservedly to victims of the Horizon IT scandal" and has affirmed its commitment to moving away from Fujitsu and the Horizon software. However, the continued expenditure on the system, despite its well-documented failures and the immense human cost of the scandal, has drawn criticism. The inability to access and independently audit the core software due to the lack of ownership is seen as a major contributing factor to the prolonged use of the flawed system.
The government's Department for Business and Trade has acknowledged the need for technological upgrades at the Post Office and has stated that it is providing £136 million over the next five years for a "Future Technology Portfolio." The department also claims to be "working at pace" to ensure the Post Office has the necessary technology, including a replacement for the Horizon system. However, the fact that the flawed Horizon system continues to be used, at a significant cost to the public, highlights the challenges and delays in implementing these necessary changes.
This situation underscores the complexities and long-lasting consequences of the Horizon IT scandal. The financial implications of maintaining the flawed system are substantial, but they are dwarfed by the human cost suffered by the wrongly accused sub-postmasters and their families. As the Post Office continues to grapple with the fallout from the scandal, including ongoing compensation efforts and a public inquiry, the continued reliance on the Horizon system serves as a stark reminder of the deep-rooted issues that need to be addressed to ensure such a miscarriage of justice is never repeated. The focus now remains on the swift and effective implementation of a new, reliable IT system and the provision of adequate redress to all those affected by the Horizon scandal.
Source@BBC