FUJITSU has told ministers they will not bid for government contracts while the inquiry into the Post Office scandal is on-going.
The Japanese firm has won nearly £7 billion of contracts since 2012 but their bungling systems led to hundreds of postmasters being convicted over theft and fraud charges.
APMore than 900 subpostmasters were prosecuted after the faulty software incorrectly made it look like money was missing from their branches[/caption]
Cabinet Office Minister Burghart confirmed they had “voluntarily” made the decision.
Speaking in the Commons, he said: “This morning (the) Cabinet Office received a letter from Fujitsu voluntarily undertaking not to bid for government contracts whilst the inquiry is ongoing, unless of course the government ask them to.”
His comments came after after Tory former Cabinet minister Sir David Davis had called for companies such as Fujitsu to be blocked from bidding for government contracts due to their “terrible track records”.
Sir David said: “This week it’s been reported the Government tried to block Fujitsu from bidding for future contracts on the basis of woeful performance in previous contracts.
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“Government lawyers advised this could not be done. They are wrong. So, will the Government give further serious thought to blocking large companies like Fujitsu with terrible track records from bidding for future contracts, and if absolutely necessary legislate accordingly?”
Fujitsu plays a major role in the public sector, both through its services and substantial revenue in the country.
Since 2012, the public sector as a whole has awarded Fujitsu almost 200 contracts worth a combined total of £6.8 billion, according to analysts Tussell.
About 43 of those contracts are still in operation, worth a total of £3.6 billion, including the contract for the Post Office Horizon system, and multiple Government departments including the Home Office, the Foreign Office, Defra and the Ministry of Defence.
Earlier this week, Fujitsu Europe director Paul Patterson apologised to subpostmasters who had been wrongly convicted as a result of problems with the Horizon software.
He conceded there were “bugs and errors in the system” and said Fujitsu had a “moral obligation” to contribute towards compensation.
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