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Post Office Horizon scandal

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  • edited January 14
    BBC detailing Harold Wilsons ultimately disastrous decision to give government contracts straight to Fujitsu;

    "To understand Fujitsu's role, let's go back to its takeover of the British firm International Computers Limited (ICL) - which developed the Horizon software - in the 1990s.

    The relationship between ICL and Fujitsu goes back decades, and the ways in which both operate are quite similar.

    In the 1970s, the Japanese government was trying to counter the dominance of America's IBM, and provided 57bn yen of financial support to three giant technology alliances, one of which was Fujitsu.

    In the UK, the Wilson government was doing just that by forming ICL.

    With the might of the government behind them, Japanese firms went on a shopping spree in the 1980s, encouraged by the favourable exchange rate.

    That was when ICL was having financial issues at home. It held several UK government contracts, as the government had a policy that every computer over a certain size was bought from the company. But the firm was struggling to keep up with its international competitors, and by 1981 it had lost £18.7m.

    Fujitsu and ICL were a perfect match. The takeover allowed Fujitsu to have an outsized presence in the UK, as ICL's strong ties to the government often meant that it was the only bidder for government contracts."

    No wonder Mandelson wanted to push through with Horizon.

  • MrWalker said:
    BBC detailing Harold Wilsons disastrous decision to give government contracts straight to Fujitsu;

    "To understand Fujitsu's role, let's go back to its takeover of the British firm International Computers Limited (ICL) - which developed the Horizon software - in the 1990s.

    The relationship between ICL and Fujitsu goes back decades, and the ways in which both operate are quite similar.

    In the 1970s, the Japanese government was trying to counter the dominance of America's IBM, and provided 57bn yen of financial support to three giant technology alliances, one of which was Fujitsu.

    In the UK, the Wilson government was doing just that by forming ICL.

    With the might of the government behind them, Japanese firms went on a shopping spree in the 1980s, encouraged by the favourable exchange rate.

    That was when ICL was having financial issues at home. It held several UK government contracts, as the government had a policy that every computer over a certain size was bought from the company. But the firm was struggling to keep up with its international competitors, and by 1981 it had lost £18.7m.

    Fujitsu and ICL were a perfect match. The takeover allowed Fujitsu to have an outsized presence in the UK, as ICL's strong ties to the government often meant that it was the only bidder for government contracts."

    No wonder Mandelson wanted to push through with Horizon.

    Way back in the late 1960s/early 70s I was an 'operator' on big IBM mainframe computers, the 360 and 370 series for those IT buffs with long memories .. to those in the know, ICL was a joke, a pale imitation of IBM even to the similar name. Fujitsu took it over to save ICL from gross ignominy and probable bankruptcy, no company in its right mind bought ICL when IBM machines were there to be used
  • edited January 15
    https://www.turbulenttimes.co.uk/news/front-page/politics-the-man-who-saved-the-day/

    Blair's lot also involved in all this. Not that I want to defend the Tories or Ed Davey but, as I have said above, politicians from all parties have dirt and blood on their hands as a result of this disgusting fiasco.
  • Maybe the lesson is never to believe, trust, blindly obey or co-operate with anybody who assumes power or control over you.

    I am not that au fait with the wider theories of Anarchism, or Anarchic structures in the broader sense, and am much more comfortable with being able to identify with a closer to home community based society, where those granted power are close by and can be challenged.

    One of the reasons why I don't recognise the concept of 'patriotism', or any value in subservience.
  • LenGlover said:
    https://www.turbulenttimes.co.uk/news/front-page/politics-the-man-who-saved-the-day/

    Blair's lot also involved in all this. Not that I want to defend the Tories or Ed Davey but, as I have said above, politicians from all parties have dirt and blood on their hands as a result of this disgusting fiasco.
    I started to read it, a short way down it uses itself as a source, and after that, a Mail article as a source. I stopped reading after that. 
  • LenGlover said:
    https://www.turbulenttimes.co.uk/news/front-page/politics-the-man-who-saved-the-day/

    Blair's lot also involved in all this. Not that I want to defend the Tories or Ed Davey but, as I have said above, politicians from all parties have dirt and blood on their hands as a result of this disgusting fiasco.
    I started to read it, a short way down it uses itself as a source, and after that, a Mail article as a source. I stopped reading after that. 
    It's not using itself as a source but linking to yesterday's article. Newspapers are newspapers. Should I ignore The Guardian?

    But we should probably leave it here.
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  • aliwibble said:
    An investigation by the FT suggests that the Post Office claimed tax relief on the compensation payments to the sub postmasters, which isn't legal apparently, and may mean they face £100m tax bill.
    As this may make the Post Office technically insolvent, it'll be interesting to see if there's any attempt to claw back any bonuses paid out to senior staff on the basis of the performance of the company, and/or any prosecutions for false accounting, which would be incredibly ironic in the circumstances.
    The PO is obviously a very easy target atm but the 'claimed tax relief' bit is at best a massive oversimplification and probably slightly wide of the mark.
    The tax deductibility of compo paid to contractors, employees or other successful litigants is in a slightly grey area but a case for it as a legitimate business expense could be made.
    What aren't in a grey area are fines and penalties handed down by authority; from banalities like parking or speeding fines to those imposed by courts for law breaking.  Penalties imposed by HMRC for late or faulty tax compliance are not tax deductible.
    There is no specific tax penalty for being shit at what we do and it costing us loads - we don't get taxed on the profits we might have made had we been less shit, we are all just taxed on the money we actually made.
    This story splashed across MSM centres on the provisions PO has made in its accounts for possible future costs of compensating the mistreated SPMs.  PO seems to have made the assumption all those costs will be tax deductible and estimated its tax bill accordingly.  PO does note that there is some uncertainty over the tax treatment of the future liabilities but it hasn't quantified that uncertainty.
    As far as we know PO hasn't yet been handed down a judicial penalty for any wrong doing - that cost would indeed not save them any tax.
    We also don't know if HMRC has challenged the tax treatment of any compo that PO may already have paid to victims.
    For the purposes of the published accounts PO just has to get its auditors to agree the provisions and their tax treatment.

    Two other things: PO is in every practical sense just an arm of HMGov and the Treasury - the fact it is charged any Corporation Tax on its results is stupid in the extreme - it's just public money moving around - one department taxing another is a dismal waste of time and resources.
    This fact also pulls the rug out from the noise about 'insolvency'.  The PO is legally constituted as a trading company with one shareholder: HMGov.  The numbers cobbled together to make up its annual accounts might show it to be insolvent but its access to funds to pay its bills is not in serious question.

    We expect alarmist halfbaked cobblers from most of the mainstream media but it reflects very poorly on the FT for them to have parroted the same "story".  Their 'investigation' amounts to one bloke's opinion.
  • Full two page 'comment' in Saturday's 'Times' (can't reproduce it here, can anybody else ?) .. puts Fujitsu right in the dock and exposes their executives and 'experts' as liars and fraudsters .. perjury, indolent politicians and executives .. the best article about this whole affair that I have read so far
  • edited January 16
    I recommend reading Nick Wallis' book The Great Post Office Scandal.  It goes into more detail than I've seen elsewhere.

    The personal stories are heartbreaking to read. 

    It also highlights some of the legalities in an easily readable way.

    It's a big book, over 500 pages and I'm only part of the way through it, but it is very informative.
  • Fujitsu giving evidence tomorrow. I wonder what they can remember.
  • Off_it said:
    Fujitsu giving evidence tomorrow. I wonder what they can remember.

  • Having been involved with many IT systems and roll outs, my experience is that bugs and errors are a normal part of system management.  I have, however never been in position of not having access to support which was accountable to users to sort out reported transaction errors or erroneous reporting. My guess is that Horizon was poorly designed but probably no worse than scores of business critical systems currently being operated throughout the UK. This is why Fujitsu have tried to present the system as "robust" in the face of evidence of bugs and errors known to Fujitsu and the Post Office.  

    In the Inquiry Fujitsu tries to show it was a "normal" system - beset with the bugs and errors reported by users any IT system would experience.

    In my view the crucial failure and criminal negligence, was less in the system integrity of a poorly designed system, rather the lack of transparency and control of the users to manage the impact of bugs and errors to resolve the resulting problem of non-balancing accounts. Users were oblivious to how their data was being altered and impacted by manual intervention of Fujitsu behind the scenes to get round the effect of bugs. In some IT environments, manual intervention may be the only way to correct an anomaly in advance of a software fix, so what Fujitsu were doing was not extraordinary, except it should only have happened transparently with the full knowledge and agreement of the user and implemented only after re-testing.

    Sub-postmasters had no access to any data to prove their innocence in the face of an inept and corrupt investigation and prosecuting process - a perfect recipe for disaster.

    I suspect Fujitsu will show they delivered a system that the Post Office accepted and were operating exactly as the Post Office contract required.  The Post Office didn't have a clue of the impact on sub-postmasters of what they had delegated and must take the main blame and face the consequences.
    While I accept your opening premise is true, I think you might be letting Fujitsu off the hook a bit here.
    Now my view is largely based on a dramatisation of the facts. Nevertheless, even a dramatisation will not depict scenes which cast aspersions on  a major player in a controversial scandal in a negative light, especially a global corp. unless those scenes are substantively true. And Fujitsu are staying very quiet, no lawsuits being hurled at ITV. So, we must assume it’s true that Fujitsu set up that team we saw being visited by the postmasters’ union rep. It was routinely going into postmaster accounts and changing stuff without them knowing. Do you think it ok that nobody senior in Fujitsu questioned the ethics of that? They were operating that team on behalf of the PO and for substantial fees. In my view they need to be held to account, and I notice that some heavy -hitting journos, such as Emily Maitlis are starting to ask questions. 
    Having seen more disclosures in the Skinner case I agree. They clearly knew people were being prosecuted on the back of evidence it was in their interests to assist PO in suppressing.. But I still think it was the PO driving the direction Fujitsu went.and still deserve the most blame. Fujitsu might end up paying out huge sums in order to restore Japanese “honour” which I hope doesn’t deflect responsibility away from PO.
  • edited January 16
    I recommend reading Nick Wallis' book The Great Post Office Scandal.  It goes into more detail than I've seen elsewhere.

    The personal stories are heartbreaking to read. 

    It also highlights some of the legalities in an easily readable way.

    It's a big book, over 500 pages and I'm only part of the way through it, but it is very informative.
    I dare say a few or even a lot of people are getting bored with this subject .. BUT the 2020 radio series, the precursor to the book @ME14 references is being repeated on R4 NOW .. Just a short 15 min listen to today's repeat at 9.45 (episode 14) really sums up the absolute scandal .. I really recommend that you all take a quarter of an hour to listen to this extract, it's like something out of 1984 or Soviet Russian 'justice', absolutely despicable and shocking
  • I think most of us would have a different definition of "swift" tbf. 


  • edited January 16
    Some of the post master 'victims' are now giving evidence/ views to a House of Commons committee, being shown live on BBC & SKY News channels.
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  • Fujitsu saying they have a moral duty to compensate victims. 
  • Rizzo said:
    Fujitsu saying they have a moral duty to compensate victims. 
    Wonder why, all of a sudden? 🙄 
  • I hope, but not confident, that it will be foreseen the individuals compensated represent the biggest and most vulnerable group exposed to the trawl nets of vultures in the Financial Services industry ever to surface.

    Unless part of the compensation includes a panel of pre-vetted advisers remunerated on a pre agreed fee basis paid by government/Post Office on top of the compensation I guarantee we will see the biggest feeding frenzy by advisers ever to land on their table, with the most unscrupulous, as always, having the biggest snouts in the trough.


    Problem is, well evidence by the PPE scandal, the vetted firms will no doubt be mates of whichever minsters and civil servants control the process.  

    What a shit star of affairs when public trust in every corner of self-serving government and corporate power has evaporated being shown repeatedly bereft of any guiding moral compass.
    Great point, that. It’ll probably include the cowboys who sold footballers the “investments“ in films, and they will probably name-drop said footballers too. 

    Mind you, if Alan Bates is aware of the danger he’s probably the one person in the land able to organise protection from this threat
  • Patterson giving 'evidence' to the HOC committee .. his voice is a dead ringer for good ol Roy Hodgson .. would you trust this man in a dark alley ??

    Post Office Horizon IT scandal
  • Coming next the Loan Charge scandal. 10 known suicides. Chief perpetrator Mel Stride.
  • the above reads (or should read) 2.6 Million and not 26 Million
  • Rizzo said:
    Fujitsu saying they have a moral duty to compensate victims. 
    Rizzo said:
    Fujitsu saying they have a moral duty to compensate victims. 
    Wonder why, all of a sudden? 🙄 
    Don't knock it, it's a step in the right direction. I think most of us had a suspicion that they might try and hide, like the PO people seem to have done when giving evidence in the past, but at least he seems to be saying the right sort of thing now.

    From the BBC;

    Mr Patterson apologised for Fujitsu's role in what he said was an "appalling miscarriage of justice", and admitted the company had been "involved from the very start".

    "We did have bugs and errors in the system and we did help the Post Office in their prosecutions of the sub-postmasters," he said.

    Asked why Fujitsu didn't do anything about glitches in the Horizon system when the company knew about them at an early stage, Mr Patterson said: "I don't know. I really don't know."

  • edited January 16
    When I heard MP's say to Patterson and Read, can we have a yes or no answer when they were giving waffling answers, the irony wasn't lost on me.
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