Severity 2 — Troubling🔴 corruption1996

Post Office Horizon Contract Signed — £1 Billion for a System Nobody Tested Properly

John Major's government signed a £1 billion contract with ICL (later Fujitsu) to automate Post Office counters with the Horizon accounting system and to handle benefit payments on behalf of the Benefits Agency. No adequate independent testing regime was mandated. The contract gave Fujitsu unusual protection from liability for software defects. The system would go on to produce the wrongful conviction of over 900 subpostmasters.

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John Major — Conservative Party

In power 1990–1997

What happened

The Horizon contract was one of the largest IT procurements in British history. The government\'s stated aims were modernisation of the Post Office network and efficiency in benefit payments — both reasonable goals.

What the Major government failed to do:

1. **Mandate independent software verification.** The contract did not require rigorous third-party testing of Horizon's accounting accuracy before it was used as evidence in prosecutions. This was not standard at the time — but for a system whose output would be used to accuse employees of theft, it should have been.

2. **Scrutinise the Post Office's prosecution powers.** The Post Office held a rare and largely unremarked legal status: it was a private body with the power to conduct its own criminal prosecutions without CPS oversight. Major\'s government did not review whether that power was appropriate for an organisation about to stake its prosecutions on a new and untested IT system.

3. **Include liability protections.** The contract gave Fujitsu significant protection from consequences if the software was wrong. The financial incentive to acknowledge defects was therefore low.

At the time of signing, this was a procurement decision that looked like routine government IT modernisation. Nobody in 1996 could have predicted that the system would produce 900 wrongful convictions. The severity rating here is low because the harm was not yet apparent — but the decisions made in this contract would shape everything that followed.

Source

Post Office Horizon Inquiry — Final Report 2024

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