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Monday 23/02/2026

Revelation of 2006 Contract Deepens Post Office Horizon Scandal

Confidential 2006 agreement between Post Office and Fujitsu
Sofia RomanoSofia Romano

In This Article

HIGHLIGHTS

  • A 2006 agreement between the Post Office and Fujitsu to fix Horizon IT system errors has been revealed, contradicting past claims of no bugs.
  • The contract stipulated Fujitsu would pay up to £150 per erroneous transaction, highlighting known data integrity issues.
  • Over 900 sub-postmasters were wrongfully prosecuted due to these errors, leading to what is described as the largest miscarriage of justice in UK history.
  • The document shows both parties could alter branch accounts, contradicting claims that remote adjustments were impossible.
  • The revelation has intensified scrutiny in the ongoing public inquiry into the Horizon scandal.

A newly uncovered document has revealed that the Post Office and Fujitsu had a confidential agreement dating back to 2006 to address errors in the Horizon IT system, which has been at the center of a major legal scandal. This revelation contradicts the Post Office's longstanding claims during criminal prosecutions that no bugs existed in the system capable of causing accounting discrepancies.

The agreement, which was marked "Commercial in Confidence," outlined that Fujitsu was responsible for correcting errors or compensating the Post Office up to £150 per faulty transaction. This arrangement indicates that both parties were aware of potential data integrity issues within the Horizon system, which was used to manage transactions at branch offices.

Between 1999 and 2015, more than 900 sub-postmasters were wrongfully prosecuted based on erroneous shortfalls reported by the Horizon system. Many faced severe consequences, including imprisonment and financial ruin, in what has been described as the largest miscarriage of justice in British legal history. The ongoing public inquiry into the scandal has now been further fueled by this new evidence.

The document also reveals that both the Post Office and Fujitsu had the authority to alter branch accounts, despite previous assertions that such remote adjustments were not possible. Paul Marshall, a senior barrister representing sub-postmasters, stated, "This shows that in 2006 there was a very big, recognized problem with Horizon maintaining data integrity."

Lee Castleton, a former post office operator who was wrongfully accused of false accounting, expressed his distress upon learning of the document. "This makes it a completely different question," he said, emphasizing the impact the revelation could have had on his case.

WHAT THIS MIGHT MEAN

The disclosure of this 2006 agreement is likely to have significant legal and political ramifications. As the public inquiry continues, this new evidence could lead to further scrutiny of the Post Office's actions and potentially more compensation claims from affected sub-postmasters. Legal experts suggest that the revelation may also prompt a reevaluation of the criminal cases against those wrongfully convicted.

Politically, the scandal could lead to increased pressure on government officials and regulatory bodies to ensure greater transparency and accountability in public sector contracts. As the inquiry progresses, the focus will likely remain on how such a significant oversight was allowed to persist for nearly two decades, and what measures can be implemented to prevent similar injustices in the future.