Question to the Cabinet Office:

To ask His Majesty's Government what guidance has been issued to departments regarding the ethical and reputational risks of awarding contracts to companies, including Fujitsu, that are subject to ongoing public inquiries into failures of governance and corporate responsibility.

Answered by Baroness Anderson of Stoke-on-Trent - Baroness in Waiting (HM Household) (Whip)

The Procurement Act 2023 enables and, where appropriate, requires the exclusion of suppliers where they pose particular risks to public procurement. The Cabinet Office has issued substantial guidance for departments, available on Gov.uk. The exclusions regime provides a framework within which contracting authorities must consider a supplier’s recent past behaviour and circumstances (or their presence on the debarment list) to determine whether it should be allowed to compete for or be awarded a public contract.

In January 2024, Fujitsu said it would withdraw from bidding for contracts with new Government customers until the Post Office Horizon inquiry concludes – it would only bid for work with existing Government customers where it already has a contract with them, or where there is an agreed need for Fujitsu’s skills and capabilities.

Fujitsu's bid approach is detailed in correspondence deposited in the Houses of Parliament libraries on 4 March 2024 (DEP2024-0247).

Question to the Cabinet Office:

To ask His Majesty's Government whether they have considered placing a moratorium on new contracts with Fujitsu until the public inquiry into the Horizon scandal has concluded.

Answered by Baroness Anderson of Stoke-on-Trent - Baroness in Waiting (HM Household) (Whip)

The Procurement Act 2023 enables and, where appropriate, requires the exclusion of suppliers where they pose particular risks to public procurement. The Cabinet Office has issued substantial guidance for departments, available on Gov.uk. The exclusions regime provides a framework within which contracting authorities must consider a supplier’s recent past behaviour and circumstances (or their presence on the debarment list) to determine whether it should be allowed to compete for or be awarded a public contract.

In January 2024, Fujitsu said it would withdraw from bidding for contracts with new Government customers until the Post Office Horizon inquiry concludes – it would only bid for work with existing Government customers where it already has a contract with them, or where there is an agreed need for Fujitsu’s skills and capabilities.

Fujitsu's bid approach is detailed in correspondence deposited in the Houses of Parliament libraries on 4 March 2024 (DEP2024-0247).

Question to the Cabinet Office:

To ask His Majesty's Government what steps they are taking to ensure that companies under investigation by a public inquiry are subject to enhanced scrutiny or restrictions in future public procurement processes.

Answered by Baroness Anderson of Stoke-on-Trent - Baroness in Waiting (HM Household) (Whip)

The Procurement Act 2023 enables and, where appropriate, requires the exclusion of suppliers where they pose particular risks to public procurement. The exclusions regime provides a framework within which contracting authorities must consider a supplier’s recent past behaviour and circumstances (or their presence on the debarment list) to determine whether it should be allowed to compete for or be awarded a public contract. Contracting authorities can take account of any criticism of suppliers in public inquiry findings when considering whether an exclusion ground applies as part of this process.

Question to the Cabinet Office:

To ask His Majesty's Government whether they have any plans to introduce new safeguards to prevent companies involved in a statutory inquiry from securing public sector contracts.

Answered by Baroness Anderson of Stoke-on-Trent - Baroness in Waiting (HM Household) (Whip)

The Procurement Act 2023 enables and, where appropriate, requires the exclusion of suppliers where they pose particular risks to public procurement. The exclusions regime provides a framework within which contracting authorities must consider a supplier’s recent past behaviour and circumstances (or their presence on the debarment list) to determine whether it should be allowed to compete for or be awarded a public contract. Contracting authorities can take account of any criticism of suppliers in public inquiry findings when considering whether an exclusion ground applies as part of this process.