5. Mr Carroll asked the Minister of Finance for her assessment of awarding public procurement contracts to Fujitsu. (AQO 238/22-27)

As the Member will be aware from briefings at the Finance Committee, there are strict rules regarding the award of public contracts.

There are currently no grounds under the Public Contracts Regulations 2015 that would exclude Fujitsu from tendering for public contracts.

I thank the Minister for her answer. Minister, you will be aware from the Horizon scandal that that company has destroyed people's lives across these islands and driven some to suicide. We have to ask serious questions about Fujitsu and companies like it. The scandal has been known about for many years. I suggest that your Department and officials need to take action. Fujitsu has £775 million of contracts in total. It has destroyed people's lives but has been handsomely paid by Departments. That is completely unacceptable.

I am not sure that there was a question there, but you might want to respond, Minister.

We are all appalled by the Horizon scandal and the impact that it has had on those who have been directly affected and their families. As I said in my original answer, the awarding of public contracts is bound in legislation as it stands and there are no grounds under the Public Contracts Regulations. Obviously, a public inquiry is ongoing, and we await its outcome.

Gabhaim buíochas leis an Aire.

[Translation: I thank the Minister]

Minister, can you expand on the circumstances in which suppliers can be excluded from the awarding of government contracts and the extent to which public interest, public ethics and human rights influence that process, please?

A supplier may be excluded from tendering for government contracts only if it has committed an offence under the legislation listed in the Public Contracts Regulations. That legislation relates to offences committed mainly in regard to theft, bribery, fraud, organised crime, professional misconduct, labour market offences, tax offences or breaches of competition law. At this stage, Fujitsu has not been found guilty of any of those crimes in relation to fraud or other crimes related to Horizon, and therefore there are no grounds, as it stands, for its exclusion from tendering for public contracts. Due to its ongoing involvement in the inquiry, Fujitsu has agreed to pause bidding for public contracts for new clients. On 18 January 2024, the local Fujitsu account manager provided some clarifications to the Department of Finance regarding Fujitsu's involvement in procurement here, and that position is likely to remain unchanged until the inquiry has reported. The inquiry is scheduled to conclude in September 2024, with a report to follow later in the year.

When will the Minister bring forward a review of public procurement, following the publication of the Northern Ireland Audit Office (NIAO) report in April last year? I note that, in response to an Assembly question for written answer from me, you indicated that your Department was finalising the terms of reference: are we to believe that that is imminent?

In April 2023, the Audit Office published a report on its review of public procurement structures here. The report recognised the importance of public procurement as an enabling function for Departments to deliver essential public services and highlighted the need to ensure that procurement functions effectively in order to achieve value for money and align with broader Executive priorities. The report discussed the key role and responsibilities assigned to the Procurement Board under existing public procurement policy and concluded that a review of public procurement arrangements is necessary, including the role, responsibilities and position of the Procurement Board. I am considering the report and will bring my recommendations on the Procurement Board and a review of procurement governance to the Executive for consideration before summer recess.

I am just seeking clarification from the Minister on something that she said in answer to Mr Kearney, which was that Fujitsu will not be bidding for any further public contracts. Is that correct? Is that in Northern Ireland, and, if so, how long is that for?

My understanding of the current situation in relation to Fujitsu is that there will not be contracts with new customers. Where it already has contracts with an organisation or is involved in a bidding process, that will continue. As I said, there are no grounds, at this stage, to exclude it from that process.

For clarity, there are no implications for existing contracts, should a company be found guilty of any or all of the offences listed by the Minister.

Obviously, there are legal issues in respect of the delivery of contracts. The position would be in respect of new contracts. I will write to the Member, outlining details on the specifics of the regulations on public procurement and contracts.