NI Education Authority halts £500m Fujitsu schools' contract

The Education Authority (EA) in Northern Ireland has decided not to proceed with a contract with Fujitsu worth almost £500m.

The contract was to provide a new IT system for all schools in Northern Ireland.

The Japanese firm has faced criticism for its role in the Post Office scandal.

Fujitsu created the faulty Horizon software which wrongly calculated money was missing from Post Office branches.

In a letter to school principals, the EA said the parties had mutually agreed not to continue with the contract, but no reason was given for ending the deal.

A number of sub-postmasters from Northern Ireland are among those to have wrongful convictions quashed.

The issue was highlighted by the ITV drama Mr Bates vs the Post Office, which was broadcast in January 2024.

The EA had awarded Fujitsu a £485m contract for schools' IT in December 2023, just before the ITV drama was aired.

In a letter to school principals obtained by BBC News NI, the EA said that contract had been awarded "following a robust procurement process".

But it went on to say that "after an extensive negotiation period between EA and Fujitsu, the parties have mutually agreed on a no-fault basis not to continue with this contract with immediate effect".

However, the letter said that schools would "not experience any disruption to services as a result of this decision".

"All existing services delivered through the current managed service will continue to be delivered and supported."