The company that built the [1]faulty Post Office Horizon software is in
  line to run a nationwide digital ID card scheme to be used in pubs and
  supermarkets.

  Fujitsu is expected to be granted a contract to handle an incoming
  system despite a pledge not to bid for new government business.

  The Telegraph understands that the company was given preferred bidder
  status in January 2023 – before the Horizon scandal [2]resurfaced at
  the start of this year.

  Hundreds of subpostmasters were wrongly convicted as a result of faults
  with the Fujitsu Horizon system used in Post Offices from 1999 onwards.

  In January, Fujitsu admitted that staff had known about bugs and errors
  for years and apologised for its role in the scandal.

  The company said in January that it [3]would not seek public sector
  contracts for the next two years as a penance for the Horizon scandal.
  Fujitsu said the tender process for the digital ID project began before
  it made the commitment.

  Fujitsu is expected to be granted a contract to handle an incoming
  system that would scan [4]digital IDs to check smartphone owners’ ages,
  meaning they do not need a driving licence or passport.

  The Government is consulting on legal changes that would allow digital
  ID cards stored on a smartphone to be used when buying alcohol from
  shops, pubs and self-service tills.

  Multiple companies will be able to issue the IDs but a single company
  is likely to provide the software to verify them through a smartphone
  app or barcode scanner.

  The three-year contract is believed to be worth less than £1m in total
  but providing the technology could be useful when selling hardware such
  as supermarket tills, which is a significant business for Fujitsu.

  The contract is being handled by the Proof of Age Standards Scheme
  (PASS), a Home Office-endorsed body that will handle the digital ID
  system.

  PASS is a private company funded by the age verification industry,
  meaning that taxpayer money is not involved.

  However, PASS is seen as a de facto regulator and the contract
  describes the system as “in effect strategically important national
  infrastructure”.

  Fujitsu said: “The tender process for this work started in May 2022 and
  Fujitsu submitted a bid in response to the tender in June 2022. The
  tender process and being selected as preferred bidder pre-dated the
  guidelines that Fujitsu has put in place regarding bidding for new work
  with customers in the public sector.”

  It is understood that rival companies are considering a potential
  contingency bid if Fujitsu’s role delivering the technology becomes
  untenable.

  The Age Verification Providers’ Association (AVPA), the industry body
  for age verification which includes Fujitsu among its members, said
  PASS should consider the findings of the public inquiry into the Post
  Office scandal when making its decision. The inquiry’s findings are
  expected later this year.

  An AVPA spokesman said: “We have worked with the Proof of Age Standards
  Scheme to reach a consensus across industry for the best technical
  mechanism to enable digital IDs, certified by PASS, to be universally
  accepted in any supermarket, pub or casino in the UK.

  “Using digital methods for age verification, both in person and for
  self-service tills, will not only be welcomed by a smartphone
  generation but also dramatically improve compliance rates and reduce
  the risk of conflict with staff.

  “Fujitsu emerged in 2022 as the industry’s preferred supplier through
  an open competition, but any decision to award a contract is for PASS,
  and we would expect their board to consider the findings of the public
  inquiry as part of their due diligence.”

References

  1. https://www.telegraph.co.uk/news/2024/02/10/post-office-scandal-horizon-ongoing-demand-money-fault/
  2. https://www.telegraph.co.uk/business/2024/01/21/post-office-horizon-scandal-fujitsu-uk-it-problems/
  3. https://www.telegraph.co.uk/news/2024/01/18/fujitsu-no-bids-government-contracts-post-office-inquiry/
  4. https://www.telegraph.co.uk/business/2023/12/16/bt-plots-role-digital-successor-id-card-scheme/