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Fujitsu has agreed to suspend bidding for UK public contracts pending the conclusion of a public inquiry into the Post Office Horizon scandal.

Alex Burghart, Cabinet Office minister, told MPs that the government had on Thursday received a letter from the Japanese company “voluntarily undertaking not to bid for government contracts”.

Fujitsu developed the flawed accounting software at the heart of the Horizon affair that resulted in more than 700 sub-postmasters being convicted of charges including theft, fraud and false accounting in cases brought by the Post Office between 1999 and 2015.

The public inquiry into the scandal is taking evidence from Fujitsu staff, including senior executives. It is expected to conclude taking evidence this summer.

On Tuesday Fujitsu’s Europe chief executive Paul Patterson said the company had a “moral obligation” to help fund redress for sub-postmasters, but did not say how much Fujitsu would pay.

“Based on the findings of the inquiry, we will also be working with the UK government on the appropriate actions, including contribution to compensation,” Fujitsu said on Thursday.

The government has set aside £1bn for compensation.

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