Understand Your Rights. Solve Your Legal Problems
There are still hundreds of people waiting for justice from the Post Office scandal where over 700 hundred sub postmasters were unfairly prosecuted. The system, Horizon created by Fujitsu was a faulty and unreliable system which was not taken accountability for by either Fujitsu or the Post Office when they knew where the blame should have been.
Fujitsu have now publicly apologised for their part and Paul Patterson, the Fujitsu Europe boss had announced to MPs that the firm has a “moral obligation” to contribute to the compensation, as reported by the BBC.
The Guardian inform us that the compensation is estimated to be up to £1 billion and the debate Is that this should not come from the taxpayer purse but rather the large corporations which are to blame for this being needed.
There are now three Post Office compensation schemes that have been set up for victims with over 4000 people told they are eligible for pay-outs.
The faulty system made by Fujitsu was more widely trusted by bosses both at the Post Office and Fujitsu than the people who worked for them every day. There were reports of bugs and errors when the system was first put in place in 1999 and yet these were all ignored.
Is Fujitsu still in business?
Despite the seemingly genuine apologies and pledges to address the issue, Fujitsu have not lost out on any business and is still deeply ingrained in the public sector. Fujitsu continue working with the Post Office and the £95 million contract has been extended until 2025.
On top of this, Fujitsu has continued winning over government contracts worth billions with HMRC, the Ministry of Defence and, the Department for Business, Energy and Industrial strategy.
This poses the question of whether we can trust the company to be so heavily embedded in the public sector.
Fujitsu and the government
Not only do they have business within important sectors they are also integrated in the government, donating £26,000 to labour and conservative to host ‘lounges’ at each party’s conference. The Guardian has reported the depth of the link that Fujitsu has with the government and that they are so embedded they may be getting off more lightly than they should.
Simon Blagden, the Fujitsu UK chair until 2019 is a long-term conservative donor and has been appointed UK health security agency advisory board and paid from the public purse.
Michael Keegan was the CEO and then Chair of Fujitsu and was a Crown Representative of the cabinet office, he was one of the officials who would oversee the relationship with public sector suppliers. Keegan held this position from 2019 until he stepped down in January 2024.
It seems that even if Fujitsu do the right thing and pay the compensation to the victims they still may have access to the public sector and to the high court meaning they may not be affected in the long run for the injustice they have caused.
What do you think should happen?
With a new digital age comes new possibilities and many are taking on the option of being a freelance lawyer. The possibility of remote work has spread worldwide into thousands of different sectors and lawyers are employing this idea too.
Finances online found that people between the age of 18 – 29 are 53% more likely to find a job using their smartphones.
Since the COVID-19 pandemic people are more likely to desire a better work-life balance and demand this in their jobs. For lawyers this is one of the biggest struggles with such a busy work life, but being a freelance lawyer can offer you more job autonomy.
Whilst working for yourself has some great perks it can also bring other stressors and unpredictability. You will have to work hard to build your own freelance business and profile whilst dealing with everything yourself.
Is being your own boss something you think you could do?
The benefits of being a freelance lawyer
Disadvantages of being a freelance lawyer
How to get started
White lab is an Italian healthcare testing and inspection platform company which with the assistance of Dentons, has acquired a competitor company, AgioMetrix.
White Lab is dedicated to consumer health providing high-quality testing, research and consultancy services. Their aim is to create the largest Italian network of laboratories and obtain an extensive network through the country which is committed to a healthier and more sustainable way of life.
AgioMetrix is based in Bologna and through the use of computed tomography and other metrological tests has been operating in the non-invasive testing. They have been testing products and materials whilst focusing on defect detection, dimensional checks and reverse engineering.
This acquisition will allow White Lab to see out their mission and become a point of reference in Italy for verification, analysis and certification services in the environmental, food and healthcare sectors.
AgioMetrix was advised by Rossini Advisory for the financial aspects of this acquisition.
Marco, tell us more about this acquisition and what your professional role was whilst working with AgioMetrix.My role was to follow the company in all phases, from the search for the correct investors to the negotiation with valorisation of the part and then all the DD.
I am an independent advisor, I have a lot of flexibility, I accurately understand the needs of each client coming from consultancy activity and before then from important top management experience.
“Every company I follow is the center of my universe. I study and understand the strengths and weaknesses.”
I am very excited by these types of projects. Italian companies have understood the importance of aggregation, of having partners who participate in the Dir Ischio Capital. At the industrial level (this is my true specialisation) these projects create transversal skills which are then unloaded on the reference market. I start from these projects, to put together activities that make not only economic sense but are industrially similar.
Italy is a country rich in SME’s, every entrepreneur is at the centre of his universe and every entrepreneur has great potential. This is not enough today to compete in the world market, this is why I consider the M&A area as strategic.
“There are no large or small companies, there are large or small projects. This makes a difference for me."
I support activities in many cases including at the business development level and this is another distinctive trait that distinguishes me from other advisory companies.
MARCO ROSSINI
Ellis Recruitment Group was founded in 2010 and has become a specialist in Oracle and SAP consultant placements with a strong presence in Europe and North America. Mobeus is now a minority shareholder and will provide guidance to the business to promote the growth in Europe and the US. With a £10 million investment from Mobeus, Ellis Recruitment Group are positive about their development. Tax advice including tax structuring and deal support, was provided to the selling shareholders of Ellis Recruitment by Tax Advisory Partnership, with the transaction being led by Helen Mallalieu and Russ Cahill.
“Tax Advisory Partnership was pleased to support the management team of Ellis Recruitment Group on this deal, which takes the business to the next stage of its development.”
www.taxadvisorypartnership.com
Equasens partnered with ARZ Haan, a German market leader for services and software solutions for healthcare providers. This partnership has acquired Apotheken Datenverabeitung (ADV) creating Pharmegest Germany. ARZ Haan have a holding of 6% whilst Equasens hold 94% allowing them to deploy their growth strategy in Germany.
ADV specialises in IT and software solutions for pharmacies as an independent software vendor. They are recognised in Germany for their high quality and range. This has allowed them to adapt their software solution perfectly to their market and to develop within the German healthcare sector which is having a transformation and leaning towards digital advancements.
Equasens specialises in the production of software solutions for the healthcare industry and is listed on Euronext Paris. Pharmagest Germany is going to invest and develop technology and technical building blocks along with a sales network which will reinforce ADV’s software offering.
LFR - Business Lawyers which are based in Munich advised ADV in the selling of their capital to Equasens.
LFR – Are you searching for trusted, experienced business representation in Germany
LFR - Business Lawyers which are based in Munich advised ADV with a team led by partner Dr. Christian Ruso and associate Tobias Kreth. The team advised ADV on all tax and corporate law aspects of the transaction, in particular regarding the structure of the SPA and the carve-out of subsidiaries.
BP has agreed to sell its shares in BP Turkey Refining Limited and also BP Petrolleri A.S. to petrol Ofisi, owned by Vitol. Petrol Ofisi is expected to a have a network of around 2,700 service stations in Turkey improving its presence in major cities. Gen & Temizer. Ozer provided legal advice to BP for this acquisition.
www.gentemizerozer.com
Matouk Bassiouny & Hennawy were the legal advisors for TSFE Infrastructure and Utilities Sub Fund (TSFE), for itself and acting on behalf of the New and Renewable Energy Authority (NREA), The Egyptian Electricity Transmission Company (EETC), and Suez Canal Economic Zone Authority (SCZONE).
TSFE negotiated an agreement entered into with ACWA Power to develop a project worth more than USD 4 billion consisting of facilities, among others, renewable energy power plants, and a green hydrogen/ green ammonia manufacturing facility. The agreement was signed in the new administrative capital with the Egyptian Prime Minister and Minister of Electricity and Renewable Energy present. With TSFE’s commitment to sustainable energy sources, Egypt is expected to play a leading role in the emerging green fuel market.
ACWA Power –a Saudi-listed joint stock company - aims to enable and accelerate large-scale production of green ammonia in Egypt.
Matouk Bassiouny & Hennawy team, led by Mahmoud S. Bassiouny, provided legal advice to TSFE during this agreement.
BIG CEE and RC Europe concluded an agreement for the sale and purchase of two retail parks in Serbia – NEST Obrenovac and NEST Kraljevo. Both boast a full occupancy rate of 100% and BIG CEE aim to focus on rebranding the shopping centres in the upcoming year. This acquisition allow RC Europe to develop their industrial park project, building the largest single building in Croatia. RC Europe received legal advice from the new major player in the Serbian legal ecosystem, Djokic + Partners team.
We are very pleased to have been part of this important project with our client RC Europe, it has been an exciting time for DJOKIC + PARTNERS. We are happy to have successfully overcome all chalanges faced during the implementation of this deal.
In 2023, M&A activity took place on the sidelines as we saw the lowest value and number of transactions since 2013. The value of M&A transactions decreased in value by 17% to 2.9 trillion making it the slowest full-year period for deal-making for a decade. There were over 55,200 deals made in 2023 which is a decrease of 6% compared to previous years and was a part of a 3-year low.
The Law Gazette reported that European M&A activity declined more than the global average with a fall of 28% whereas worldwide the decline was 13%.
City Firms especially are now counting on a recovery of M&A activity being driven by private equity along with a search for security.
In 2023, prices became a primary obstacle as sellers did not want to accept the prices potential buyers were requesting. Even the major strategic buyers were sitting on the sidelines and prioritising profitability rather than growth through acquisitions. Capital IQ data shows that Amazon, Alphabet, Apple, and Salesforce made only 4 acquisitions between them in 2023, comparing this to 2022 where 18 were made.
Seeing a rise for 2024
In Q4 of 2023, there were signs of recovery as 10 of the largest deals were announced, igniting hope for more in 2024.
Those that fell into the highest valuations in 2023 were the cybersecurity and AI categories. This will continue to be the highest-value area for transactions in 2024.
Small transactions are expected to make a quicker recovery for 2024 and we will see strategic and financial buyers being more active when it comes to these.
The future of M&A
Technology will be a top choice for dealmakers as Morrison Forester reports that technology accounts for 27% of deal value. Cybersecurity was chosen as the most promising subsector for deals for the year ahead.
With Pfizer's $43 billion takeover of Seagen in 2023, along with Daiichi Sankyo's $22 billion deal with Merck, healthcare was the third-highest sector by volume with North America experiencing its highest-level value ever.
Ambitions for technological advancement through M&A will likely fuel deal activity across multiple industries and allow for M&A to rise from 2023 figures.
Along with Technology, healthcare is also expected to surge in M&A activity as the demand for specialised expertise and innovative solutions is prominent. This will encourage companies to actively seek out acquisitions.
Morrison Forester reports that global private equity deals dropped 33% in volume and 41% in value as sponsors were being cautious in their M&A approach. Sponsors had to adjust their methods of dealmaking due to interest rates, and tightening credit markets which has meant that 91% of PE firms surveyed in the 2023 Tech M&A Survey do expect to use minority investments which is up from 55% from 2022.
In 2024 there will be a shift in strategy for the activity to rise and AI will aid in due diligence, streamlining business operations, identifying potential M&A targets, and automating various tasks associated with deal making.
Energy is also expected to be an area of focus as many turn to M&A to boost their competitive advantage and lead the trend. With the priority set to ESG, companies are looking to M&A transactions to improve and this will allow them to quickly make headway as leaders in the industry. The energy sector is attracting investment from a broad base but their challenge will be thriving in a climate driven by technology along with the climate anxiety felt by society, encouraging companies to make active decisions in favour of the environment.
Financial services are back to prioritising deal-making again in 2024 after the rising inflations and economic uncertainty of the past year. The aim will be to incorporate technology into their industry and create a modern and smooth way to change strategies.
We can expect a much more active year for M&A transactions in 2024.
The scandal that was recently brought into the spotlight due to the ITV drama, ‘Mr Bates VS the Post Office’ is causing a mass stir and a call for action.
The technological advancements brought to the Post Office in the form of an electronic system called, Horizon were the cause of many people facing prison or financial ruin. The system was put in place in 1999, created by a Japanese Company called Fujitsu and as early as 2001, bugs were detected.
In Dalmellington, a bug in the system created a £24,000 discrepancy for which the post office held the post office operator responsible. Between 1999 and 2015 there were more than 700 Sub-postmasters and Postmistresses that were prosecuted for false accounting and theft for which many faced prison sentences.
Despite the public inquiry for this beginning in February 2021, many are still fighting for their justice. Until now only 93 convictions have been overturned and, of them, just 30 people have agreed compensation settlements.
It was Paula Vennels who was the CEO of the Post Office between 2012-2019 and it was Ms Vennels who repeatedly denied there were any problems with the system.
The BBC reports that more than one million people have signed a petition for Ms Vennels to have her CBE stripped from her which was awarded in 2019 “for services to the Post Office and to charity.”
Paula Vennels has accepted her CBE being stripped from her and has offered it up, however, this falls to the King to officially declare.
What is being done for the Sub-Postmasters and Mistresses?
The postmasters during that time were dealing with faulty software and superiors who did not listen to their claims that Horizon was having issues.
The Metropolitan Police are now investigating the Post Office over potential fraud offences.
Some did not face a criminal conviction but rather were forced to pay the Post Office, many are suing and these cases have to be dealt with desperately.
The Government is trying to speed up the justice which those prosecuted and blamed deserve. The Guardian has noted that Rishi Sunak has announced a plan to pass a law that could quash the conviction completely. The idea of using legislation to allow those with convictions justice at a faster rate is said to be under “active consideration” by Justice Secretary, Alex Chalk.
It is looking promising that all those prosecuted, will be exonerated in the near future.
What are the options?
How are Fujitsu to blame?
The system, Horizon was brought to the Post Office to replace paper receipts with an electronic database and effectively reduce manual time and effort spent by the postmasters. During the inquiry in 2015, the Post Office told the House of Commons that,
"There is no functionality in Horizon for either a branch, Post Office or Fujitsu to edit, manipulate or remove transaction data once it had been recorded in a branch's accounts."
However, this turned out to be incorrect, as four years later during a high court case, the truth came out that Fujitsu staff could in fact access branch accounts and had “unrestricted and unaudited” access to those systems.
The company is expected to answer questions about the role it played in this scandal which is being described as the most widespread miscarriage of justice in British history.
With so many people affected by this and so many more sympathetic, there is an urgency to see justice. With this being an election year, no Party would want this hanging over their heads.
