The resignation of Hidenori Furuta, chairman of Fujitsu, has dealt a significant blow to the Japanese technology firm, which is already reeling from its involvement in the UK Post Office IT scandal. The company's shares plummeted by 2.5% on Tuesday after it announced that Mr Furuta had stepped down due to allegations of "woman-related inappropriate conduct", effective 16 June. This development comes as Fujitsu is in the midst of negotiating a settlement with the UK government, estimated at £1.5 billion, over its faulty Horizon accounting software.
Fujitsu confirmed in a stock market filing that its board of directors became aware of the alleged misconduct, prompting Mr Furuta's resignation request. The company has also withdrawn his candidacy for a non-executive director role at its upcoming annual shareholders' meeting later this month. Notably, Fujitsu has yet to contribute to the compensation bill, which has largely been borne by UK taxpayers.
The Horizon system, supplied to the Post Office, was found to be flawed and led to thousands of sub-postmasters being accused of embezzlement, with approximately 900 wrongfully convicted of theft and false accounting. Despite acknowledging its awareness of the system's flaws since the 1990s, Fujitsu has yet to provide significant financial support for those affected.
Mr Furuta's resignation follows a trend in Japan, where executives have faced consequences for allegations of inappropriate behaviour towards women. This includes high-profile cases at Honda and Eneos, Japan's largest oil refiner. The development adds pressure on Fujitsu as it seeks to maintain its position in the global IT services market.
Meanwhile, the Post Office is making progress in replacing the Horizon system, with Accenture and OneView Commerce securing contracts to implement a new accounting system. As Japan's largest IT services company, Fujitsu is expected to play a significant role in Prime Minister Sanae Takaichi’s national strategy to advance in artificial intelligence and reduce reliance on US technology.