Shares of Fujitsu sank nearly 4% on Wednesday after the Japanese IT agency’s Europe co-CEO, Paul Patterson, mentioned compensating those that suffered due to the corporate’s defective software program was a “ethical obligation.”

The corporate, whose shares have been the second-largest loser on the Nikkei index, signaled it will compensate a whole lot of sub-postmasters wrongly prosecuted within the UK on account of its faulty software program.

Between 1999 and 2015, 736 sub-postmasters, who’re self-employed department managers beneath contract to the Publish Workplace, have been subjected to prosecutions and monetary misconduct convictions based mostly on inaccurate knowledge generated by Horizon, a software program program made by Fujitsu.

This case obtained new public consideration this yr when ITV broadcast a drama collection, “Mr Bates vs The Publish Workplace,” concerning the sub-postmasters combat for justice.

Horizon was manufactured by Fujitsu in 1999 and rolled out throughout Publish Workplace branches to handle monetary transactions. Complaints quickly emerged that it was falsely reporting money shortfalls.

Showing earlier than British MPs on the Home of Commons Enterprise and Commerce Committee, Patterson mentioned that “Fujitsu wish to apologize for our half on this appalling miscarriage of justice.”

“We did have bugs and errors within the system and we did assist the Publish Workplace of their prosecutions of the sub-postmasters,” he informed the committee.

When Patterson was requested how a lot Fujitsu ought to contribute in direction of compensation, he didn’t give an actual determine, however mentioned he anticipated to “sit down with the Authorities to find out our contribution to the redress” as soon as the inquiry was accomplished.

The federal government has put aside 1 billion kilos in compensation for victims of the Publish Workplace scandal.

Talking to CNBC’s “Squawk Field Asia,” Timothy Morse, founding accomplice of unbiased Japanese fairness advisory mentioned that it was “superb” that Fujitsu didn’t come up on this case till lately.

“This scandal dates again years. And the position of the submit workplace has been well-known in these court docket prosecutions, however Fujitsu for some purpose had been not often talked about within the press.”

In an announcement to CNBC, Fujitsu mentioned “the present Publish Workplace Horizon IT statutory Inquiry is analyzing advanced occasions stretching again over 20 years to grasp who knew what, when, and what they did with that data.”

The assertion additionally added that the inquiry has bolstered the devastating impression on postmasters’ lives and that of their households, and Fujitsu has apologized for its position of their struggling.” The corporate added it’s “absolutely dedicated” to supporting the inquiry “with a purpose to perceive what occurred and to be taught from it.”

Morse expects Fujitsu should shoulder a “cheap monetary burden,” however the firm might not must bear the entire 1 billion kilos that the British authorities has put aside as compensation.

On Jan.11, the BBC reported that regardless of the scandal and ongoing inquiry, the Publish Workplace paid Fujitsu over 95 million kilos to increase the Horizon IT system’s utilization for 2 years.

Fujitsu has not made a provision for the contribution but, however Patterson mentioned “once we get to that place we’ll completely must make a provision for it.”

When Morse was requested if the scandal meant that Fujitsu can be “persona non grata” for future UK authorities contracts, he mentioned that it “may very well be a risk.”

Nonetheless, he additionally highlighted that Fujitsu may be very near the UK authorities after its buy of British pc firm ICL in 1998, which provided computer systems to the British public sector.

“The title of Fujitsu has been tainted however … they’re very properly embedded in UK authorities IT contracts. So, really changing Fujitsu will be very costly.”