Fujitsu, the technology company tied to the Post Office Horizon scandal, is still being allowed to bid for UK government contracts and has continued to secure public work worth millions of pounds. The issue has sparked fresh political criticism because the company has not yet paid compensation to affected sub-postmasters, according to the report.

The Horizon scandal, which ran from 1999 to 2015, is widely seen as one of the biggest miscarriages of justice in Britain. Hundreds of sub-postmasters were wrongly prosecuted after problems linked to the Post Office IT system, creating a long-running national controversy over accountability, redress and the role of major suppliers.

The latest scrutiny focuses on whether the government should keep doing business with Fujitsu while compensation remains unresolved. The question is especially sensitive for Labour because opponents are using the case to argue that ministers have not taken a tough enough line with a company associated with one of the UK's most damaging public scandals.

The row adds to wider concerns about how government procurement should deal with firms connected to major failures. For many critics, the core issue is whether a company at the center of the Horizon affair should remain eligible for new public contracts before the victims have received the compensation they are still seeking.