• The Hatchet Man: Aujard gives evidence

    That’s Aujard as in “O, jar” doncha know (usher Jane giving the oath)

    Chris Aujard presents as thoughtful, intelligent and professional – a very different person to the one boasting about his crisis management skills shortly after leaving the Post Office in 2015. Older and wiser, perhaps, or better at image projection.

    Aujard was involved in a deliberate attempt to frustrate Second Sight’s independent investigation into the Post Office, so I’m not going to apportion him much credit, but given some of the truly appalling human beings who have provided evidence to the Inquiry in recent months (hi, Rodric) he did, at least, deserve to be taken seriously.

    Aujard’s great revelation was about Paula Vennells (the Post Office CEO) and her desire to keep prosecuting Subpostmasters beyond 2013. It came after we discovered he had made a recommendation to the Post Office Executive Committee on 12 November 2013 that the Post Office stops prosecuting. When asked why, he said it was “partly informed by both a personal view and a professional view.”

    His professional view was that he did not think “prosecuting was the appropriate way for commercial organisations to deal with their agents”. To give context, Aujard said he came from a financial background “where these types of matters are dealt with in a civil court” or “an HR process”. His personal view was that he “felt that criminal prosecutions caused great distress and anxiety and didn’t have a place in a business such as the Post Office.”

    This, in itself, was a principled stand for an interim appointee to take, and it was adopted by the Post Office’s Executive Committee – which obviously included Paula Vennells – there and then. Astoundingly, at an Audit and Risk Committee (ARC) meeting a week later, Aujard reports Paula Vennells “resiling” from this view. Aujard told the Inquiry Vennells “interjected, or made the comment” that stopping prosecutions entirely was not what the Post Office should be doing. Instead there should be “limited prosecutorial activity” allowing the Post Office to undertake “some prosecutions”.

    In his witness statement, it is minuted the ARC felt a change in prosecution policy:

    “might affect the progress of mediations by ‘raising questions on previous prosecutions, and there was an obvious reluctance to cease prosecutions as ‘in their view this acted as a deterrent’.”

    Aujard states Vennells said the Executive Committee view:

    “was not that POL [Post Office Ltd] would ‘never bring prosecutions, but that [POL] would be more circumspect in the cases it chose to take’.”

    Given Vennells was singled out by Alan Cook as the person who signed off on spending £300k to go after Lee Castleton for a £26k discrepancy, you have to wonder quite what she gets out of putting helpless under-resourced people through the criminal and civil justice system. And shamelessly misrepresenting agreements made in Executive Committee meetings. We have yet to hear Ms Vennells’ point of view on either of the above allegations.

    Keeping the lid on a scandal

    The other two main lines of questioning today concerned Aujard’s failure to hand important information about Horizon’s bugs and poor security over to the Post Office’s contracted criminal law firm Cartwright King (so they could advise on whether or not to disclose them to convicted Subpostmasters), and his attempts to close down or limit Second Sight’s investigation into the Horizon IT system and Post Office business processes.

    Sam Stevens, asking the questions

    We know from recordings made of conversations between Second Sight and Chris Aujard that shortly after his arrival he was told explicitly about likely miscarriages of justice. He didn’t seem that bothered then, and during his questioning today he seemed very keen to distance himself from any prosecutions before his time, telling the Inquiry he was assured by Jarnail Singh and others it was all in hand.

    It is unfortunate the Inquiry chose not to focus on Aujard’s experience of sitting in on the Complaint and Mediation Scheme Working Group meetings and his apparent determination to limit the scope and direction of Second Sight’s investigations (at the Post Office’s instruction), because that, frankly, is where he did the most damage. 

    I am also not alone in being disappointed he was not once asked by the Inquiry to step back from considering the day-to-day management of his in-tray to reflect on the wider nature of the complaints being raised by the Subpostmaster applicants to the Mediation Scheme.

    Aujard had the power and influence to do the right thing. Instead he seemed to spend his time trying to manage Second Sight away from their pursuit of the truth, because of a belief within the Post Office that Ron Warmington and Ian Henderson had gone from being independent investigators to “campaigners” on behalf of Subpostmasters. Or as any sane person would have it, they were not prepared to subscribe unthinkingly to the Post Office’s (flat) worldview.

    Tweets and Screenshots

    You can relive the day’s events by having a scroll through my tweets from today formatted for this website in a single by ThreadReader. It features screenshots and hopefully cogent explanations of some of the day’s big documents. It starts with the remainder of Susan Crichton’s evidence before Aujard begins. As Janet Skinner noted, Crichton seemed to wake up a lot more helpful today than she was being yesterday:

    I admit I was less measured about Crichton’s evidence than I have been about Aujard, which you might see as being unfair. Maybe I was hoping Crichton would give us some genuine insight and revelation and I vented in disappointment when she didn’t. I was expecting what we got from Aujard, and was actually quite impressed he made his mark on the issue of prosecutions. Nonetheless, Crichton tried to do the right thing, and came up against a board determined to discredit her for doing so. Aujard carried out that board’s instruction to the letter, demonstrating even less empathy for the victims of this scandal. Apologies for a possible expectation-based failure to be even-handed.

    I guess Aujard and Crichton’s Post Office experiences also show how an amoral operator can thrive in a malign corporate environment far better than someone who approaches a problem with good intentions. Which is a worry for all of us.

    Aujard will be coming back to the Inquiry to answer questions from representatives of other core participants at an unspecified date.


    I am currently touring Post Office Scandal – the Inside Story. Please do come and see us as we make our way around the country (all dates here).


    The journalism on this blog is crowdfunded. If you would like to join the “secret email” newsletter, please consider making a one-off donation. The money is used to keep the contents of this website free. You will receive irregular, but informative email updates about the Post Office Horizon IT scandal.


  • The Bleatings of a Sorry Scapegoat: Lady Susan’s Pity Party

    Susan Crichton

    Susan Crichton cut a sorry figure at the Inquiry today. A woman apparently trying to do the right thing, but not trying hard enough. A woman whose stated intentions were not borne out (and occasionally downright contradicted) by the documentary evidence. A woman who came up against a company board more interested in reputation management than the truth, and who, instead of raising the alarm, imploded and walked away.

    If you want to read it blow-by-blow, with added documentary evidence, you can, here, on a formatted tweet thread in the live tweets section of this website.

    I find it difficult to have sympathy for Crichton. She wanted to do the right thing, which was manage the delivery of Second Sight’s independent (Interim) report, and to some degree she succeeded. She also colluded with her client, the Post Office, to change the language both in the Interim Report (a late draft was considered too “emotional”) and around it (Second Sight – and Fujitsu’s – references to “bugs” were regurgitated by her in external and internal Post Office comms at the suggestion of CEO Paula Vennells’ husband as “exceptions” or “anomalies”). Crichton even sought, on behalf of the Post Office, advice on whether Second Sight could be sued for defamation, or whether the Post Office could injunct their report.

    Some time ago I spoke to Second Sight’s Ron Warmington about Crichton and whilst he admitted being “perplexed and puzzled” by her ten year silence on leaving the Post Office in 2013, he maintains she was “one of the few people with integrity” within the Post Office. According to Ron, she pushed for an independent investigation, and once Second Sight had been selected she “did what she could” to “protect” them from the malign forces within the Post Office trying to shut them down.

    His word carries far more weight than mine, but from her evidence today, it seems Crichton was also far less interested in what had happened to the Subpostmasters than she was about her own career. Once Alice Perkins (the Post Office chair) had decided to make her a scapegoat for failing to manage the Second Sight report into something more palatable, Crichton got out as quickly as she could. She then sat on what she knew without (as far as we know) doing anything to bring the plight of the Subpostmasters to light publicly, or privately. I find this surprising, if not reprehensible. She had experienced the Post Office’s mafia culture first hand and come off worse, but unlike the Subpostmasters, she got away with a tidy settlement and her reputation intact.

    I would like to have asked Ron what he made of Crichton’s evidence, but he’s in purdah, awaiting his own evidence session on 18 June.

    The board want to sack Second Sight

    Second Sight’s Interim Report was issued on 8 July 2013. Two days later a Bond Dickinson lawyer attending a meeting with Crichton notes that “The board want to sack SS [Second Sight] and of course are now not coping well with the fact that they are independent.”

    The lawyer, Simon Richardson, also notices:

    “There was generally an overall defensive air and the board are also feeling bruised. There are tensions between people and that includes Alice Perkins (the Chair), Paula Vennells (CEO) and SC [Crichton].”

    When asked why, Crichton told the Inquiry that she felt she was being accused of “not managing the process properly” – ie failing to get the independent investigators deliver the result the Post Office wanted.

    We are then taken to the minutes of a Post Office board meeting on 16 July 2013, during which Crichton stood outside waiting to deliver her findings into the fallout from the Second Sight report. At Alice Perkins’ request, she was not invited in. Paula Vennells delivered the findings instead. Crichton is informed by Alwen Lyons, the Company Secretary, that she is no longer required. She is humiliated. It is the beginning of her end.

    Perkins takes aim

    The Inquiry was taken to a note of a meeting between Crichton and Perkins made by Perkins. Perkins tells Crichton:

    “the Second Sight interim report and the timing of its publication had been potentially very serious indeed for the Post Office in terms of our national reputation and the effect it could have on our funding negotiations with the Government. In the event, it had not come out so badly partly because of the way the Minister had handled her statement in the House of Commons. But it had been very worrying at the time.”

    Perkins note continues:

    “I understood that Second Sight’s investigation had to be independent but in the civil service there would have been someone marking it who was close to all the key people (SS, JA [James Arbuthnot], JFSA [Alan Bates’ Justice for Subpostmasters’ Alliance]) and knew what was going on between them.”

    Perkins also blames Crichton for getting Second Sight appointed, despite Crichton stepping back from that process because she knew Second Sight MD Ron Warmington from working with him at General Electric.

    Second Sight’s reward for getting their report over the line is outlined in an internal email from Perkins to many of the senior leaders within the Post Office on 31 July 2013 which states:

    “while it is clear that we are committed to using SS for the 47 [Subpostmaster] cases which are already in the frame for their review, it is extremely important that we cap their involvement at that. The moment they are involved in additional cases beyond these, we will have lost the ability to end the relationship with them – an outcome which I do not want to have to contemplate.”

    So much for her commitment to the truth, or indeed any concern for the Subpostmasters.

    The inquiry then dwelt on Crichton’s highly confused handling of the Shredding Advice and her inability to properly explain away the actions and emails of her direct report John Scott, who allegedly issued an order to shred minutes of a Horizon issues meeting after Crichton allegedly said she wanted to keep things below the radar.

    Yelling at Paula Vennells in a Costa

    Finally we came to an extraordinary document made by Paula Vennells detailing two meetings she had with Crichton. In the first, Vennells meets Crichton on what is documented as 30 Sep 2013, but which Crichton and counsel to the Inquiry Julian Blake agree must be 30 August 2013. The two execs are in a Costa Coffee in Old Street. Vennells says she discusses the need to “right the wrong” of Crichton’s actions.

    Crichton was apparently “very very angry. She yelled at me” reports Vennells. The anger stems from Vennells’ failure to send Crichton the terms of reference for an internal “lessons learned” review, presumably set up to ensure no-one at the Post Office inadvertently lets the truth out of the bag ever again. Crichton felt again she was being scapegoated for “not managing the process properly”, that is, letting Second Sight do their jobs. Vennells writes:

    “She shouted that she was looking at other jobs. She threatened that we would have to back her – implying the importance of references.”

    It doesn’t sound pretty. Crichton claims no recollection of the meeting at all, but says the behaviour described is out of character, especially in a public place.

    There follows Vennells’ killer paragraph:

    “My reflection on what happened with SS as I write this today (2/9/13), is that Susan was possibly more loyal to her professional conduct requirements and put her integrity as a lawyer above the interests of the business. She did not communicate clearly what she was concerned about. If as she says she felt compromised (personally and for the business) by being asked to manage SS more closely, then her misjudgement was that she did not make that clearer to me on the two or three occasions that I asked her to do so.”

    Heaven forfend Crichton should put her personal or professional integrity before the Post Office. Professor Richard Moorhead has already seized on this as an indictment of Vennells’ appalling leadership and judgment. But what I would add is that whilst Crichton was clearly under huge amounts of pressure for having allowed Second Sight to open a can of worms, she was partly compromised by her own behaviour.

    Crichton’s personal integrity was very much missing when she was seeking advice on suing or injuncting Second Sight, or getting them to tone down their report for being too emotional, or failing to investigate John Scott or reacting more firmly to the explosive first Clarke Advice. She only clung to her integrity when the gangsters running the show turned on her. No matter how she tried to paint her conflict with the Post Office board as a noble stand, Crichton’s evidence today amounted to little more than a personal pity party…

    … which continues into tomorrow. Paula Vennells is up for three days beginning 22 May and Alice Perkins is up for two days beginning 5 June.

    Singh’s light coital relief

    Post Office comedy lawyer Jarnail Singh‘s mangling of the language got a laugh in the Inquiry today as he put up a spirited defence (in 2012) of the Post Office’s need to keep prosecuting Subpostmasters despite the evidential basis for doing so looking ever weaker. We think he meant “capitulation”:

    A special anniversary

    Today is the third anniversary of the quashing of 39 Subpostmaster convictions at the Court of Appeal. Here is Janet Skinners’ take:

    Here’s a link to my newsletter from that day, my blog post and picture gallery.

    I am currently touring Post Office Scandal – the Inside Story. Please do come and see us as we make our way around the country (all dates here).


    The journalism on this blog is crowdfunded. If you would like to join the “secret email” newsletter, please consider making a one-off donation. The money is used to keep the contents of this website free. You will receive irregular, but informative email updates about the Post Office Horizon IT scandal.


  • The Second Sight Interim Report

    Ron Warmington (l) and Ian Henderston (r)

    I’ve been talking a lot recently about Second Sight’s Interim Report, written by Ron Warmington and Ian Henderson. It is a game-changing, short, easy-to-read document, released on 8 July 2013 which sets out all of the Post Office’s problems to them in clear language.

    It used to be published on the Post Office website, but it isn’t any more.

    I am sure you can find it on the internet somewhere, but I thought it made sense to post it here. If you’ve never seen it before, it’s worth a read or a download.

    I also did a fisking of the Interim Report in 2013 for a very old personal blog. Do have a read of that if you’re interested.

    I am currently touring Post Office Scandal – the Inside Story. Please do come and see us as we make our way around the country (all dates here).


    The journalism on this blog is crowdfunded. If you would like to join the “secret email” newsletter, please consider making a one-off donation. The money is used to keep the contents of this website free. You will receive irregular, but informative email updates about the Post Office Horizon IT scandal.


  • Penny’s Printouts

    Penny Williams

    This is Penny Williams. Penny ran the Manaccan Post Office in Cornwall between 2007 and 2013.

    I have just come off stage with Penny at Launceston Town Hall where she spoke about her experiences at the hands of the Post Office.

    During our conversation, Penny revealed she has paper evidence of what appears to be fraudulent back-end transactions at her Post Office. That is, computer printouts showing that money was withdrawn from her accounts, over a period of twelve months to 2013, during times when the branch was closed and no one was logged on to her Horizon IT terminal.

    The Story

    After a successful tenure as Manaccan Subpostmaster, Penny was selling up. She had run the branch without a problem for six years and fancied a change.

    In September 2013, whilst she was away supply teaching, Post Office auditors descended on her branch and started an audit. Penny was contacted by phone after the audit and told she was £20,000 short. Penny was suspended pending an investigation. The Post Office wanted to know how she proposed to settle the outstanding amount.

    Penny was alarmed. She had been audited eighteen months previously and there were no problems. Rather than settle the amount, Penny asked the Post Office to show her how and where this discrepancy had arisen. The Post Office refused, instead they invited her to interview under caution. 

    Penny asked if she could bring her lawyer. The Post Office again refused, so Penny declined the invitation and reiterated her suggestion the Post Office provide her with evidence of the negligence, carelessness or error which caused the £20,000 deficit. Penny used to work for Morgan Stanley.

    Penny on stage in Launceston

    That’s not to say she wasn’t in some distress. Penny knew the St Keverne Subpostmaster, Sue Knight, who was being prosecuted by the Post Office. Penny rang Sue and Sue put her in touch with Alan Bates from the Justice for Subpostmaster’s Alliance. Alan put Penny on his mailing list and told her to make sure any communication and correspondence from the Post Office went through her lawyer.

    Penny began to receive letters from the Post Office’s debt recovery team, who demanded she give them £20,000. Penny held out, but her suspension had an immediate effect. The deal to sell the Post Office fell through. Rumours she was a thief spread round the community. People stopped coming into her shop and the pub she ran as a tenant landlady. Her income dried up. 

    The mysterious packet

    Whilst all this was happening, Penny received a packet in the post. A brown envelope filled with dot-matrix computer printouts which appeared to be financial data relating to her branch. There was no covering letter.

    Penny recognised some of the transaction data, but there was a lot of information requiring a proper forensic examination. She gave it to her sister, who worked in the payroll department of a major UK plc. Penny’s sister and her boss, a qualified accountant, began to work through the documents. According to Penny, they established beyond doubt that over the months covered by the printouts, during periods when the branch was closed, hundreds of small debit transactions (Penny mentioned a recurring £29 and the occasional £14.65) were being made at her branch. They added up to more than £16,000. 

    In 2014, Penny was made bankrupt by HMRC. Her pub was taken from her. Due to the internal ramifications of the independent investigation by Second Sight, the Post Office had decided to stop prosecuting people, so she was “lucky” in that respect (Sue Knight’s prosecution was dropped because, she was told, it was no longer in the public interest, without further explanation).

    Penny was left to pick up the pieces of her life and career, which she did by continuing to teach, eventually turning her hand to pie-making. Penny’s Pies has become a successful business with a shop in Falmouth, an outlet at the Great Cornish Food Store in Truro and a dedicated pasty and pie-making facility in Helston (pictured).

    Penny still has possession of the computer printouts. She still doesn’t know who sent them or why. I have asked if I can possibly have sight of them. If they corroborate her sister’s interpretation, she is sitting on a national news story and possibly the first concrete evidence of internal fraud at the Post Office during the Horizon IT scandal. 

    Penny, who very kindly brought some of her delicious pasties for us to sample after her talk, has said she will try to dig out the documents as soon as possible.

    I am currently touring Post Office Scandal – the Inside Story. Please do come and see us as we make our way around the country (all dates here). I’ll be at the Acorn in Penzance with Penny once more at 7.30pm tonight. Come and hear her story.


    The journalism on this blog is crowdfunded. If you would like to join the “secret email” newsletter, please consider making a one-off donation. The money is used to keep the contents of this website free. You will receive irregular, but informative email updates about the Post Office Horizon IT scandal.


  • Lord Arbuthnot and the Lies

    James Arbuthnot

    The former MP who started the Parliamentary campaign to help Subpostmasters in their fight for justice, gave evidence at the public inquiry into the Post Office Horizon IT scandal on Wednesday.

    James Arbuthnot told inquiry he was first alerted to potential problems with the Horizon system during a coffee morning in his constituency, in 2009, when he was introduced the former sub postmaster Jo Hamilton.

    Arbuthnot at first attempted to raise Hamilton’s case with the government, specifically the Secretary of State for Business, Peter (now Lord) Mandelson. Arbuthnot received a “frustrating” response from Mandelson’s junior, Pat McFadden, effectively washing the government’s hands of the Post Office business, despite being its sole shareholder.

    Undeterred, Arbuthnot founded a group of MPs who also had constituents claiming they had suffered life changing problems as a result of their interactions with the horizon IT system, and the Post Office’s punitive practices.

    They eventually found themselves, in 2012, face-to-face with Paula Vennells and other senior executives at the Post Office. None of the execs would entertain the idea that there was anything wrong with the Horizon IT system. Paula Vennells went one further. According to the minutes of the meeting, Vennells told the MPs:

    “Every case taken to prosecution that involves the Horizon system thus far has found in favour of the Post Office.”

    Demonstrably false

    Jason Beer KC, who was asking Lord Arbuthnot questions on behalf of the Inquiry, queried this in a series of important rhetorical questions which neatly summarised, and devastatingly undermined Paula Vennells’ assertion.

    Jason Beer KC

    JB: Would you agree overall that this is a fair summary: the problem is that a small number of postmasters borrow money from the till; the problem is not Horizon; every prosecution involving Horizon has found in favour of the Post Office; and not a single case existed where, on investigation, the Horizon system was found to be at fault?
    JA: Yes.
    JB: I think it follows that Alice Perkins, Paula Vennells, Angela van den Bogerd and Alwen Lyons did not disclose to you and the other eight MPs or their representatives the following: firstly, anything about the
    Julie Wolstenholme case…
    JA: No, they didn’t.
    JB:… in which expert evidence had been served by a man called Jason Coyne concerning bugs in the Horizon system and which case was subsequently settled by the Post Office?
    JA: They didn’t disclose that, no.
    JB: They didn’t mention the case of Lee Castleton and the obtaining of a report from BDO Stoy Hayward, which had found errors in the operation of the Horizon system?
    JA: No, they didn’t.
    JB: They didn’t mention the acquittal of Maureen McKelvey by a jury in 2004, Mrs McKelvey having blamed Horizon for the causing of losses of money which she was accused of stealing?
    JA: No, they didn’t.
    JB: They did not mention the speedy acquittal of Suzanne Palmer by a jury in 2007, Mrs Palmer also having blamed Horizon at trial for the losses attributable or said to be attributable to her?
    JA: No, they didn’t.
    JB: A jury question directed at the Post Office to the effect of “What is Mrs Palmer supposed to do if she didn’t agree the figure that Horizon had produced”, which the Post Office had been unable or unwilling to answer, and an order that the Post Office pay £78,000 in costs?
    JA: No, they didn’t.
    JB: They didn’t mention any of the following bugs, all of which had been discovered and notified to the Post Office by this time, the Callendar Square bug – sometimes known as the Falkirk bug – operative, by the Post Office’s admission, between 2000 and 2006 and, on the findings later of Mr Justice Fraser, until 2010?
    JA: No, they didn’t mention.
    JB: They didn’t mention the receipts and payments mismatch bug of 2010?
    JA: No.
    JB: The suspense account bug that was operative between 2010 and 2013?
    JA: No.
    JB: They didn’t mention the Dalmellington bug, operative from 2010 and the fact that it was still operative at the time of this meeting?
    JA: No.
    JB: They didn’t mention the remming in bug operative in 2010 or the remming out bugs operative in 2005 and, again, in 2007?
    JA: No.
    JB: They didn’t mention the local suspense account bug operative in 2010?
    JA: No.
    JB: The reversals bug operative in 2003?
    JA: No.
    JB: The Giro bank discrepancy bugs operative in 2000, 2001 and 2002?
    JA: No.
    JB: They didn’t mention that consideration had been given to the commissioning of an independent expert review and report on Horizon in December 2005, and again in March 2010, but that on each occasion the Post Office had decided against it, on the latter occasion seemingly on the grounds that it might be disclosable in criminal proceedings?
    JA: They didn’t mention that.
    JB: They didn’t mention problems with the so-called ARQ data and whether those issues should be revealed to criminal courts who are hearing criminal charges against subpostmasters based on ARQ data and of which the Post Office had been notified?
    JA: No.
    JB: Does it follow that your state of knowledge at this time, based on what the Post Office board member and executive members were telling you, was that you were unfair of any bugs, errors or defects which had been detected in Legacy Horizon or which were then evident and emerging in Horizon Online?
    JA: Yes, I was unaware. I think we were all unaware, but Mike Wood was raising the question: is this the only absolutely perfect computer program in existence?
    JB: You were unaware of the problems with the so-called ARQ data…
    JA: I was.
    JB: …and its presentation to criminal courts?
    JA: Yes, completely unaware of that.

    I was surprised Mr Beer had not mentioned Nicki Arch’s acquittal in 2002. So was she. As Ms Arch was in the room, she approached Beer during the break. After the break, Beer resumed his questioning of Lord Arbuthnot thus:

    JB: Lord Arbuthnot, in my list of 16 or 17 things that were not mentioned to you against being told that every prosecution involving Horizon had found in favour of the Post Office and that not a single case existed where on investigation the Horizon system was found to be at fault, I omitted to include one, that of Ms Nichola Arch, who was acquitted [in 2002], so, very early on. Was that something that was mentioned to you?
    JA: No, that was not something that was mentioned to me.
    JB: I had mentioned the jury acquittal in 2004 of Maureen McKelvey and the jury acquittal of Suzanne Palmer in 2007, that’s a third jury acquittal not mentioned.
    JA: Right.
    JB: In that list of 16, now 17, issues that were not revealed to you at the meeting that we were talking about in mid-June, does the same apply to all of the meetings you had with senior Post Office managers, and by that I mean the meeting with Alice Perkins and Alwen Lyons on 13 March 2012?
    JA: Oh yes, the same applies. I was not told “Here is a list of bugs that you ought to take into account”, no. They failed to do that.
    JB: I might divide it into three. One is civil and criminal cases, the second is bugs and the third is consideration in the past of independent investigations?
    JA: Absolutely. They did not do that.
    JB: Does the same apply to the meeting with Alice Perkins and Paula Vennells on 17 May 2002?
    JA: Yes.
    JB: In all of this time, did any of them ever mention the facts and matters which I’ve listed, 16 or 17 of them?
    JA: No.

    Funny that.


    The journalism on this blog is crowdfunded. If you would like to join the “secret email” newsletter, please consider making a one-off donation. The money is used to keep the contents of this website free. You will receive irregular, but informative email updates about the Post Office Horizon IT scandal.


  • Phase 5 & 6 curtain-raiser: Alan the Man

    Alan Bates.

    Founder of the justice for Subpostmaster alliance Alan Bates today gave evidence to the public inquiry into the Post Office Horizon IT scandal. 

    The Inquiry has resumed withafter a five week break, and is now entering a four month period of hearings, combining phases five and six of the planned seven phases. Phases 5 & 6 will take in the 2013 Complaint Review and Mediation Scheme, conduct of the group litigation, governance, stakeholder engagement, oversight and whistleblowing, amongst many other matters.

    Disclosure failings again

    The proceedings were prefaced by a short introduction from the Inquiry’s lead barrister Jason Beer KC who told the chair, Sir Wyn Williams, that the Post Office, despite warnings which now carry criminal sanction, was still failing in its obligations with regard to disclosure of information.

    In fact it transpires that The Post Office had recently dumped 67,000 documents on the Inquiry, which may be of relevance to this phase of the enquiry.

    Beer told the Inquiry that the Post Office was under written instructions to provide all documents “created by, sent to, received by, recorded in a conversation or meeting, or otherwise made reference to 19 specific individuals within The Post Office” including, but not limited to “Paula Vennells, Alice Perkins, Alwen Lyons, Angela Boon Beard*, Tim Parker and Susan Crichton”.

    It transpired today that a number of documents created by or sent to the personal assistants of many of the senior executives were part of this latest chance of disclosure and therefore considered relevant. 

    Jason Beer KC

    The Post Office also sent a series of letters to the inquiry indicating that five separate disclosure reviews were still ongoing, which may yet bring to light documents relevant to witnesses giving evidence this month.

    Beer told Sir Wyn: “The issues that the post offices disclosure to this enquiry have presented has been much more than minor ad hoc or additional disclosure” and were “very concerning.”

    “These developments are,” he added “to use a parliamentary word, unwelcome.”

    Sir Wyn was undeterred: “We’re going to carry on”, he announced, noting “there may be occasions in which witnesses are giving evidence, and documents haven’t caught up with witnesses, so to speak, and that is a highly undesirable state of affairs.”

    That could be “cured” he said “albeit with some cost to the witness, by recalling them if necessary… the alternative to have a substantial break and… that is not desirable”.

    And so, on to the star of the show…

    Watching Alan

    The inquiry hearing room listening to Alan Bates give evidence, with Jo Hamilton sitting front and centre

    One of the most telling revelations about Alan Bates’ first (and likely only) session before the inquiry was the extent and speed with which he had grasped the problems with Horizon and the manner he went about giving the Post Office management clear and specific pointers as to where those problems might lie.

    The documentary evidence brought up by Jason Beer over the course of the hearing told the story very clearly. 

    Given his experience using electronic point of sale (EPOS) and accounting systems before he became a postmaster, Alan Bates welcomed the arrival Horizon in 2000, but after a few weeks of use he became grimly aware of the errors and shortcomings with the system. He detailed them in writing to post office management. He was also alive to the dangers of taking any action which could be seen to accept responsibility for accounting variances which he disputed, and he saw the power imbalances written into the postmaster contract.

    Despite his repeated requests for help, there did not seem to have been a single attempt to engage with him on the specifics he was raising. 

    The Post Office management for their part either ignored Alan’s request for help or miss equated his responsibilities under the postmaster contract.

    Beer asked: “Was there any effort by the Post Office to engage with the points that you were making in this letter?” 

    Bates replied: “None at all… [they] never addressed them”

    Bates in a rare moment of levity

    In the letters that were posted on the screen during Alan’s questioning today, we got a picture of a man who was polite, diligent, intelligent and hoping to work with the Post Office to determine the source of his discrepancies, fix the obvious errors within the Horizon system which were throwing up these discrepancies and resolve them to all parties’ satisfaction. 

    The Post Office, through its responses (and lack of them), exhibited a total disinterest in his situation, other than when it came to demanding money or threatening him with disciplinary action. 

    Even when it became apparent the Post Office was not going to listen, Bates proposed a fair resolution to the situation: 

    “I said ‘if you’re unhappy with the way that I’m providing your service then pay us back our initial investment and take the Post Office away’. I would’ve been quite happy for them to do that, and I probably wouldn’t be sitting here today.”

    Alan and his partner Suzanne’s investment in their branchwas around £100,000. The Post Office’s refusal to consider his offer to part company on equitable terms, has cost it and the government (and the taxpayer) hundreds of millions of pounds.

    “They didn’t like me standing up to them”

    Beer asked Bates what he understood to be the reason for the termination of his contract

    He replied: “Basically, I think it was because a) they didn’t like me standing up to them… b) they were finding it awkward and c) I don’t think they could answer these questions, and I was going to carry on.”

    After being told his contract was going to be terminated, Alan Bates went to the top, writing to Allan Leighton, Chairman of the Royal Mail plc, which in 2003 was the Post Office’s parent company. In his letter Bates complained about the Post Office’s “Stalinistic” management approach, “in order to bludgeon its will onto the poor Subpostmasters”.

    Bates determination to see justice done shines through:

    “Unlike the Post Office,” he writes, “I do not have endless funds to fight this injustice through the courts, but I do realise it is imperative for as many people as possible to have an opportunity to see in detail the management style applied by Royal Mail Group to the very public face of the local Post Office.”

    Bates tells Leighton he is setting up a website called  postofficevictims.org.uk, and he will be soon putting a hoarding outside his branch, with the name of the website on it. 

    The Post Office’s response was to conduct what Bates called a “tick box exercise”, stating that his contract had been terminated perfectly properly. And so our doughty campaigner’s path was set, gunning for justice for the next two decades, working between 30 and 40 hours a week. As he told the Inquiry:

    “I didn’t set out to spend 20 years doing this. I hadn’t expected to be doing this so much by myself but it got more and more complex and it was harder and harder to share out and work as a bigger group to take things forward. So I finish up leading in a way.”

    Jo Swinson

    Bates said “One of the things we did do is bring people together. And a lot of people… they’re suffering so badly, but once you manage to bring them together to meet others in a similar situation, it has enormous effects on their lives.”

    Bates’ diligence has a huge value to the public inquiry. He didn’t stop writing letters after he was sacked. After the Justice for Subpostmasters Alliance was formed he made a point of writing to every single postal affairs minister, to request meetings and detail exactly what was going wrong with the Post Office prosecutions and their defence of the Horizon network.

    Jo Swinson, who was postal affairs minister when Second Sight (the Post Office’s independent investigators) were sacked in 2015, was sent a letter by Alan Bates before Second Sight’s termination. In the letter, Bates details the appalling behaviour of the Post Office and tells the minister what needs to be done to deal with the situation. Swinson gives evidence later on in the Inquiry. It will be interesting to see what she has to say for herself.

    Derisory compensation offer

    We know that despite all the work Alan Bates has done in bringing this enormous miscarriage of justice to light, his first offer of compensation from the government came in at around sixth of what he claimed for. 

    Today he told the inquiry that the government was refusing to put a value on the 20 years he spent campaigning. As he put it: “Government doesn’t think anything I’ve done is worth anything.”

    Bates saved his final comments for the Post Office:

    “They’re an atrocious organisation. They need disbanding. It needs… building up again from the ground floor… it’s a dead duck, it’s beyond saving… it needs a real big injection of money… otherwise it’s going to be a bugbear for governments for years to come.”

    * Angela van den Bogerd as rendered by my speech-to-text software (I’ve brokn my arm). This got picked up shortly after I published this blog post on twitter, so I decided to leave it uncorrected.


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  • PR Week puts departed Post Office Comms Director in its “Power” Book

    Richard Taylor, in happier times.

    On Tuesday 27 February, the Post Office’s Director of Communications, Richard Taylor, left the Post Office. He had been suspended since 12 January after two recordings of him were made public by TalkTV.

    Curiously he has just been included in PR Week’s Power Book 2024, which celebrates “the most influential and respected comms professionals in the UK today”.

    In the Post Office Tapes, recorded in 2020 and 2021, Taylor insinuated many of the campaigning Subpostmasters were thieves. Specifically, he said:

    RT: “We give you… £30,000 pounds in cash to stick in a safe. And the problem with £30,000 in cash in a safe if you’ve got 11,500 post officers [sic] is some of those people decide to… not necessarily with any particular intent… to borrow that money for a little while.”
    Q. “So you think that’s what happened?”
    RT: “Well some of them downright stole it.”

    Also in 2020, he misrepresented the Bates v Post Office High Court judgment, stating:

    RT: “It’s never been proven that there was a link between the computer glitch and anybody actually losing any money. That’s what the judge said as well. There’s no causal link….”
    Q. “So where did the money go?”
    RT: “God Knows.”

    This was the line the Post Office Chief Executive Nick Read was trying to spin to parliament in June 2020.

    The judgment actually says:

    “It was possible for bugs, errors or defects of the nature alleged by the claimants to have the potential to cause apparent or alleged discrepancies…. Further, all the evidence in the Horizon Issues trial shows not only was there the potential for this to occur, but it actually has happened, and on numerous occasions.” [my emphasis]

    In 2021, Taylor said of Subpostmasters:

    “They get a bit of training, and then we leave them to it, and sling £30,000 of cash in a safe. These people have never run a business in their lives, and they get into a bit of a mess sometimes. Yeah?”

    Then he said:

    “No one writes about the other side of the story. No one writes about the fact that… 72 cases have been overturned – it was on ITV News yesterday – it was ‘these people are innocent… it should never have happened… they were all wrongly accused’, well – they were actually not necessarily wrongly accused, and it’s not all of them. Because yes, okay, on the scorecard so far it’s 72 overturned convictions… 3 upheld and 20 appeals withdrawn… so in broadest terms it’s currently kinda 72 – 23 so it’s… 3 to 1 but it’s not everybody.”

    Only 72 innocent people being given criminal convictions. Some scorecard.

    Taylor also insinuated that many Subpostmasters got off on a technicality, stating:

    “From a legal point of view, it says nothing about their guilt or innocence. It just means that their conviction is unsafe.”

    The Court of Appeal made it quite clear that’s not true. That’s why it found the Post Office prosecutions to be a second category Abuse of Process, ie “an affront to the conscience of the court”.

    Taylor’s response

    On 11 Jan, the day we were about to publish the Post Office Tapes, TalkTV asked the Post Office for comment. We received this via their press office from Richard Taylor:

    “I am deeply sorry about the terrible impact of this scandal on victims and have consistently apologised for all they have suffered. I sincerely apologise for any past remarks that I may have made during personal conversations which cause hurt or offence.”

    On 27 February 2024 the Post Office issued a statement. Of the 2020 and 2021 recordings, it said:

    “The conversations were one-to-one between Mr Taylor and a friend of forty years who instigated both meetings. While Mr Taylor’s comments did not breach any confidentiality, they do not reflect the view of the Post Office. Mr Taylor apologised publicly to anybody offended by his comments. Richard Taylor has left his role at Post Office, and hopes this might help to ensure that all those affected by the Horizon IT scandal, and the wider public, maintain confidence in the modernisation of Post Office.”

    The source who gave me the recordings said: “It was what he said (twice) that damned him, not what I did. I think he probably got off lightly (with a pay off) rather than stay and be there for the inevitable eradication of the Post Office board of Directors.”

    One senior PR professional I know messaged me today and said: “Why on earth is Richard Taylor in the list of the so called ‘top 1% of most impressive and influential PR professionals in the UK’? The irony is that PR Week asked us to nominate the worst PR performers over the last year and the Post Office was in the top five. So why include the person who was at the helm?”

    Obviously Richard Taylor is a titan among PR professionals, which is why he is lionised the PR Week 2024 Power Book. Or he might be an idiot. I’m not sure. I’ve asked PR Week why they’ve celebrated Taylor as one of the most “the most influential and respected comms professionals in the UK today”. They responded within ten hours to say:

    “Thank you for drawing our attention to our oversight here, for which we apologise. Richard Taylor should have been removed from the Power Book before it was published. We have now removed him. For context, the Power Book lists about 450 senior figures working in communications and public affairs in the UK. The vast majority of invitations for the 2024 edition were sent in December last year, before the airing of Mr Bates vs the Post Office and the subsequent stories. We abhor the treatment of Subpostmasters in the scandal and hope for full justice for everybody affected.”

    Here is Richard Taylor’s (now-deleted) Q&A in the PR Week Power Book 2024:


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  • Chris’s Compensation Solutions

    Chris Head at the Post Office Horizon IT Inquiry earlier this month.

    After yesterday’s parliamentary debate on Postmaster Compensation, former Subpostmaster Chris Head came up with his solutions for sorting everything out in a timely manner.

    Chris is a member of the Group Litigation Order (GLO) scheme, announced in 2022, by the (then) Postal Affairs Minister Paul Scully. For the last four years, however, Chris has been helping other Subpostmasters find their way around the mess surrounding the compensation schemes whilst working with Dan Neidle to expose their flaws.

    Chris posted his thoughts on twitter yesterday, I have edited and reformatted them for clarity and published them, with his permission, below:

    HSS ‘disaster’

    “I respect Kevin Hollinrake in the way he answered questions in the House of Commons today. There are many issues that need to be resolved with regard to the 2,197 “settled” claims in the Horizon Shortfall Scheme (HSS).

    I’ve had 27 new emails since Tuesday from Subpostmasters who settled under that scheme who say they have not been settled fairly but agreed when they were either desperate or unaware (due to the design of the application form) what they were able to claim for.

    They said the Post Office and the Business Department call it compensation but in some cases they have simply received their own money back and are aggrieved that the rhetoric is ‘they have been compensated’ because that is simply not the case.

    The forms they completed have been forwarded to me in full and there is no mention of the word ‘compensation’ or ‘distress & inconvenience’ that these people may have suffered on top of their shortfalls. It is a disaster. These people cannot instruct lawyers because their shortfalls may have been £7k or £10k, but they certainly have not been compensated as is being said.

    There is no provision for legal costs to assist these people to re-open these claims and no process in place to re-visit them. What do these people do? What about all the claims settled in that scheme in the earlier years where there was no 80% interim payment offered and therefore people took the offer because they simply couldn’t afford to dispute or lock into battle?

    I’ve now worked on over 200 cases where people would not have been able to access legal support because there was no provision to do so (especially around 1000-1500 earlier applicants), the £1200 legal fees offer was only mentioned after a claim was made and an offer received.

    OC and GLO schemes

    In the Overturned Convictions (OC) scheme there is £600k on the table to ‘speed up’ settlements. It is forcing people to make completely unfair decisions because that is indeed a lot of money.

    If they decline that offer and have a full assessment it takes far too long, the individual is starved of monies in the meantime regardless of what interims [claimants in the OC scheme are entitled to an immediate interim payment of £163,000] have been paid. And I am sure after speaking to people some would not have accepted this if they had access to additional interim amounts. This applies similar to the GLO scheme’s walk-away £75k offer.

    Some Subpostmasters may want a full assessment like the case Helen Morgan MP raised for her constituent during the debate, but how long will the delay be? She awaits disclosure, forensic assessment, submits a claim, waits at least 40 working days, may receive a derisory offer, and then has to dispute it, all whilst being starved of money [see barrister Paul Marshall on the lack of interim payments available to those on the GLO and HSS schemes].

    Chris’s solutions

    GLO scheme:

    ANYONE who has a claim below £100k pay it in full at its face value so as to not inflate low claims to the £75k level.

    ANYONE with a claim substantially above £100k as per expert reports commit to a 25% interim payment of the total claim value with 21 days of claim submission, pending its full assessment.

    OC scheme:

    ANYONE with a claim £600k or less gets it paid immediately. Anyone who provides evidence of a claim substantially above £600k gets an interim payment at a minimum of £500-£600k (less already received payments) and a commitment to providing a full offer within 60 calendar days.

    HSS:

    Re-visit every settled claim putting in place a trusted advocate on this (I would volunteer) to assess those who applied without legal assistance or haven’t been fully compensated as promised due to many factors.

    Those who are represented and have a quantified claim by experts receive 25% of its value as an interim amount and full settlement within 60 calendar days. No excuses.

    Any delay to these timeframes or offered amounts to result in additional damages for distress/inconvenience and added trauma at a pre-agreed rate.”

    Chris says his proposals are “fair, reasonable and achievable”.


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  • Staunton shoots back

    Henry Staunton

    On 18 Feb, the Sunday Times published this extraordinary interview with Henry Staunton, the sacked chair of the Post Office. Staunton said there was a “toxic” culture within the Post Office, alleged that the government had told him to go slow on compensation payments and that the Post Office CEO had written to the Business department saying that hundreds of Postmasters prosecuted by the Post Office were “guilty as charged”.

    It was followed in Monday’s Times with a story reporting that the Subpostmaster members on the Post Office board felt “ignored and unwanted”.

    At 4.18pm on 19 Feb, an outraged Business Secretary took to the Commons to describe Staunton’s comments as “patently untrue”. You can watch her statement here, or read the transcript of the statement and the subsequent debate here.

    Staunton immediately fought back, with a statement attributed to his spokesperson, which I have only been able to find on twitter. I thought it might be an idea to put it up here, for future reference. This version is taken from Robert Peston’s feed and was posted up at 6.39pm on 19 Feb 2024.

    Staunton’s Statement

    Firstly, with regard to the comment made to Mr Staunton by the senior civil servant to the effect that he was to stall on compensation payments to Horizon victims and on spend on the Horizon replacement so the government could “limp into the election” with the lowest possible financial liability. Mr Staunton stands by this comment which he recorded at the time in a file note which he emailed to himself and to colleagues and which is therefore traceable on the Post Office Server. 

    Secondly, Mr Stanton stands by his characterisation of the conversation with the Secretary of State in which he was informed of his dismissal.

    Thirdly, with regard to the alleged failure to observe due process in respect of the proposed appointment of a senior independent director, this is once again a mischaracterisation of the situation. 

    What happened was that the Government via the UKGI had proposed for the post an external candidate with Whitehall experience. Initially the Board acquiesced, but when it came to the Board for discussion, because so much had happened in the intervening four weeks the Board voted 6-2 to express clear preference to appoint a well qualified and in their view better qualified internal candidate, Andrew Dafoor who was already a director, and understood the issues. 

    The 6 included the chief executive. Of the two dissenters one was the UKGI representative. Mr Staunton informed the Board that they would now have to go through a due process including a nomination committee, Board and shareholder approval process and could not simply impose their preferred candidate. This was all at an early stage in the consultations, and could not be characterised as a breach of due process.

    Fourthly, with regard to allegations of bullying behaviour, this is the first time the existence of such allegations have been mentioned, and Mr Staunton is not aware of any aspect of his conduct which could give rise to such allegations. They were certainly not raised by the Secretary of State at any stage and certainly not during the conversation which led to Mr Staunton’s dismissal. Such behaviour would in any case be totally out of character.

    With regard to the appointment letter which the Department has chosen to publish, it should be noted that the reference to settlement with claimants is one of a number of issues arising out of the Horizon issue that are listed and not necessarily the most prominent. It should also be noted that if indeed the Secretary of State were concerned about the lack of urgency with which it was being addressed, this was never raised in any of the quarterly review meetings to assess progress against these objectives. These meetings were fully minuted.

    Last but not least, it should be noted that the Secretary of State has admitted that a letter was sent by the Post Office CEO to Alex Chalk setting out a legal opinion stating the reason so few sub-postmasters had come forward to have their convictions overturned was because they were “guilty as charged”. That letter was set after the ITV documentary was screened and after the government had set out a pledge to bring forward legislation to exonerate the postmasters.

    As chairman, Mr Staunton championed the cause of the postmasters who he saw as the real backbone of the organisation and the best hope for the future. As a number of recent press articles have indicated, historically postmasters were treated with contempt by much of the Post Office hierarchy, those attitudes were deeply entrenched and Mr Staunton fought hard with their representatives on the Board and others including the CEO to change that culture.

    Mr Staunton said: “It was in the interests of the business as well as being fair for the postmasters that there was faster progress on exoneration and that compensation for wrongly convicted postmasters was more generous, but we didn’t see any real movement until after the Mister Bates programme.”

    Mr Staunton is due to give evidence to the Business Select Committee on Tuesday next week (27 Feb), after the committee hears from Subpostmasters including Alan Bates, Tim Brentnall and Tony Downey and some of the usual suspects from the Post Office and government, including Simon Recaldin and Nick Read.

    One highlight might be Ross Cranston, who has been appointed as the independent reviewer of the GLO scheme. We have not heard him speak in public about his role before. But the real fireworks will undoubtedly begin when Staunton takes the chair, on his own, at 1pm. More details here.


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  • The unredacted Project Sparrow board minutes

    Screenshot from the BBC article

    On 26 Jan the BBC’s excellent economics correspondent Andy Verity published a story. Andy had eyes on two confidential Post Office documents which had previously only been published under FOI in heavily-redacted form.

    They were Project Sparrow board sub-committee meeting minutes from 9 and 30 April 2014. Project Sparrow was the codename given by the Post Office to its interactions with the Justice for Subpostmasters Alliance, MPs and Second Sight (independent investigators) between 2013 and 2015.

    During the 2018 group litigation Bates v Post Office at the High Court, the Post Office tried to claim the name “Project Sparrow” was legally privileged. True fact.

    The heavily redacted versions of the two Project Sparrow meeting minutes were sent to me in 2021 after I made the request which led to their release. I published them. Shortly afterwards I received them in unredacted form. I failed to publish them. I am grateful to the BBC story (a well-deserved scoop) for prompting me to look through my own document archive. I am now pleased to be able to upload the unredacted minutes for your reading pleasure:

    Unredacted Project Sparrow board meeting minutes 9 April 2014:

    Unredacted Project Sparrow board meeting minutes 30 April 2014:

    For more information on Project Sparrow, do read Andy’s report alongside my piece from 2021.


    The journalism on this blog is crowdfunded. If you would like to join the “secret email” newsletter, please consider making a one-off donation. The money is used to keep the contents of this website free. You will receive irregular, but informative email updates about the Post Office Horizon IT scandal.


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Latest Comments

  1. Nick, I also saw Alan Cook’s appearance and there’s something that confuses me more than a bit about him naming…

  2. I disagree, Nick’s reflection is more even-handed than his gut-reaction. We are judging people on what we know now and…

  3. Every single person from the Post Office; from the investigators through to the top tier of management has distanced themselves…