Since the release of the ITV drama – Mr Bates vs The Post Office – there have been widespread discussions over the infamous Post Office scandal. But what’s the true story? And what comes next?
Inside the Post Office scandal
Between 1999 and 2015, hundreds of self-employed workers at the UK Post Office (state-owned) were wrongly prosecuted or convicted for false accounting, theft and fraud, because of glitches in a software system that incorrectly showed money missing from accounts.
Some went to jail, some went bankrupt, others saw their marriages destroyed whilst at least four people committed suicide.
The managers at the Post Office branches, called sub-postmasters, are often at the heart of their communities and are trusted individuals who handle people’s savings and pensions.
Despite overwhelming evidence, the Post Office maintained for years that data from the Horizon computer accounting system – developed by Japan’s Fujitsu was reliable, whilst accusing sub-postmasters of theft.
What is the Horizon system?
What is the Horizon system?
Horizon was introduced by the Post Office in 1999. The system was developed by the Japanese company Fujitsu, for tasks like accounting and stocktaking.
Sub-postmasters complained about bugs in the system after it falsely reported shortfalls – often for many thousands of pounds.
Some attempted to plug the gap with their own money, as their contracts stated they were responsible for any shortfalls. Many faced bankruptcy or lost their livelihoods as a result.
The Horizon system is still used by the Post Office, which describes the latest version as “robust”.
So what happened?
When the Horizon system was rolled out, issues started to arise for some sub-postmasters. When entering the account information into the system it would incorrectly show shortfalls in the accounts of individual branches.
Those who were showing losses were told they would have to pay back the ‘missing’ money – which was never actually missing, but the system’s error made it seem so.
Issues began to be reported to the Post Office from the early 2000s.
Over the next decade, a number of sub-postmasters either found their Post Office contracts terminated, were made bankrupt or were jailed after being found guilty of stealing money.
In 2009, trade publication Computer Weekly reported the claims of flaws with Horizon, alongside the postmaster prosecutions.
Amid mounting pressure from the media and lawmakers, the Post Office began to investigate the issue, but in 2015, its boss Paula Vennells told a parliamentary committee that there had been no evidence of any miscarriage of justice.
By late 2019, the Post Office agreed to settle claims made by 555 sub-postmasters. But many found the compensation paid was outweighed heavily by legal fees.
The government says roughly £138 million has been paid out to over 2,700 claimants across three separate Post Office compensation schemes – but many have still not received their compensation or had their convictions quashed.
Who is Paula Vennells?
Who is Paula Vennells?
She had a long-standing career at the Post Office, having started as group network director in 2007, then becoming managing director in 2010 before being promoted to the top job five years later.
She headed up the Post Office for nearly seven years, taking the helm in the same year that it split from Royal Mail as part of the latter’s privatisation.
She was appointed CBE in the 2019 New Years Honours List “for services to the Post Office and to charity”, just before stepping down from the Post Office in February of that year.
Her tenure as chief executive was marred from the start, coming as the Post Office suffered amid financial woes, leading to sweeping cost-cutting measures which saw thousands of branches close across the UK.
Her promotion also came as the Post Office began to investigate allegations made by a number of sub-postmasters about the IT system at the centre of the scandal.
She faced heavy criticism over her handling of the affair, finally stepping down in February 2019.
- SOURCE: THE INDEPENDENT
The ITV drama and government plans
A TV drama about the scandal has led to a public outcry with the public wanting action to be taken.
There is currently a public inquiry into the scandal and the government has said those to blame will be “held to account.”
Paula Vennell, the former boss of the Post Office during the period in question, has said she will hand back her CBE, which she was awarded in 2019.
Justice Secretary Alex Chalk has called for Fujitsu – the company behind the software – to “face the consequences” if found to be at fault.
The Met Police has also said it is investigating the Post Office and the way it handled the cases.
PM Rishi Sunak has announced new legislation which will overturn the convictions – as well as a compensation scheme. Under the plan, sub-postmasters will be able to sign a document to have their convictions reversed and claim compensation.
But some legal experts have warned that the action to quash the convictions means politicians are meddling in the independent judicial process, and there is worry that this could become a habit.
WTX SCHOLAR
BBC NEWS: WHAT IS THE POST OFFICE SCANDAL?: https://www.bbc.co.uk/newsround/67924407
PROSPECT: THE POST OFFICE SCANDAL IS SHOCKING – BUT NOT SURPRISING: https://www.prospectmagazine.co.uk/ideas/law/64464/post-office-scandal-mr-bates-law
ACCOUNTANCY AGE: WHAT SHOULD ACCOUNTING TECHNOLOGY PROVIDERS LEARN FROM THE POST OFFICE HORIZON SCANDAL: https://www.accountancyage.com/2024/01/09/what-should-accounting-technology-providers-learn-from-the-post-office-horizon-scandal/
THE GUARDIAN: NO PRECEDENT: WHY COMMONS APPROACH TO POST OFFICE SCANDAL HAS LAWYERS NERVOUS: https://www.theguardian.com/uk-news/2024/jan/10/no-precedent-why-commons-approach-to-post-office-scandal-has-lawyers-nervous
THE GUARDIAN: WE HAVE SEEN HEROES EMERGE FROM THE POST OFFICE SCANDAL. NOW FOCUS ON THE VILLAINS: https://www.theguardian.com/commentisfree/2024/jan/09/heroes-post-office-scandal-villains
MARKETING WEEK: POST OFFICE BRAND HEALTH PLUMMETS IN WAKE OF ITV DRAMA: https://www.marketingweek.com/post-office-brand-health-itv-drama/
THE CONVERSATION: POST OFFICE SCANDAL: WHAT THE LACK OF ACTION TELLS YOU ABOUT BRITAIN’S POLARISED POLITICS: https://theconversation.com/post-office-scandal-what-the-lack-of-action-tells-you-about-britains-polarised-politics-220958