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The government has acknowledged that it was too passive in managing the Post Office, which saw the publicly owned organisation make decisions that destroyed the lives of the people who represent them on high streets across the UK.
Over the past 20 years, the government has failed to address serious mismanagement by the Post Office, despite concerns being raised and made public.
Computer Weekly first reported the problems with Horizon in 2009, when it made public the stories of a group of subpostmasters. Soon after this, more subpostmasters came forward, but the dispute dates back further than that (see timeline below).
A multimillion-pound case, which concluded in December, saw 550 subpostmasters take the Post Office to court in a group litigation, in an attempt to redress the grievances caused to them by the error-prone computer system they use, as well as contract terms described as oppressive by a High Court judge. Subpostmasters were prosecuted for theft or false accounting as a result of accounting shortfalls that were caused by the Horizon IT system, with some subpostmasters jailed.
After the subpostmasters won the court battle, which vindicated them and implicated the Post Office with serious failures, their fight for justice continues. Pressure is being put on politicians with calls for the legal costs of subpostmasters to be paid by government and the launch of a judge-led public inquiry.
Subpostmasters were awarded £57.75m in damages, but after costs were taken out they were left with around £10m, which means subpostmasters will not even get back the money they lost. There are also calls for the people responsible for allowing the scandal to happen to face justice.
An all-party parliamentary group (APPG) will meet affected subpostmasters on March 16 to discuss redress of the grievances with subpostmasters.
The government will come under the spotlight for its management of the publicly owned Post Office, which it describes as an arm’s-length organisation of which it has no day-to-day control.
Campaigners have criticised the government for not preventing the Post Office from wrongly prosecuting subpostmasters, as a member of government sits on the board of Post Office. There are also questions for the government about why the Post Office was allowed to spend millions of pounds fighting the court case, despite being aware of problems with Horizon.
During a debate in the House of Lords, Conservative peer Stuart Polak asked Ian Duncan, Conservative peer and parliamentary under-secretary of state in the department for Business, Energy and Industrial Strategy (BEIS), what the exact role of the department’s representative on the board of directors of Post Office is.
Duncan confirmed there is a non-executive director who is responsible for representing the department and the government, but said the role has been passive, and will be changed following the court judgements.
“His role has evolved from a perhaps more passive approach to a much more active one going forward. We have to have a much stronger view about how we manage this area, through the chief executive, the chairman and the non-executive director with responsibility for governance and clear adherence to the responsibilities of the board itself.”
“Passive should be described as non-existent,” said Alan Bates, the former subpostmaster who led the legal action against the Post Office. “The government has a statutory duty to be involved in the Post Office.”
Over the past two decades, the Post Office has prosecuted subpostmasters for theft and false accounting, when the losses were actually caused by faults in the computer system. Some subpostmasters were sent to prison, and hundreds, potentially thousands, were forced to cover losses that were not their doing.
In his judgement in the High Court for the second trial in the court case, which focused on the Horizon computer system, Judge Fraser said the Post Office had exhibited “a simple institutional obstinacy or refusal to consider any possible alternatives to their view of Horizon, which was maintained regardless of the weight of factual evidence to the contrary”.
“That approach by the Post Office was continued, even though now there is also considerable expert evidence to the contrary as well, and much of it agreed expert evidence on the existence of numerous bugs,” he added.
“This approach by the Post Office has amounted, in reality, to bare assertions and denials that ignore what has actually occurred, at least so far as the witnesses called before me in the Horizon issues trial are concerned. It amounts to the 21st century equivalent of maintaining that the Earth is flat.”
Lord Justice Coulson in the Court of Appeal has likened the treatment of subpostmasters by the Post Office to the way Victorian factory owners treated their workers.
APPG to discuss case
March’s APPG will hear from subpostmasters affected that want the government to pay the court costs and for a judge-led public inquiry to be called.
Gill Furniss, Labour MP for Sheffield Brightside & Hillsborough and shadow minister for steel, post and consumer protection, said: “I and the rest of the APPG will shortly be meeting with key stakeholders, including Alan Bates, to discuss the best way to redress the grievances suffered by Subpostmasters. We hope that this insight will aide us in drawing more widespread attention to the issue, both in Parliament and across the country.”
She added that support within Parliament for a public inquiry into the scandal is growing, with an increasing number of MPs raising concerns on the matter. “It also crosses party lines, MPs and peers from nearly all the parties in Parliament work together through the APPG on Post Offices to get justice for the subpostmasters affected by this scandal,” she said.
“This surge in support is welcomed and we are exploring a range of ways to pressure the government into launching a full public inquiry. As a precursor to this, it is also our hope that the BEIS Committee and the National Audit Office will be investigating this matter. I have written to both of these bodies to this effect.”
Bates said the APPG might be able to dig deeper now that the court case is concluded. “They should now be able to ask a lot of questions they could not last time due to the court case,” he said.
He said his main goal is to recover the costs of the action. “We think this should be paid by BEIS because they did not do their duty,” he added.
The subpostmasters then want a public inquiry into the scandal. “We want a full public inquiry, preferably judge-led, to find out who knew what, when and why they made the decisions they did,” said Bates.
Many claimants have been meeting with MPs to express their anger at how they were treated, and more than 100 of the group have already met with their MPs, with more planned.
- May 2009: Bankruptcy, prosecution and disrupted livelihoods – postmasters tell their story.
- September 2009: Postmasters form action group after accounts shortfall.
- November 2009: Post Office theft case deferred over IT questions.
- February 2011: Post Office faces legal action over alleged accounting system failures.
- October 2011: 85 subpostmasters seek legal support in claims against Post Office computer system.
- June 2012: Post Office launches external review of system at centre of legal disputes.
- January 2013: Post Office admits Horizon system needs more investigation.
- January 2013: Post Office announces amnesty for Horizon evidence.
- January 2013: Post Office wants to get to bottom of IT system allegations.
- June 2013: Investigation into Post Office accounting system to drill down on strongest cases.
- July 2013: Post Office Horizon system investigation reveals concerns.
- October 2013: End in sight for subpostmaster claims against Post Office’s Horizon accounting system.
- October 2013: Former Lord Justice of Appeal Hooper joins Post Office Horizon investigation.
- November 2013: 150 subpostmasters file claims over ‘faulty’ Horizon accounting system.
- September 2014: Fresh questions raised over Post Office IT system’s role in fraud cases.
- December 2014: MPs blast Post Office over IT system investigation and remove backing.
- December 2014: Why MPs lost faith in the Post Office’s IT investigation, but vowed to fight on.
- December 2014: MPs to debate subpostmaster IT injustice claims.
- December 2014: MP accuses Post Office of acting “duplicitously” in IT investigation.
- January 2015: MPs force inquiry into Post Office subpostmaster mediation scheme.
- January 2015: Post Office faces grilling by MPs over Horizon accounting system.
- February 2015: Post Office CIO will talk to any subpostmaster about IT problems, promises CEO.
- March 2015: Post Office ends working group for IT system investigation day before potentially damaging report.
- March 2015: MPs seek reassurance over Post Office mediation scheme.
- March 2015: Retiring MP aims to uncover truth of alleged Post Office computer system problems.
- April 2015: Post Office failed to investigate account shortfalls before legal action, report claims.
- April 2015: Criminal Courts Review Commission set to review subpostmasters’ claims of wrongful prosecution.
- May 2015: IT system related to subpostmaster prosecutions under review by CCRC.
- June 2015: Post Office looking to replace controversial Horizon system with IBM, says MP.
- July 2015: Campaigners call for independent inquiry into Post Office Horizon IT system dispute.
- October 2015: James Arbuthnot takes Post Office IT fight to House of Lords.
- November 2015: The union that represents Post Office subpostmasters has warned of a problem with the Horizon accounting system.
- November 2015: An email from Post Office IT support reveals a problem with the Horizon system and supporting processes that could lead to accounting errors.
- November 2015: Group litigation against Post Office being prepared in Horizon dispute.
- February 2016: Post Office faces group litigation over Horizon IT as subpostmasters fund class action.
- June 2016: Post Office chairman Tim Parker says there would be “considerable risk” associated with changing its Horizon computer system.
- November 2016: The legal team hired by a group of subpostmasters will take their case to the next stage.
- January 2017: The group action against the Post Office that alleges subpostmasters have been wrongly punished for accounting errors gets a green light from the High Court of Justice.
- March 2017: 1,000 subpostmasters apply to join IT-related group litigation against Post Office.
- April 2017: Investigation into claims of miscarriages of justice in relation to a Post Office accounting system has appointed a forensic accountant firm.
- May 2017: Hundreds of subpostmasters have applied to join IT-related legal action since March.
- July 2017: Post Office defence in computer system legal case due this week.
- August 2017: Campaigners submit initial evidence in group litigation against Post Office over controversial Horizon IT system.
- October 2017: Subpostmasters’ group action against the Post Office reaches an important milestone.
- November 2017: An end is in sight for subpostmasters’ campaign against alleged wrongful prosecution, which they blame on a faulty computer system.
- November 2017: The High Court judge managing the subpostmasters versus Post Office legal case over an allegedly faulty computer system tells legal teams to cooperate.
- January 2018: Forensic investigation into Post Office IT system at centre of legal case nears completion.
- April 2018: Criminal Cases Review Commission forensic examination of the IT system at the centre of a legal case against the Post Office has raised further questions.
- May 2018: Post Office branches unable to connect to Horizon computer system for several hours after morning opening time.
- October 2018: After over a decade of controversy, next week marks the beginning of a court battle between subpostmasters and the Post Office.
- November 2018: Case against Post Office in relation to allegedly faulty computer system begins in High Court.
- November 2018: High Court case in which subpostmasters are suing the Post Office has revealed a known problem with a computer system at the core of the dispute.
- November 2018: A High Court trial, where subpostmasters are suing the Post Office for damages caused by an allegedly faulty IT system, ends second week.
- November 2018: Post Office director admits to Horizon errors and not sharing details with subpostmaster network.
- November 2018: The High Court trial in which subpostmasters are suing the Post Office has reached an important stage.
- December 2018: CCRC may hold off subpostmaster decision until after Post Office Horizon trial.
- December 2018: Court case where subpostmasters are suing the Post Office set to span at least four trials and extend into 2020.
- January 2019: Subpostmasters’ campaign group attacks Post Office CEO Paula Vennells’ New Year honour amid ongoing court case.
- January 2019: Thousands of known errors on controversial Post Office computer system to be revealed.
- March 2019: Tech under spotlight at High Court in second subpostmasters versus Post Office trial.
- March 2019: Post Office considered Horizon IT system “high risk”, court told.
- March 2019: CCRC watching Post Office Horizon trial closely.
- March 2019: Judge rules that Post Office showed “oppressive behaviour” in response to claimants accused of accounting errors they blamed on Horizon IT system.
- March 2019: Post Office ‘lacked humanity’ in the treatment of subpostmasters, says peer.
- March 2019: A High Court judge heard that the Post Office did not investigate a computer system error that could cause losses, despite being offered evidence.
- March 2019: The Post Office legal team in the case brought by more than 500 subpostmasters has called for the judge to be recused after questioning his impartiality.
- March 2019: A senior civil servant asked the Post Office to repay public money it had wrongly allocated to paying legal costs.
- April 2019: Subpostmaster claimants’ legal team makes application for the Post Office to pay millions of pounds of costs associated with trial.
- April 2019: Post Office to appeal judgment from first Horizon trial.
- April 2019: The Post Office’s claim that the judge overseeing the case concerning its controversial Horizon IT system was biased has been dismissed – but will now be considered by the Court of Appeal.
- April 2019: MP questions government over Post Office Horizon case.
- April 2019: Government says no conflict of interest in trial despite Post Office chairman’s dual role.
- May 2019: The Court of Appeal has refused the Post Office’s application to appeal a major decision in the Horizon IT trial.
- May 2019: The Post Office has applied for permission to appeal judgments from the first trial in its IT-related legal battle with subpostmasters.
- May 2019: The judge in the Post Office Horizon trial has ordered the organisation to pay the legal costs of its courtroom adversaries, and refused to give permission to appeal a major judgment.
- June 2019: Post Office asks Court of Appeal for permission to appeal judgment in first Horizon trial.
- July 2019: The Post Office has admitted that some subpostmasters are at risk of accounts not balancing due to an error it does not understand.
- July 2019: Problem revealed during High Court trial left subpostmaster with £18,000 surplus after IT system failed to register full amount of cash scanned in.
- August 2019: Subpostmasters suffering slow running and frozen terminals while Post Office searches for a fix to issues apparently caused by a software update.
- August 2019: The Post Office has fixed the latest problems with its Horizon system, affecting hundreds of branches.
- October 2019: A High Court judgment for a trial that focused on the Post Office’s IT system at the centre of a multimillion-pound litigation will be announced early next month.
- November 2019: The Court of Appeal has rejected a Post Office application to appeal judgments made in its multimillion-pound battle with subpostmasters over IT system failures.
- November 2019: Peer calls for clear-out of Post Office board after Court of Appeal confirms major court defeat.
- December 2019: The Post Office has settled its long-running legal dispute with subpostmasters, and will pay £57.75m in damages.
- December 2019: Subpostmasters ended their legal battle with the Post Office at the optimal time, according to the lawyer that managed the High Court action.
- December 2019: Subpostmasters proved right on IT system failures as calls for full public inquiry mount.
- December 2019: Criminal Courts Review Commission to review Horizon judgment ‘swiftly’.
- December 2019: National Federation of Subpostmasters cries foul after court ruling on controversial computer system.
- December 2019: Former Post Office CEO apologises to subpostmasters over Horizon scandal.
- December 2019: Call for former Post Office CEO to step down from public roles after IT court battle lost.
- January 2020: Fujitsu must face scrutiny following Post Office Horizon trial judgment.
- January 2020: Subpostmaster group calls for government to pay legal costs for Horizon trial.
- January 2020: Why subpostmasters are calling on the government to pay Horizon trial costs.
- January 2020: Department for Business, Energy & Industrial Strategy says it did not make decisions in the Post Office’s recent court battle.
- January 2020: Government should not be allowed to dismiss subpostmasters’ claims over Horizon IT scandal.
- January 2020: Police sent information about potential Fujitsu staff perjury in subpostmaster prosecutions.
- January 2020: Prosecutions are a significant step closer to being sent to the Court of Appeal as Criminal Courts Review Commission forms a group of commissioners to review them.
- January 2020: Alan Bates: The ‘details man’ the Post Office paid the price for ignoring.
- February 2020: The government has refused to pay the huge legal costs subpostmasters incurred in their battle with the government-owned Post Office, which they won.
- February 2020: Members of Parliament seeking a public inquiry into the Post Office Horizon scandal face huge challenges, but pressure and time could force justice.
- February 2020: Calls for inquiry into Post Office IT scandal increase in Parliament, with cross-party support.
- February 2020: Care Quality Commission to review concerns over Paula Vennells’ appointment after they were raised by a former NHS consultant psychiatrist.
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