Post Office system not a scandal, insists ex-union boss (2024)

ByTom Espiner,BBC business reporter

The Post Office's Horizon system is "very robust" and the only scandal is that the company failed to properly defend it, according to a man tasked with representing sub-postmasters.

George Thomson, the former leader of the National Federation of Sub-Postmasters (NFSP), told a long-running inquiry: "The Horizon system is not the scandal, the Post Office stupidity on steroids handling of the situation is the scandal."

Between 1999 and 2015, more than 900 sub-postmasters were prosecuted for offences including theft on the strength of faulty data from the Horizon IT system.

Christopher Head, a former sub-postmaster, described Mr Thomson's views as "nothing short of abhorrent".

David Enright, a lawyer who has represented hundreds of people in connection with the Post Office, said Mr Thomson's "flat earther defence of the Horizon computer system defies credulity".

Mr Thomson said that the number of sub-postmasters who had been prosecuted was a "tiny percentage" of the 100,000 people who have used Horizon over 25 years.

Horizon is a software system for tasks such as accounting and stocktaking which began to be installed across Post Office branches from 1999.

Sub-postmasters complained about bugs after it falsely reported shortfalls - often for many thousands of pounds - but their concerns were dismissed.

Mr Thomson said the Post Office's "mishandling of the situation" has been "so catastrophic" for sub-postmasters, the brand and Royal Mail group.

It means that the Post Office has "not been able to defend a robust Horizon computer system", Mr Thomson said.

Mr Thomson denied, however, the association that it became "too close" to the Post Office or was "flush with cash".

The inquiry also heard the former union general secretary privately tipped off the Post Office about those "sniffing around" the Horizon IT system.

In an email from Mark Davies, communications and corporate affairs director at the Post Office, sent on May 10 2015, part of the chain read: "Our media relationships with George [Thomson] and team are very good at present - he has been tipping us off, privately, about people sniffing around Horizon."

Asked by inquiry counsel Mr Blake if he was "tipping off" the Post Office, Mr Thomson said: “I have made the point time after time today that Horizon is a robust system”, adding that he worked closely with the Post Office to strengthen the franchise.

Mr Head said: “I think his evidence so far shows him for the man that he is. He has shown no remorse, no sympathy, there is absolutely no sign of any apology for his or the NFSP's part in the scandal and the damage done in this scandal.

"The testimony so far is nothing short of abhorrent."

The NFSP was a trade union - set up in 1897 by a group of sub-postmasters to help their profession - which was changed into a trade association a decade ago after the Post Office did not recognise the group for collective bargaining purposes.

During questioning at the inquiry on Friday, Mr Thomson's responses were greeted by astonishment and anger by some sub-postmasters in the room.

When asked by Julian Blake, counsel for the inquiry, why the NFSP had not defended sub-postmasters, Mr Thomson insisted that the federation had argued on their behalf but had not had the funds for a legal defence.

The NFSP has received millions of pounds in payments from the Post Office.

The inquiry was shown an email from August 2013 that outlined plans for a 15- year deal between the Post Office and NFSP.

It included annual payments starting at £500,000 in 2013-14 and reaching £2.5m between 2017 and 2028.

Mr Thomson was general secretary of the NFSP between 2007 and 2018.

He said: "We worked closely with the Post Office because we both needed to have a successful franchise - that's the reality."

Following Mr Thomson's evidence to the inquiry, Calum Greenhow, chief executive of the NFSP sought to distance the organisation from his comments, saying the union was "shocked".

"We want to apologise unreservedly to any member who sought help from the NFSP about Horizon and didn’t receive the support they so desperately needed and deserved," he added.

"It is clear that more could and should have been done for them and for others."

Mr Greenhow said the evidence heard on Friday "showed" that during Mr Thomson’s tenure "he did not take seriously enough the significant warning signals about Horizon and was not willing to accept challenges to his views on it".

The Horizon scandal was thrown back into the spotlight by an ITV drama broadcast at the beginning of the year: Mr Bates vs the Post Office.

It followed the story of Alan Bates, a former sub-postmaster and campaigner who took the Post Office to court, and a number of sub-postmasters who were wrongly accused of stealing money or falsifying records.

He has led a 20-year campaign for justice for sub-postmasters, and was knighted this month.

Mr Thomson criticised Sir Alan and the media for “painting Horizon as not fit for purpose”.

"This viewpoint is not only factually incorrect but has damaged the brand and post offices all over the UK,” he said.

"My support for Horizon has never wavered."

He said although bugs had been found in the software, that did not mean Horizon was not systemically robust.

He added that he was "furious" with the Post Office for taking people to court when they knew "people could access your computer", adding that the "shenanigans" were "bizarre".

Former sub-postmaster Nitin Pandit said the Post Ofice and the NFSP had "just one standard response: that the system is robust."

He said himself and former colleagues "are all very angry".

"Even today we are sitting in the inquiry and so many of us are absolutely fuming," he said.

"NFSP were not supposed to work hand in hand with the Post Office, they were supposed to protect us," he added. "Where were they?"

Post Office system not a scandal, insists ex-union boss (2024)

FAQs

Post Office system not a scandal, insists ex-union boss? ›

George Thomson, the former leader of the National Federation of Sub-Postmasters

National Federation of Sub-Postmasters
The National Federation of SubPostmasters (NFSP) is a membership organisation, which represents subpostmasters in the United Kingdom. Subpostmasters are self-employed business operators, approved by Post Office Ltd to act as their agents in running Post Office branches (outlets).
https://en.wikipedia.org › wiki › National_Federation_of_Sub...
(NFSP), told a long-running inquiry: "The Horizon system is not the scandal, the Post Office stupidity on steroids handling of the situation is the scandal."

What was wrong with the Post Office horizon system? ›

Horizon was developed by the Japanese company Fujitsu, for tasks such as accounting and stocktaking. It was introduced by the Post Office in 1999. Sub-postmasters quickly complained about bugs in the system after it falsely reported shortfalls - often for many thousands of pounds - but their concerns were dismissed.

What does Fujitsu say about the Post Office scandal? ›

Fujitsu's Tokyo headquarters apologized on Thursday, saying the U.K. subsidiary is "providing full cooperation" with the inquiry and that the company will work with the British government to determine "appropriate actions, including contribution to compensation."

What is the Post Office management scandal? ›

November 2021: The behaviour of Post Office senior management during the Horizon scandal was so egregious that the supplier of the faulty software has escaped a large financial penalty. November 2021: Former Fujitsu staff who gave evidence in subpostmaster trials have been questioned by police for a second time.

What was the Post Office accounts scandal? ›

The Horizon computer system is used in post offices to manage in-branch sales, with accounts being automated in the background. Previous versions of the system were found by the High Court in 2019 to have had bugs, errors and defects that could have caused shortfalls in Postmasters' branch accounts.

What was the cause of the Post Office scandal? ›

The British Post Office scandal, also called the Horizon IT scandal, involved the Post Office pursuing thousands of innocent subpostmasters for apparent financial shortfalls caused by faults in Horizon, an accounting software system developed by Fujitsu.

What is the problem with the U.S. Postal Service? ›

To file a complaint online, select the topic below "What's the reason for your inquiry?" on the USPS "Email us" page. Topics include delivery issues and complaints about USPS employees or facilities. Call 1-800-ASK-USPS (1-800-275-8777) or TTY: 711.

Has anyone been held accountable for the Post Office scandal? ›

More than 700 people were prosecuted by the Post Office between 1999 and 2015. To date, just 37 have received full and final compensation settlements.

Did the Post Office scandal get compensation? ›

Post Office redress arrangements

Post Office is continuing to administer redress for people whose convictions were overturned by the Courts, before the Government's legislation. As at 31 July, there were 110* convictions overturned by the Courts and £54.16m has been paid in redress.

Who was CEO of Post Office during scandal? ›

Paula Anne Vennells (born 21 February 1959) is a British former businesswoman who was the chief executive officer (CEO) of Post Office Limited from 2012 to 2019, years which saw the continuing prosecution of innocent subpostmasters and a very costly and unsuccessful attempt to defend a group action.

Has the Post Office scandal been resolved? ›

Wrongful Post Office convictions to be quashed through landmark legislation: 13 March 2024. Hundreds of innocent sub-postmasters wrongly convicted as a result of the Horizon scandal will have convictions quashed following landmark legislation introduced today [Wednesday 13 March].

Does the Post Office still use the Horizon system? ›

Is Horizon still being used? Yes, but not in the same form as the system used by the sub-postmasters who were taken to court due to faults. The current version was brought in from 2017.

What is the Post Office scandal USA? ›

The Post Office scandal began with a May 1991 investigation by the U.S. Capitol Police into embezzlement by a single employee. The inquiry rapidly expanded to include allegations against other employees and a general audit of the Post Office.

What was wrong with the Post Office computer system? ›

What went wrong? The system was simply not up to the tasks placed on it. The Post Office knew as much as early as 1999, when trials run in preparation for the launch revealed “severe difficulties being experienced by subpostmasters”, the inquiry into the scandal heard.

How many people went to jail in the Post Office scandal? ›

Faulty computer software resulted in some 230 post office workers being imprisoned on false charges of theft and fraud. Thousands of others were accused of similar misdeeds.

Where has the money gone from the Post Office scandal? ›

The short answer to Where Did All The Money Go is that it was either disappearing out of branches due to customer fraud or staff theft or repeated mistakes benefitting a customer OR it was disappearing out of ancillary (IT and non IT) Post Office (and non-Post Office) systems due to fraud, mistakes outside the branch ...

Did Fujitsu know Horizon was faulty? ›

The boss of Fujitsu in Europe has admitted staff knew of bugs, errors and defects (BEDS) in the Horizon IT system as far back as 1999.

What was the Post Office issue? ›

Between 1999 and 2015 the Post Office relentlessly pursued operators of sub-post offices across the UK for alleged theft, fraud and false accounting based on information from its Horizon IT system installed in the late 1990s.

What was the House Post Office scandal? ›

The Congressional Post Office scandal was the discovery of corruption among various Congressional Post Office employees and members of the United States House of Representatives, investigated 1991–95, culminating in House Ways and Means Committee chairman Dan Rostenkowski (D-IL) pleading guilty in 1996 to reduced ...

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