Post Office victims of second scandal set for payouts
The Post Office has asked the Government for more funding to pay out wrongfully convicted sub-postmasters in the strongest sign yet that it admits there was a second IT scandal pre-dating Horizon, i can reveal.
Dozens of former sub-postmasters have claimed they suffered unexplained accounting errors while using Capture, a piece of software rolled out to branches in the 1990s. But in a precursor to the Horizon scandal, they say they were forced to hand over money, sacked and, in some cases, criminally prosecuted. Following reports in i this year, the Post Office said it would investigate claims linked to Capture as a matter of urgency. Last week, a Post Office spokesman confirmed that following an initial review of evidence, senior bosses have made a “recommendation” of how to proceed to the Government, which is the sole shareholder of the business.
Both the Post Office and the Department for Business and Trade (DBT) have declined to confirm what this recommendation is but the Government says it will issue an update in “due course”.
However campaigners feel it is becoming increasingly clear that all sides accept there have been further miscarriages of justice that will require more convictions to be overturned – and compensation payouts.
In an email seen by i, Simon Recaldin, the director of redress schemes at the Post Office, told former subpostmaster Steve Marston: “We are using the valuable information you are providing to help us with the government in order to try to secure funding for potential redress.”
Mr Marston, 68, was made bankrupt after he was convicted of theft and false accounting in 1998 by the Post Office, over an alleged shortfall of £79,000 from his branch in Heap Bridge, Greater Manchester. He insists he never stole “a penny” and he suffered accounting errors due to Capture. “It looks like the Post Office is accepting that we are victims and they will need to ask the Government for more funding for compensation,” said Mr Marston, who has begun applying for his conviction to be overturned. Last night, he met Post Office minister Kevin Hollinrake and was assured the Government wants Capture cases heard as soon as possible.
A spokesman for the DBT said: “Yesterday minister Hollinrake met with Kevan Jones, Neil Hudgell and some of the impacted postmasters to discuss next steps, and we will set these out in due course.”
Mr Jones has campaigned on behalf of claimants, represented by lawyer Mr Hudgell.
The Government has already suggested alleged Capture victims could be paid compensation via existing schemes to deal with the Horizon scandal, which have a budget of more than £1bn.