Post Office misleads public inquiry over compensation

Nick Read, Post Office CEO, on day 2 of his evidence

The Post Office Chief Executive has admitted withholding important information from the Post Office Horizon IT Inquiry. The revelation came right at the beginning of the second day of Post Office Chief Executive Nick Read’s testimony to the Inquiry, but related to a comment he made on the first.

On Wednesday Read had told Jason Beer KC (counsel for the Inquiry) that the only reason the Post Office were involved in any of the Subpostmaster compensation schemes was because the government “were of the opinion that the chaos – I think was the word that was used – had been caused by the Post Office. There was a desire for the Post Office to experience some of the discomfort that had been caused.”

Read volunteered he thought this “astonishing” and “missing the point completely”. He then told the Inquiry it was his view that compensation should be delivered “independently”, adding “I’ve been consistent with that view, well, for three or four years now.”

Three or four years, you say?

On Thursday morning Beer asked Read about this again. Read repeated his position, and then added “I think it’s also a view that’s held by others within the Post Office.”

Beer asked for clarity. Was Read’s view that the Post Office should not be involved in compensating Subpostmasters “the corporate view” of the Post Office?

Read confirmed it was, and “has been for some time.”

Jason Beer KC

Beer pointed out there had been four compensation hearings over the last two years, one of which Read himself attended. The hearings were set up so the Inquiry Chair, Sir Wyn Williams could make decisions and recommendations about the delivery of compensation.

Beer asked: “If that was the corporate view of the Post Office why was it not communicated to the inquiry in any of those four hearings? ie ‘we do not want anything to do with redress schemes, we think it is difficult for us to be involved for the reasons that you give, please make recommendations to take this business away from us’.”

Read squirmed. “It’s a good question. I’m not sure specifically why we didn’t say that.”

Beer continued: “The inquiry was considering those very things. There were Subpostmaster groups who were saying take the function away from or do not give the function to the Post Office and the Chairman was considering making recommendations about those very things. Again, I ask, if that was the corporate view of the Post Office, why did it not communicate it?”

Read had no idea. “Clearly we should have done”, he said.

Considerable time, effort and public money has been expended by the Inquiry on trying to scrutinise the various compensation schemes so the Inquiry chair could make recommendations to the government about how they should be run.

That the Post Office’s internal, but long-held position should come as news to the Inquiry more than two years after it held its first compensation hearing is shocking.

Failing to tell the Inquiry it was the Post Office’s settled view it should have nothing do with administering any compensation schemes is misleading by omission.

I have asked the Department for Business and Trade (which owns the Post Office on behalf of the public) whether it was appropriate to punish the Post Office by making it run a compensation scheme (to the detriment of the victims, as it inevitably turned out), and I have also asked DBT what it makes of the Post Office failing to inform the Inquiry of its view on running compensation schemes.


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19 responses to “Post Office misleads public inquiry over compensation”

  1. I second Paul’s statement we are here we are following EVERYTHING these people will pay.

  2. The Post Office should pay All the compensation. The tax payers should pay nothing. The payments should be made by the end of this year. Why can they not find where the money the postmasters paid went? Surely this is one of the easiest things to do. This should be paid back immediately.

  3. Bill Hattersley avatar

    My understanding was that Nick Read’s “job” was to convince the enquiry that POL had made sufficient changes so that another Horizon type scandal could never occur again.

    If so, he has failed dismally.

  4. Listening to days of questioning of Nick Read I have to ask….What exactly has this man achieved in 5 years in post?
    It appears there are numerous projects ongoing, none appear to have been completed or achieved any results.
    We have gone from years and years of the extremely overused Post Office spouting of “robust” which is a word I would now happily see banished from the English language thanks to them to Nick Read spouting “we are making changes” and “we still have much to do” .
    You have had five years for goodness sake. Any business leader worth their salt would have made the necessary changes, as in completed the tasks!
    Mr Read and others are paid extremely well for doing nothing , achieving nothing.
    The same old excuses are being made…….”it is a complex business”

    He is very good at obvuscating facts and avoiding direct answers to very important questions. His cleverly worded statements suggest achievements and changes have occurred but when this is drilled into by the outstanding Mr Beer we find that those statements are hugely misleading.
    Statistics provided by him from numerous internal surveys try to paint a picture of improvements made year on year, including colleague engagement etc but it transpires that these quoted survey results do not include sub postmasters. Apparently sub postmaster surveys were carried out separately to these stated results. Their results were not included in his statement ! Obvuscation.
    Documentation, contracts etc all produced as early as this year still contains onerous wording and have altered little from that of old. Ambiguity still reigns supreme and sub postmasters are still at threat that they will be pursued. Why after all this time has this not been changed. If sub postmasters are truly as important as the Post Office claims then why are they not being treated as such. There still seems to be a them and us scenario despite the opposite scenario being spouted to the media.
    Multiple committees achieving nothing.
    Still lack of communication flow throughout the business.
    Vast amounts of money are being wasted on engaging external agencies to formulate reports and plans on multiple topics all of which do not result in anything. Answering questions that seemingly the board are unable to answer themselves. Very basic questions which they should know the answer to as Mr Beer so beautifully illustrated. It is not rocket science.
    An IT project so seriously overschedule and worse exceedingly over budget £ 180m to £ 1billion
    Who is accountable? Who is responsible?
    Post Office blame government for interfering and making things more complicated and want more autonomy. Really? I certainly wouldn’t trust the Post office leadership to manage their way out of a paper bag.
    Government try to maintain distance and therefore responsibility for this entire debacle of a business, but they are supposed to be the owners. They should be holding the execs to account but I suppose you need people with the business acumen to be able to do that.
    It beggars belief that even today, the Post Office business can operate in such a manner. So much for governance! They haven’t changed, it is all top show.
    Having followed much of the inquiry to date it has been blatantly obvious who are the honourable participants, the likes of Sir Alan Bates, Lord Arbuthnott, Second Sight, Saf Ismail and Elliot Jacobs. I include you Nick in this cohort of course for all your hard work.
    Sadly the majority of Post Office and government participants have been shown to be arrogant, self-serving, utter incompetents, dishonest, tone deaf and dimwits.
    It really does need rebuilding from scratch.
    I cannot imagine what it is like for those poor sub postmasters having to witness the bullshit that comes out of this inquiry. I have no doubt they are no longer shocked by what they hear as I don’t think any of the general public are anymore but it is certainly anger inducing to the extreme.
    Just pay up, pay the redress NOW. If you can allow an IT budget to balloon from 180m
    to 1 billion you can damn well pay the redress owed to sub postmasters, in full.

  5. Families ruined, lives destroyed and still the suffering continues.

  6. This guy gives me the impression of being a slippery, prize waffler – his definition of a shareholder shows the slippery waffling which appears to be all too common in British society and business. Seems to be a a typical pattern in these CEOs – they take huge renumerations yet seem to be little engaged with the job.

  7. What an awful man Nick Read is – he lies, waffles and obfuscates continually. All in that confident tone that he seems to believe that POL is lucky to have him. I hope no-one else ever hires him again.

  8. I don’t think Read was by lying by omission at all, but that’s because I believe Read IS lying about POL wanting to relinquish control of the compensation schemes being their “settled view”. (In the same way that I believe Read is lying about the Govt not having a tight rein on the purse strings with regard to SPMs compensation pay-outs.)
    I believe POL will do absolutely everything it can to delay payment to wronged SPMs – the email chain Ed Henry KC took Read to yesterday afternoon, between Mark Underwood, Ben Foat and Rodric Williams, laid out their appalling attitude very clearly. In the email chain, the three of them discussed the possibility of SPMs having to pay a fee to join any of the compensation schemes and Mark Underwood wrote: “My strong view is that you cannot seek payment from applicants – however small and regardless of the rationale behind it. Optically this would be extremely challenging and would be a position that I believe the business would struggle to maintain under political and media pressure.” So far so good. However, he then goes on: “I think you can achieve the same desired outcome through having a very tight and clearly communicated set of eligibility criteria and requirements in terms of the documentation applicants have to provide in order to be accepted into the scheme.” In short, set the eligibility criteria SO tight, and make the documentation requirements SO onerous, that the overwhelming majority of wronged SPMs will struggle to make a successful claim for a fair amount commensurate with their loss – this is indeed POL’s “desired outcome”. And despite all of Read’s self-satisfied waffle, we KNOW that ‘obfuscate and delay’ is POL’s real settled view because we’ve seen this in action with SPMs submitting their claims plus the associated documentary evidence (assuming they can obtain it) only to be repeatedly asked for yet more documentation. The BBC’s Emma Simpson revisited 91yr old former SPM, Betty Brown, earlier this week on a day when having submitted all documentation she has with her claim to POL, she received a letter from them asking for yet MORE documentation.
    We see you, Nick Read, and we see the cynical behaviour of the likes of Underwood, Foat and Williams which demonstrates what your REAL “settled view” is – the written communications you all thought would never come to light say it all. Utterly reprehensible. The management of the four compensation schemes MUST be taken out of the hands of POL!

  9. Nick Greed, Post Office CEO, can’t depart soon enough.

  10. Had to rewind that part of the proceedings you have quoted above as could not comprehend what I was hearing. Sounded even more shocking on a second listen.

    1. What time is that exchange?

      1. From 1hr 55mins for the email disclosure, but as always Mr Henry’s questioning is always worth a watch

  11. If only any of this was shocking. POL redefines incompetence daily…

  12. The DBT continue to delay payments themselves. They ask for legal opinion on every aspect. That takes 10 days. Request for more information. More legal opinion, another 10 days, and on it goes!

  13. Please note, I am one of the Sub Postmasters who was prosecuted for false accounting in 2001,I have suffered in silence since 2001.

    I received my interim payment of £69 K two years ago and I have been waiting for my full settlement since,I lost everything I worked for, my wife left several years ago, i live on my own,my wife had miss carriages during pregnancy and we do not have children.

    1. I’m so sorry for everything you’ve lost. £69k doesn’t even remotely compensate you and I’m sure your full settlement won’t either, but POL should still pay it – QUICKLY.

    2. Niser, you live alone now but believe me you have an entire country with you. Don’t stay silent because millions of decent honest people are listening to you and all other wrongly prosecuted SPMs. You made the first step by posting on Nicks blog, now keep talking about your experience…….because we are listening and we do care.

      1. Well said Paul. We are with you Nisar and we won’t let these barstewards off the hook until they have paid up and been locked up!

    3. We are all outraged. You must get your final settlement quickly but no payment can compensate for a life blighted in this way. I can’t imagine how you manage your distress and anger at your treatment.

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