Civil servants accuse former ministers of ‘cowardly’ blame game over Post Office scandal
Civil servants have hit back at “cowardly” former ministers who have criticised them for their alleged failure to act on the Post Office Horizon scandal.
A blame-game is under way following the ITV drama Mr Bates vs The Post Office, which depicted how hundreds of sub-postmasters and sub-postmistresses were wrongly held responsible for accounting errors created by the faulty Horizon IT software.
Sir Ed Davey and Lord Peter Mandelson, who are both facing questions for their roles as postal affairs minister and business secretary during the scandal, have laid some of the blame at the door of civil servants – with the latter arguing that officials should have been “more focused and cognisant of what was going on” and that they “failed” to protect ministers.
And in an interview with Sky News, Sir Ed, the Liberal Democrat leader, accused officials in the Department for Business, Innovation and Skills of “lying to me” over the scandal.
Politics latest: Post Office investigators accused of behaving like ‘mafia gangsters’
Mark Serwotka, general secretary of the Public and Commercial Services Union, told Sky News that Lord Mandelson’s comments were “just another cowardly example of politicians scrambling to blame others for their own mistakes”.
“Politicians are quick to take credit when things go well. They should be humble and honest enough to take responsibility for their mistakes, and swiftly deliver justice for the wronged sub-postmasters and sub-mistresses.”
Dave Penman, the general secretary of the FDA union for civil servants, branded Sir Ed’s comments “outrageous” and said they were an “act of desperation from a former minister trying to save his own skin”.
“Ed Davey goes beyond what is reasonable to expect from a former minister,” he told Sky News. “If he’s going to repeat this he needs to back up his accusations.”
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‘The Post Office was lying to me’
He added: “Civil servants should rightly be held to account for what they did and didn’t do, but they need an opportunity to defend themselves.”
Between 1999 and 2015, more than 700 people were prosecuted for a variety of offences including theft, fraud and false accounting – causing many to lose their jobs, livelihoods and reputations.
On Wednesday, Rishi Sunak announced that a new law would be introduced to exonerate and compensate those caught up in the Horizon scandal and that those who were part of the group litigation order against the Post Office would also be eligible for an upfront payment of £75,000.
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Sub-postmasters were ‘guinea pigs’
Sir Ed – who was postal affairs minister between 2010 and 2012 during the coalition government – has attracted particular criticism after it emerged he refused to meet sub-postmaster Alan Bates, whom the ITV drama is named after, on a number of occasions – saying in a short three-paragraph letter that a meeting “wouldn’t serve any purpose”.
However, Sir Ed did later meet with Mr Bates and was the first minister on public record to do so. It is understood he then asked his officials to follow up on the concerns raised by the sub-postmaster at their meeting.
Speaking to Sky News this week, Sir Ed said: “I wish I’d known then what we all know now. The Post Office was lying on an industrial scale to me and other ministers.
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Wrongly convicted postmaster describes ordeal
“When I met Alan Bates and listened to his concerns, I put those concerns to officials in my department, to the Post Office and to the National Federation of Postmasters and it’s clear they all were lying to me.”
Sir Ed was joined in his criticism of the civil service by Lord Mandelson, who was in charge of the oversight the Post Office from 2008 until his departure in 2010.
In his Times Radio podcast aired earlier this week, Lord Mandelson said: “I’m not trying to point the finger at particular civil servants obviously,” he added, “but they should have been much more focused and cognisant of what was going on.
“And their job is to, in a sense, both to protect ministers and serve the wider public interest, and in this instance that failed.”
Read more:
Post Office scandal: Investigators ‘offered bonuses’ to prosecute sub-postmasters
Sub-postmasters used as ‘guinea pigs’ to grind out issues in Horizon, says expert
Separately, it has emerged that Lord Mandelson was made personally aware of the Horizon issue, after an email released under the Freedom of Information (FOI) showed they were highlighted to him in 2009 by Tory peer Lord Arbuthnot.
However, rather than respond himself, the FOI instead showed a response from his junior business minister, and now close ally of Sir Keir Starmer, Pat McFadden, who said there was “nothing to indicate that there are any problems with the Horizon system”.
A spokesperson for the Liberal Democrats said: “Ed has been clear that Post Office managers lied to the victims, to judges and to ministers, those lies circulated across the entire system.
“It is also the case that like all former ministers and post office managers, civil servants – particularly those sitting on the post office board, must face the inquiry and answer questions.
“The priority now needs to be getting justice and compensation for the victims.”
The Labour Party has been approached for comment.
Despite the ongoing market meltdown on US trade tariffs, executives at major cryptocurrency firms Messari and Sygnum are bullish on institutional Bitcoin adoption later in 2025.
Speaking on a panel at Paris Blockchain Week on April 8, Messari CEO Eric Turner and Sygnum Bank co-founder Thomas Eichenberger said they expect a significant shift in the banking sector’s involvement with crypto in the second half of the year.
According to the executives, the global banking push into Bitcoin (BTC) services has great potential to happen in the second half of 2025 as regulators embrace crypto, including stablecoins and crypto services by banks.
“I think we’re probably looking at a muted Q2, but I’m really excited for Q3 and Q4,” Messari’s Turner said during the panel discussion moderated by Cointelegraph CEO Yana Prikhodchenko, forecasting “really interesting” things coming to the crypto market in 2025.
Crypto adoption is not just about Trump
While some investors focus on the pro-crypto stance of US President Donald Trump, Turner emphasized that broader regulatory momentum is what matters most.
“When you look at the potential of having market structure regulation in the US, stablecoin regulation, and just the fact that across the board, not just President Trump himself, but the SEC and all these regulatory industries are really embracing crypto,” Turner said.
Paris Blockchain Week’s panel with Cointelegraph CEO Yana Prikhodchenko, Bancor co-founder Eyal Hertzog, Sygnum co-founder Thomas Eichenberger, Messari CEO Eric Turner, AWS fintech leader Alex Matsuo and Near chief operating officer Chris Donovan. Source: Cointelegraph
Sygnum co-founder Thomas Eichenberger said international banks with US branches are also poised to enter the market once the legal landscape becomes clearer:
“I think it’s a matter of fact that US banks are preparing to be able to offer crypto custody and at least crypto spot trading services anytime soon.”
“I think by then I would agree with you, Eric,” he continued, projecting a continued phase of market uncertainty until the US establishes a clear regulatory framework.
Related: Ripple acquires crypto-friendly prime broker Hidden Road for $1.25B
Banks are no longer afraid of Bitcoin regulators
With the establishment of clear crypto rules for banks in the US, there will be a rush for crypto services by large international banks that are incorporated outside of the US but have a US-based presence, Eichenberger said.
“Some of them may have had their strategic plans in their cupboard to offer crypto-related services, but have been afraid that at some point they will be gone after by any of the US regulatory authorities,” he said, adding:
“Now I think there’s no one to be afraid of anymore in terms of regulatory authorities worldwide. So I think many of the large international banks will launch this year.”
Magazine: Financial nihilism in crypto is over — It’s time to dream big again
Global trade tensions triggered by US President Donald Trump’s sweeping tariff measures may come to an end with a potential deal with China as investors remain concerned about escalation from both sides.
Trump’s April 2 announcement of reciprocal import tariffs sent shockwaves through global equity and crypto markets. The measures include a 10% baseline tariff on all imported goods, effective April 5, with higher levies — such as a 34% tariff on Chinese imports — set to begin on April 9.
However, the tariff negotiations may only be “posturing” for the US to reach an agreement with China, according to Raoul Pal, founder and CEO of Global Macro Investor.
“In the end, almost all the other tariff negotiations and rhetoric are all about getting China to agree a deal,” Pal wrote in an April 8 X post, adding:
“That is the big prize and both China and the US understand it and need it. Everything else is negotiation posturing. China needs a weaker $ and the US needs tariffs.”
Source: Raoul Pal
“Also, the US is trying to shut down China tariff arbitrage using other channels such as Mexico or Vietnam,” Pal said.
Related: Bitcoin price can hit $250K in 2025 if Fed shifts to QE: Arthur Hayes
China retaliates with new tariffs
Considering China’s latest retaliatory measures, a resolution remains unlikely in the short term.
In response to US tariffs, China imposed a 34% tariff on all US imports effective April 10, media outlet Xinhua News reported on April 4. China’s foreign ministry also vowed to “fight till the end” against Trump’s tariffs, which it called “bullying” by the world’s largest economy.
China overtakes the US in global trade. Source: Econovis
China overtook the US in 2012 to become the world’s largest trading nation by the total value of exports and imports, surpassing $4 trillion in goods trade that year, according to The Guardian.
Crypto markets watch trade outcome closely
As the trade dispute continues to evolve, analysts say a potential agreement between the two global superpowers could serve as a key catalyst for recovery in digital asset markets.
Crypto markets have a 70% chance to bottom by June 2025 before recovering, Nansen analysts predicted.
Related: Crypto market bottom likely by June despite tariff fears: Finance Redefined
Investor appetite for risk assets such as Bitcoin will depend on the global tariff responses from other countries, according to Nicolai Sondergaard, a research analyst at Nansen.
“We have reached somewhat of a local bottom in regard to tariffs and the impact on prices,” the analyst said during Cointelegraph’s Chainreaction live show on X, adding:
“Trump came out guns blazing, and we’ve mostly seen the worst from the US side, so we’ll see if other countries are willing to drop some of the tariffs because it’s very likely the US will do the same.”
Magazine: Bitcoin ATH sooner than expected? XRP may drop 40%, and more: Hodler’s Digest, March 23 – 29
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