Connect with us

Published

on

Senior executives at the Post Office suggested that “lots and lots of cash lying around in unexpected places” might have meant sub-postmasters were led “into temptation”, rather than accept IT failings, an official inquiry has heard.

The inquiry into faulty Horizon IT software at the Post Office, and the associated prosecution of hundreds of sub-postmasters for theft and false accounting, heard evidence from former North East Hampshire MP Lord Arbuthnot on Wednesday.

He was a champion of victims in the late 2000s and 2010s and appeared in the ITV drama Mr Bates vs The Post Office, which reinvigorated interest in the scandal’s miscarriages of justice.

As well as those who were wrongly prosecuted many more wracked up significant debts, lost their homes, were ostracised from their communities and suffered ill health, while some left the country.

Read more:
More than £1m claimed as ‘profit’ may have come from victims

Lord Arbuthnot was played by actor Alex Jennings in Mr Bates vs The Post Office. Pic: Little Gem / ITV Studios
Image:
Lord Arbuthnot was played by actor Alex Jennings in Mr Bates vs The Post Office. Pic: Little Gem / ITV Studios

Rather than accept the IT system’s failings, senior officials within the Post Office told Lord Arbuthnot that sub-postmasters were led “into temptation”, he told the inquiry.

“Alice Perkins [former Post Office chair] and Paula Vennells [former chief executive] had both raised the problem of there being lots and lots of cash lying around in unexpected places,” Lord Arbuthnot said.

“I do not know whether that point – which Alice Perkins made strongly – affected her approach towards the honesty or otherwise of sub-postmasters,” the peer added in his witness statement to the inquiry.

Minutes recorded of what Ms Vennells said during a meeting with MPs in 2012 read: “It appears that some sub-postmasters have been borrowing money from the Post Office account/till in the same way they might do in a retail business, but this is not how the Post Office works.

“Post Office cash is public money and the Post Office must recover it if any goes missing.”

Lord Arbuthnot arrives to give evidence to the Post Office Horizon IT inquiry. Pic: PA
Image:
Lord Arbuthnot arrives to give evidence to the Post Office Horizon IT inquiry. Pic: PA

Unsafe convictions

As early as March 2013 Lord Arbuthnot said he told the Post Office that its convictions of sub-postmasters could be unsafe as evidence of flaws within Horizon had been unearthed by forensic accountants Second Sight, who were hired by the organisation to investigate allegations.

Lord Arbuthnot felt this evidence undermined convictions and showed there was a risk the Post Office wasn’t doing its duty to disclose any evidence that might undermine its prosecution case or help sub-postmaster defendants.

Second Sight found Fujitsu – the company behind the Horizon system – could access Post Office accounts remotely.

Lord Arbuthnot told the inquiry: “If Fujitsu or the Post Office can manipulate a sub-postmaster’s account without the post business knowing about it, then how can you prosecute that sub-postmaster for something which could not be provably down to the postmaster?”

He added this fact alone undermined the “standard of proof required in a criminal trial”.

Follow Sky News on WhatsApp
Follow Sky News on WhatsApp

Keep up with all the latest news from the UK and around the world by following Sky News

Tap here

‘Profoundly wrong’

Sub-postmaster victims of the faulty software were told they were the only ones having problems with Horizon – something Lord Arbuthnot found “profoundly wrong” and intimidating, as he was aware of several cases.

“There was something at the back of my mind which continued to trouble me, which was these people who were being told, ‘you are the only person this is happening to’.

“And that struck me as being profoundly wrong, because first – it was obviously disprovable. They were not the only people it was happening to.

“Second, it was isolating those sub-postmasters and sub-postmistresses so they could not get support from others in the same position.

“And third, it had an element of intimidation about it, all of which set the Post Office and its way of operating with its sub-postmasters in a bad light.”

Lord Arbuthnot arrives at the Department for Business and Trade, Old Admiralty Building, central London, ahead of a meeting of the independent Horizon Compensation Advisory Board. Picture date: Wednesday January 10, 2024.
Image:
Lord Arbuthnot arrives at the Post Office inquiry. Pic: PA

‘Government refusing to take responsibility’

The whole nature of the government’s hands-off approach to the Post Office, which it entirely owns, came in for criticism from Lord Arbuthnot as the inquiry heard of the numerous government ministers he contacted about the injustices.

“What this arm’s length arrangement essentially means is the government is refusing to take the responsibilities that go with ownership,” he said.

“If you have an organisation that is as important to the community as the Post Office is, then the people have got to be able to have proper control over it.”

Lord Arbuthnot also accused the Post Office of “stringing MPs along” in a “behind-the-scenes deception process” to cover up issues with the Horizon system.

He said the organisation grew increasingly defensive in 2013 after the investigation by Second Sight.

The peer said: “They knew there was a large number of bugs in the system that they hadn’t told MPs about.

“That’s what I know now, but I didn’t know that then.”

The peer also told the inquiry he was not satisfied with the “brush-off” response he received from Ms Vennells after he raised concerns over sub-postmaster complaints about the Horizon system.

During her time as managing director, Ms Vennells defended the Horizon system when it was queried by the former MP, describing it as “robust”.

Paula Vennells
Image:
Paula Vennells during her time at the Post Office in 2016. Pic: PA

In a statement this week after the inquiry resumed, Paula Vennells said: “I continue to support and focus on cooperating with the inquiry and expect to be giving evidence in the coming months.

“I am truly sorry for the devastation caused to the sub-postmasters and their families, whose lives were torn apart by being wrongly accused and wrongly prosecuted as a result of the Horizon system.

“I now intend to continue to focus on assisting the inquiry and will not make any further public comment until it has concluded.”

Continue Reading

Business

Ryanair urges EU chief to ‘quit’ over air traffic strike disruption

Published

on

By

Ryanair urges EU chief to 'quit' over air traffic strike disruption

The boss of Ryanair has told Sky News the president of the European Commission should “quit” if she can’t stop disruption caused by repeated French air traffic control strikes.

Michael O’Leary, the group chief executive of Europe’s largest airline by passenger numbers, said in an interview with Business Live that Ursula von der Leyen had failed to get to grips, at an EU level, with interruption to overflights following several recent disputes in France.

The latest action began on Thursday and is due to conclude later today, forcing thousands of flights to be delayed and cancelled through French airspace closures.

Money latest: ‘Lifeblood of mortgage market’ enjoying lower rates

Mr O’Leary told presenter Darren McCaffrey that French domestic flights were given priority during ATC strikes and other nations, including Italy and Greece, had solved the problem through minimum service legislation.

He claimed that the vast majority of flights, cancelled over two days of action that began on Thursday, would have been able to operate under similar rules.

Mr O’Leary said of the EU’s role: “We continue to call on Ursula von der Leyen – why are you not protecting these overflights, why is the single market for air travel being disrupted by a tiny number of French air traffic controllers?

More from Money

File photo dated 02/09/22 of a Ryanair Boeing 737-8AS passenger airliner comes in to land at Stansted Airport in Essex. Ryanair has revealed around 63,000 of its passengers saw their flights cancelled during last week's air traffic control failure which caused widespread disruption across the industry and left thousands of passengers stranded overseas. In its August traffic update, the Irish carrier said more than 350 of its flights were cancelled on August 28 and 29 due to the air traffic contr
Image:
Ryanair has cancelled more than 400 flights over two days due to the action in France. File pic: PA

“All we get is a shrug of their shoulders and ‘there’s nothing we can do’. We point out, there is.”

He added: “We are calling on Ursula von der Leyen, who preaches about competitiveness and reforming Europe, if you’re not willing to protect or fix overflights then quit and let somebody more effective do the job.”

The strike is estimated, by the Airlines for Europe lobby group to have led to at least 1,500 cancelled flights, leaving 300,000 travellers unable to make their journeys.

Ryanair chief executive Michael O'Leary speaks to journalists during a press conference at The Alex Hotel in Dublin. Picture date: Thursday October 3, 2024.
Image:
Michael O’Leary believes the EU can take action on competition grounds. Pic: PA

Ryanair itself had axed more than 400 flights so far, Mr O’Leary said. Rival easyJet said on Thursday that it had cancelled 274 services over the two days.

The beginning of July marks the start of the European summer holiday season.

The French civil aviation agency DGAC had already told airlines to cancel 40% of flights covering the three main Paris airports on Friday ahead of the walkout – a dispute over staffing levels and equipment quality.

Mr O’Leary described those safety issues as “nonsense” and said twhile the controllers had a right to strike, they did not have the right to close the sky.

DGAC has warned of delays and further severe disruption heading into the weekend.

Many planes and crews will be out of position.

Mr O’Leary is not alone in expressing his frustration.

The French transport minister Philippe Tabarot has denounced the action and the reasons for it.

“The idea is to disturb as many people as possible,” he said in an interview with CNews.

Passengers are being advised that if your flight is cancelled, the airline must either give you a refund or book you on an alternative flight.

If you have booked a return flight and the outbound leg is cancelled, you can claim the full cost of the return ticket back from your airline.

Continue Reading

Business

CBI kicks off search for successor to ‘saviour’ Soames

Published

on

By

CBI kicks off search for successor to 'saviour' Soames

The CBI has begun a search for a successor to Rupert Soames, its chairman, as it continues its recovery from the crisis which brought it to the brink of collapse in 2023.

Sky News has learnt that the business lobbying group’s nominations committee has engaged headhunters to assist with a hunt for its next corporate figurehead.

Mr Soames, the grandson of Sir Winston Churchill, was recruited by the CBI in late 2023 with the organisation lurching towards insolvency after an exodus of members.

Money latest: Has bond market calmed after chancellor’s tears?

The group’s handling of a sexual misconduct scandal saw it forced to secure emergency funding from a group of banks, even as it was frozen out of meetings with government ministers.

One prominent CBI member described Mr Soames on Thursday as the group’s “saviour”.

“Without his ability to bring members back, the organisation wouldn’t exist today,” they claimed.

More from Money

Rupert Soames
Image:
Rupert Soames. Pic: Reuters

Read more:
Starmer could be ousted as PM ‘within months’
Reeves’s tears a hard watch but reminder of her challenges

Mr Soames and Rain Newton-Smith, the CBI chief executive, have partly restored its influence in Whitehall, although many doubt that it will ever be able to credibly reclaim its former status as ‘the voice of British business’.

Its next chair, who is also likely to be drawn from a leading listed company boardroom, will take over from Mr Soames early next year.

Egon Zehnder International is handling the search for the CBI.

“The CBI chair’s term typically runs for two years and Rupert Soames will end his term in early 2026,” a CBI spokesperson said.

“In line with good governance, we have begun the search for a successor to ensure continuity and a smooth transition.”

Continue Reading

Business

Ryanair and easyJet cancel hundreds of flights over air traffic control strike

Published

on

By

Ryanair and easyJet cancel hundreds of flights over air traffic control strike

Ryanair and easyJet have cancelled hundreds of flights as a French air traffic controllers strike looms.

Ryanair, Europe’s largest airline by passenger numbers, said it had axed 170 services amid a plea by French authorities for airlines to reduce flights at Paris airports by 40% on Friday.

EasyJet said it was cancelling 274 flights during the action, which is due to begin later as part of a row over staffing numbers and ageing equipment.

Money latest: Bond market fires warning shot at Downing St

The owner of British Airways, IAG, said it was planning to use larger aircraft to minimise disruption for its own passengers.

The industrial action is set to affect all flights using French airspace, leading to wider cancellations and delays across Europe and the wider world.

Ryanair said its cancellations, covering both days, would hit services to and from France, and also flights over the country to destinations such as the UK, Greece, Spain and Ireland.

More from Money

Group chief executive Michael O’Leary has campaigned for a European Union-led shake-up of air traffic control services in a bid to prevent such disruptive strikes, which have proved common in recent years.

He described the latest action as “recreational”.

Michael O'Leary. Pic: Reuters
Image:
Michael O’Leary. Pic: Reuters

“Once again, European families are held to ransom by French air traffic controllers going on strike,” he said.

“It is not acceptable that overflights over French airspace en route to their destination are being cancelled/delayed as a result of yet another French ATC strike.

“It makes no sense and is abundantly unfair on EU passengers and families going on holidays.”

Ryanair is demanding the EU ensure that air traffic services are fully staffed for the first wave of daily departures, as well as to protect overflights during national strikes.

“These two splendid reforms would eliminate 90% of all ATC delays and cancellations, and protect EU passengers from these repeated and avoidable ATC disruptions due to yet another French ATC strike,” Mr O’Leary added.

Continue Reading

Trending