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A victim of the Post Office scandal who was wrongly jailed while pregnant has rejected an apology from a former Post Office executive – who celebrated her conviction as “brilliant news” at the time.

Former managing director David Smith made the apology to the Post Office Horizon IT inquiry, saying: “I would absolutely never think that it was ‘brilliant news’ for a pregnant woman to go to prison and I am hugely apologetic that my email can be read as such.”

That victim, Seema Misra – who was sentenced to 15 months in jail and served four months while pregnant – said it wasn’t good enough.

“They’re apologising now, but they missed so many chances before,” Ms Misra told Sky News.

“We had my conviction overturned, nobody came at that time to apologise. And now they just suddenly realised that when they have to appear in a public inquiry, they have to apologise.”

The inquiry is investigating who knew what and when about the faulty accounting software that ruined lives, resulted in huge debts, ill-health, ruined reputations, and led to the conviction of hundreds of innocent sub-postmasters for theft and false accounting.

The scandal received renewed attention after an ITV drama, Mr Bates vs the Post Office, aired early this year and brought to life how Horizon software, developed by Fujitsu, incorrectly generated financial shortfalls at Post Office branches throughout the UK.

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‘Brilliant news’

In 2010 Mr Smith emailed Post Office prosecutors, congratulating them on a job well done in jailing Ms Misra for theft.

“Brilliant news. Well done. Please pass on my thanks to the team,” he said.

The message was intended to celebrate proving Horizon was robust, Mr Smith said, rather than someone going to prison.

“Regardless of the result, I would have thanked the team for their work on the case.”

“However, seeing this email in the light of what I know now, I understand the anger and the upset that it will have caused and sincerely apologise for that,” Mr Smith’s evidence statement to the inquiry said.

“It is evident that my email would have caused Seema Misra, and her family, substantial distress to read and I would like to apologise for that.”

Ms Misra’s conviction was overturned by the Court of Appeal in 2021 but the memories of her time in prison still give her nightmares, she said.

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Sub-postmistress wrongly jailed while pregnant

A ‘test case’ that added confidence in Horizon

Mr Smith told the inquiry Ms Misra had been used as a “test case”.

The success of the case led to more confidence in Horizon, he said.

He said: “I do know that from this point forward, we didn’t really think about whether we should have an inquiry [into Horizon] again while I was at the Post Office and certainly if you looked at board minutes from the month after and the month after that which had been shared with me, we’re not talking about Horizon at all.”

In response, Ms Misra told Sky News: “How can they do a test on a human being?”

“I’m a living creature,” she added.

“I heard that my case has been used as a test case before. But hearing it again and again, it’s just annoying. It makes me more and more angry, to be honest.”

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A wrongly convicted pregnant sub-postmaster has told Sky News she

Flora Page, a barrister representing some sub-postmasters, said the trial of Ms Misra was being “actively used by Post Office as part of [its] campaign to claim that Horizon was robust”.

This was denied by Mr Smith.

Ms Page questioned Mr Smith at the inquiry about what the Post Office knew before putting Ms Misra behind bars and said prosecutors were alerted to bugs in Horizon on a Friday.

On the following Monday Ms Misra’s trial began, the inquiry heard.

Documentation submitted to the inquiry showed a Fujitsu witness in Ms Misra’s case was present at a pre-trial meeting where bugs in Horizon were being discussed, Ms Page said.

The meeting “made it perfectly plain that Fujitsu had the power to remotely alter branch accounts”, as the option was put forward as a way to resolve the receipts and payments mismatch bug in Horizon, she added.

At the time, Mr Smith said, he was unaware of the meeting and documents.

Former managing director of Post Office Ltd David Smith, arrives to give evidence to the Post Office Horizon IT inquiry.
Pic: PA
Image:
Former managing director of Post Office Ltd David Smith, arrives to give evidence to the Post Office Horizon IT inquiry.
Pic: PA

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‘Inherent risks’ in Post Office prosecuting

The Post Office was allowed to investigate and bring prosecutions itself and did not require Crown Prosecution Service (CPS) involvement.

Reflecting on how prosecutions were carried out, Mr Smith told the inquiry there are “risks” within the system.

In-house prosecution “can lead you to a position where you might not think as independently as you should do about the quality of the information”, he said.

None of these issues occurred to Mr Smith during his tenure.

He said: “I cannot recall thinking that any risk or compliance issues arose from [the Post Office] undertaking this role, but with the benefit of hindsight, and in light of the wrongful prosecutions, I can see the inherent risks in the prosecutions taking place ‘in house’ and not by an independent enforcement authority.”

At the time the organisation was too focused on other issues, such as the Post Office separating from Royal Mail, the new coalition government, and the need to refinance the business, he said.

The company board was “pre-occupied” with investment from the government, his witness statement said.

“Therefore, although we were aware of the case, at board level we were not heavily focused on it as our attention was on keeping the business running,” he added.

It was down to “institutional bias” that led executives not to interrogate what was being said by sub-postmasters and the public about Horizon, he added.

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Thousands of jobs to go at Bosch in latest blow to German car industry

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Thousands of jobs to go at Bosch in latest blow to German car industry

Bosch will cut up to 5,500 jobs as it struggles with slow electric vehicle sales and competition from Chinese imports.

It is the latest blow to the European car industry after Volkswagen and Ford announced thousands of job cuts in the last month.

Cheaper Chinese-made electric cars have made it trickier for European manufacturers to remain competitive while demand has weakened for the driver assistance and automated driving solutions made by Bosch.

The company said a slower-than-expected transition to electric, software-controlled vehicles was partly behind the cuts, which are being made in the car parts division.

Demand for new cars has fallen overall in Germany as the economy has slowed, with recession only narrowly avoided in recent years.

The final number of job cuts has yet to be agreed with employee representatives. Bosch said they would be carried out in a “socially responsible” way.

About half the job reductions would be at locations in Germany.

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Bosch, the world’s biggest car parts supplier, has already committed to not making layoffs in Germany until 2027 for many employees, and until 2029 for a subsection of its workforce. It said this pact would remain in place.

The job cuts would be made over approximately the next eight years.

The Gerlingen site near Stuttgart will lose some 3,500 jobs by the end of 2027, reducing the workforce developing car software, advanced driver assistance and automated driving technology.

Other losses will be at the Hildesheim site near Hanover, where 750 jobs will go by end the of 2032, and the plant in Schwaebisch Gmund, which will lose about 1,300 roles between 2027 and 2030.

Bosch’s decision follows Volkswagen’s announcement last month it would shut at least three factories in Germany and lay off tens of thousands of staff.

Its remaining German plants are also set to be downsized.

While Germany has been hit hard by cuts, it is not bearing the brunt alone.

Earlier this week, Ford announced plans to cut 4,000 jobs across Europe – including 800 in the UK – as the industry fretted over weak electric vehicle (EV) sales that could see firms fined more for missing government targets.

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Cambridge college puts O2 arena lease up for sale

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Cambridge college puts O2 arena lease up for sale

Cambridge University’s wealthiest college is putting the long-term lease of London’s O2 arena up for sale.

Sky News has learnt that Trinity College has instructed property advisers to begin sounding out prospective investors about a deal.

Trinity, which ranks among Britain’s biggest landowners, acquired the site in 2009 for a reported £24m.

The O2, which shrugged off its ‘white elephant’ status in the aftermath of its disastrous debut in 2000, has since become one of the world’s leading entertainment venues.

Operated by Anschutz Entertainment Group, it has played host to a wide array of music, theatrical and sporting events over nearly a quarter of a century.

The opportunity to acquire the 999-year lease is likely to appeal to long-term income investment funds, with real estate funds saying they expected it to fetch tens of millions of pounds.

Trinity College bought the lease from Lend Lease and Quintain, the property companies which had taken control of the Millennium Dome site in 2002 for nothing.

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The college was founded by Henry VIII in 1546 and has amassed a vast property portfolio.

It was unclear on Friday why it had decided to call in advisers at this point to undertake a sale process.

Trinity College Cambridge did not respond to two requests for comment.

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Surprise fall in retail sales a sign economy is slowing

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Surprise fall in retail sales a sign economy is slowing

Budget fears and unseasonably warm weather led to consumers spending far less than expected last month, according to official figures.

In a sign of a slowing economy, retail sales fell a sharp 0.7%, the Office for National Statistics (ONS) said.

The fall was larger than expected. A drop of 0.3% was forecasted by economists polled by the Reuters news agency.

Money blog: Energy bills to rise in January

Clothing stores were particularly affected, where sales fell by 3.1% over the month as October temperatures remained high, putting shoppers off winter purchases.

Retailers across the board, however, reported consumers held back on spending ahead of the budget, the ONS added.

Just a month earlier, in September, spending rose by 0.1%.

Despite the October fall, the ONS pointed out that the trend is for sales increases on a yearly and three-monthly basis and for them to be lower than before the COVID-19 pandemic.

Retail sales figures are significant as household consumption measured by the data is the largest expenditure across the UK economy.

The data can also help track how consumers feel about their financial position and the economy more broadly.

Another signal of a slowing economy was the latest growth figures which showed a smaller-than-expected GDP (gross domestic product) measurement.

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Business owners worried after budget

Consumer confidence could be bouncing back

Also released on Friday was news of a rise in consumer confidence in the weeks following the budget and the US election.

Market research company GfK’s long-running consumer confidence index “jumped” in November, the company said, as people intended to make Black Friday purchases.

It noted that inflation has yet to be tamed with people still feeling acute cost-of-living pressures.

It will take time for the UK’s new government to deliver on its promise of change, it added.

A quirk in the figures

Economic research firm Pantheon Macro said the dates included in the ONS’s retail sales figures could have distorted the headline figure.

The half-term break, during which spending typically increases, was excluded from the monthly statistics as the cut-off point was 26 October.

With cold weather gripping the UK this week clothing sales are likely to rise as delayed winter clothing purchases are made, Pantheon added.

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