A Post Office boss blamed cash shortfalls caused by computer glitches on branch managers “with their hand in the till”.
An email written by Alan Cook, who was managing director of the group from 2006 to 2010, has been read out to the public inquiry into the Horizon IT scandal.
Giving evidence on Friday, he said it was an expression he would “regret for the rest of my life”.
Mr Cook was at the helm when about 200 prosecutions were brought against subpostmasters.
Despite being in charge, he said he was “unaware” it was the Post Office that had brought criminal proceedings against individuals – and that during his time in the top job, it did not feel like the Post Office “had a crisis on its hands”.
An email sent by Mr Cook in October 2009 to a Royal Mail Group press officer said: “For some strange reason there is a steadily building nervousness about the accuracy of the Horizon system and the press are on it now as well.
“It is… strange in that the system has been stable and reliable for many years now and there is absolutely no logical reason why these fears should now develop.
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“My instincts tell me that, in a recession, subbies (subpostmasters) with their hand in the till choose to blame the technology when they are found to be short of cash.”
Pressed over his remarks at the inquiry, Mr Cook said: “Well that’s an expression I will regret for the rest of my life. It was an inappropriate thing to put in an email – not in line with my view of subpostmasters.”
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Hundreds of people were wrongly convicted of stealing after bugs and errors in the Horizon accounting system made it appear as though money was missing at their branches.
Victims faced prison and financial ruin, others were ostracised by their communities, while some took their own lives.
Fresh attention was brought to the scandal after ITV broadcast the drama Mr Bates Vs The Post Office, prompting government action.
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Alan Bates speaks at Post Office inquiry
Earlier, as he began giving evidence, Mr Cook said he wanted to “put on record most strongly my personal apology and sympathies with all subpostmasters their families and those affected by this”.
He also told the inquiry: “I was unaware that the Post Office were the prosecuting authority.
“I knew there were court cases but didn’t realise that the Post Office in about two-thirds of the cases had initiated the prosecution as opposed to the DPP (director of public prosecutions) or the police.”
During his time as non-executive director of the Post Office, Mr Cook said it was his “regret” he failed to properly understand minutes of a meeting which said the organisation had a “principle of undertaking prosecutions”.
He said: “It never occurred to me reading that that the Post Office was the sole arbiter of whether or not that criminal prosecution would proceed.”
Mr Cook added: “I had never come across a situation before that a trading entity could initiate criminal prosecutions themselves.
“I’m not blaming others for this, it’s my misunderstanding but I’ve just not encountered that type of situation.”
He acknowledged he should have known the Post Office was making prosecutorial decisions.
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Jailed subpostmistress watches evidence
Counsel to the inquiry Sam Stevens asked: “Your evidence is still that in no point in the years that you were the managing director, (nobody) in the security or investigations team raised the fact that they made decisions to prosecute?”
Responding, Mr Cook said: “That is my position, definitely.”
He went on: “I never asked that question – well I did obviously when we got to the Computer Weekly article (in 2009) which we’ll get to but prior to that point I had gone through not picking up that.
“I’m not blaming them for not spelling it out enough, to be frank I’m blaming me for not picking up on it.”
During his time at the Post Office, Mr Cook said in his witness statement it was not apparent there was a problem with the Horizon system, pointing out that financial audits “did not identify a systemic issue”.
He added: “It is a matter of deep regret to me that I did not recognise that the early issues raised in 2009 were an indication of a systemic issue before I left POL (Post Office Limited) in February 2010.
“In addition, I have since learned that the annual rate of prosecutions brought by POL in the seven years prior to my appointment (ie since 1999) had remained steady during that time, and continued to remain steady during my time in office and thereafter. It did not feel, at the time, that POL had a crisis on its hands.”
The use of drones to fly drugs and weapons into UK prisons needs to be tackled “urgently” because it has become a threat to “national security”, the chief inspector of prisons has said.
Charlie Taylor added that police and the prison service had in effect “ceded the airspace” around HMP Manchester and HMP Long Lartin to organised crime gangs who are using the gadgets to deliver contraband to inmates.
The two high security prisons hold some of the most dangerous men in the country, including terrorists and organised crime bosses.
Mr Taylor’s warning comes after inspections of HMP Manchester, based in the city centre, and HMP Long Lartin, in Evesham, Worcestershire, found both prisons had “thriving illicit economies” of drugs, mobile phones and weapons.
Inspectors also found that basic security measures such as protective netting and CCTV had fallen into disrepair.
Some inmates at HMP Manchester, a category B jail which holds a small number of category A prisoners, had burned holes in windows so that they could receive regular deliveries by drone, the HM Inspectorate of Prisons watchdog said as it published the findings of the inspections.
It added that many of the drones had “increasingly large payloads” which “had the potential to lead to serious disruption and even escape”.
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Mr Taylor said: “It is highly alarming that the police and prison service have, in effect ceded the airspace above two high-security prisons to organised crime gangs which are able to deliver contraband to jails holding extremely dangerous prisoners including some who have been designated as high-risk category A.
“The safety of staff, prisoners and ultimately that of the public, is seriously compromised by the failure to tackle what has become a threat to national security.
“The prison service, the police and other security services must urgently confront organised gang activity and reduce the supply of drugs and other illicit items which so clearly undermine every aspect of prison life.”
Inspectors found prisoners had been using the elements from their kettles to burn holes in their “inadequately protected” Perspex windows to allow the “entry of drones laden with contraband”.
The inspections at HMP Manchester and HMP Long Lartin, which took place across September and October 2024, also revealed other serious concerns around safety and security at both sites.
Mr Taylor felt the situation was so bad at HMP Manchester that he issued an urgent notification for improvement to the Justice Secretary Shabana Mahmood.
At Manchester, 39% of prisoners tested positive in mandatory drug tests, while at Long Lartin, 50% of those who responded to the watchdog’s survey said it was easy to get drugs and alcohol.
Violence and self-harm at both prisons was also found to have increased, which the watchdog said was partly driven by drugs and the accompanying debt prisoners found themselves in.
Meanwhile there had been six “self-inflicted deaths” at Manchester since the watchdog’s last inspection in 2021, with a seventh taking place after the most recent visit.
It is now one of the most violent prisons in the country, with a high number of serious assaults against prisoners and staff.
Many officers “lacked confidence, were demoralised, and were struggling to manage experienced prisoners who were serving long sentences for serious crimes”, the watchdog said.
Manchester was also found to have a chronic rodent infestation, while there was widespread dirt, damp and litter at both sites.
Prisoners at Manchester were also found to have used torn-up foam from mattresses and pillows to keep out the cold.
Inspectors found 38% of prisoners there were locked up during the working day and poor attendance at education and work was further fuelling the boredom, drug-taking, self-harm and violence.
At Long Lartin, which houses both category A and B prisoners, a continued lack of in-cell toilets for many prisoners led them to use buckets and throw bags of excrement out of the windows, many of which were not cleared up, the watchdog said.
The Ministry of Justice said in a statement: “This government inherited prisons in crisis – overcrowded, with drugs and violence rife.
“We are gripping the situation by investing in prison maintenance and security, working with the police and others to tackle serious organised crime, and building more prison places to lock up dangerous criminals.”
Reform UK has grown in support to within one percentage point of Labour according to a new poll for Sky News by YouGov which suggests Britain has entered a new era of three-way party politics.
Sir Keir Starmer looks set to spend the parliament locked in a fight with two right-wing parties after Labour support dropped sharply in the first YouGov poll since the general election.
This is the first of YouGov’s weekly voting intention polls for Sky News, shared with The Times.
It reflects a drop in satisfaction with the government, a rise in support for Reform UK, and shows how the Labour vote has split in all directions since the election.
Labour has retained 54% of their vote at the general election – 7% have gone to the Lib Dems, 6% to the Green Party, 5% to Reform UK, 4% to the Tories – while 23% of those polled did not say, did not know or would not vote.
Reform UK’s vote has grown since the general election at the expense of all other parties, with 16% of voters who backed the Tories at the ballot last year now saying they’d support Reform.
The judgement on Sir Keir’s first six months in office is damning, however.
Some 10% say the government has been successful while 60% say unsuccessful.
Older voters have turned away from Labour. Just 14% of over 65s would now vote Labour, down from 22% around the time of the election.
However, there are signs the Tory party remains a toxic brand. Reform UK are the least unpopular party, with a net favourability rating of -32, Labour a touch worse on -34 and the Tories down on -45.
YouGov interviewed 2,279 voters in Great Britain on Sunday 12 January and Monday 13 January.
A woman in her 40s has been arrested on suspicion of murder after the body of a man was found in Greater Manchester.
The man, in his 50s, was found dead at an address in Hope Hey Lane, Little Hulton, on Sunday morning after reports of concern for his welfare.
Following a post-mortem examination, Greater Manchester Police (GMP) said it had launched a murder investigation as his injuries were consistent with an assault.
Officers subsequently arrested the woman and she remains in police custody for questioning.
Detective Chief Inspector Neil Higginson, from the force’s Major Incident Team, said: “Sadly, following the discovery of a body at a property in Little Hulton, we have now launched a murder investigation, and we have a team of detectives working around the clock to understand the circumstances.
“We do not believe there to be a threat to the wider public, but you will likely see an increased presence of police in your area whilst we conduct further enquiries.
“If you have any information which may assist our investigation, or any dashcam, CCTV, or doorbell footage from the area in the last 24 hours, please get in touch with us.”
He added: “No matter how small the information may seem, it could be crucial to our investigation.”