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”.
Image: Alan Cook arrives to give evidence to the Post Office inquiry. Pic: Reuters
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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1:03
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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1:27
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.”
A 15-year-old boy who was operated on twice by a now unlicensed Great Ormond Street surgeon is living with “continuous” pain.
Finias Sandu has been told by an independent review the procedures he underwent on both his legs were “unacceptable” and “inappropriate” for his age.
The teenager from Essex was born with a condition that causes curved bones in his legs.
Aged seven, a reconstructive procedure was carried out on Finias’s left leg, lengthening the limb by 3.5cm.
A few years later, the same operation was carried out on his right leg which involved wearing an invasive and heavy metal frame for months.
He has now been told by independent experts these procedures should not have taken place and concerns have been raised over a lack of imaging being taken prior to the operations.
Image: Yaser Jabbar rescinded his UK medical licence last year. Pic: LinkedIn
His doctor at London’s prestigious Great Ormond Street Hospital was former consultant orthopaedic surgeon Yaser Jabbar. Sky News has spoken to others he treated.
Mr Jabbar also did not arrange for updated scans or for relevant X-rays to be conducted ahead of the procedures.
The surgeries have been found to have caused Finias “harm” and left him in constant pain.
“The pain is there every day, every day I’m continuously in pain,” he told Sky News.
“It’s not something really sharp, although it does get to a certain point where it hurts quite a lot, but it’s always there. It just doesn’t leave, it’s a companion to me, just always there.”
Mr Jabbar rescinded his UK medical licence in January last year after working at Great Ormond Street between 2017 and 2022.
The care of his 700-plus patients is being assessed, with some facing corrective surgery, among them Finias.
“Trusting somebody is hard to do, knowing what they have done to me physically and emotionally, you know, it’s just too much to comprehend for me,” he said.
“It wasn’t something just physically, like my leg pain and everything else. It was emotionally, because I put my trust in that specific doctor. My parents and I don’t really understand the more scientific terms, we just went by what he said.”
Doctors refused to treat Finias because of his surgeries
Finias and his family relocated to their native Romania soon after the reconstructive frame was removed from his right leg in the summer of 2021.
The pain worsened and they sought advice from doctors in Romania, who refused to treat Finias because of the impact of his surgeries.
Dozens of families seeking legal claims
His mother Cornelia Sandu is “furious” and feels her trust in the hospital has been shattered. They are now among dozens of families seeking legal claims.
Cyrus Plaza from Hudgell Solicitors is representing the family. He said: “In cases where it has been identified that harm was caused, we want to see Great Ormond Street Hospital agreeing to pay interim payments of compensation for the children, so that if they need therapy or treatment now, they can access it.”
Finias is accessing therapy and mental health support as he prepares for corrective surgery later in the year.
A spokesperson for Great Ormond Street Hospital told Sky News: “We are deeply sorry to Finias and his family, and all the patients and families who have been impacted.
“We want every patient and family who comes to our hospital to feel safe and cared for. We will always discuss concerns families may have and, where they submit claims, we will work to ensure the legal process can be resolved as quickly as possible.”
Image: Finias with his mother and sister
Service not ‘safe for patients’
Sky News has attempted to contact Mr Jabbar.
An external review into the wider orthopaedic department at the hospital began in September 2022.
It was commissioned after the Royal College of Surgeons warned the hospital’s lower limb reconstruction service was not “safe for patients or adequate to meet demand”.
The investigation is expected to be completed by the end of the year.
Sir Keir Starmer has said closer ties with the EU will be good for the UK’s jobs, bills and borders ahead of a summit where he could announce a deal with the bloc.
The government is set to host EU leaders in London on Monday as part of its efforts to “reset” relations post-Brexit.
A deal granting the UK access to a major EU defence fund could be on the table, according to reports – but disagreements over a youth mobility scheme and fishing rights could prove to be a stumbling block.
The prime minister has appeared to signal a youth mobility deal could be possible, telling The Times that while freedom of movement is a “red line”, youth mobility does not come under this.
His comment comes after Kaja Kallas, the EU’s high representative for foreign affairs, said on Friday work on a defence deal was progressing but “we’re not there yet”.
Sir Keir met European Commission president Ursula von der Leyen later that day while at a summit in Albania.
Image: Ursula von der Leyen and Sir Keir had a brief meeting earlier this week. Pic: PA
Sir Keir said: “First India, then the United States – in the last two weeks alone that’s jobs saved, faster growth and wages rising.
“More money in the pockets of British working people, achieved through striking deals not striking poses.
“Tomorrow, we take another step forward, with yet more benefits for the United Kingdom as the result of a strengthened partnership with the European Union.”
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Conservative leader Kemi Badenoch has said she is “worried” about what the PM might have negotiated.
Ms Badenoch – who has promised to rip up the deal with the EU if it breaches her red lines on Brexit – said: “Labour should have used this review of our EU trade deal to secure new wins for Britain, such as an EU-wide agreement on Brits using e-gates on the continent.
“Instead, it sounds like we’re giving away our fishing quotas, becoming a rule-taker from Brussels once again and getting free movement by the back door. This isn’t a reset, it’s a surrender.”
Roman Lavrynovych appeared at Westminster Magistrates’ Court on Friday and was remanded in custody.
Officers from the Metropolitan Police’s Counter Terrorism Command led the investigation because of the connections to the prime minister.
Emergency services were called to a fire in the early hours of Monday at a house in Kentish Town, north London, where Sir Keir lived with his family before the election.