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The Post Office was a “mess” run by executives and government appointees who “dragged their feet” in efforts to compensate and exonerate sub-postmasters, the former chairman has told the public inquiry.

Henry Staunton, who was sacked after 14 months as chair by then business secretary Kemi Badenoch in January, also accused the organisation of having a “huge cultural problem” with a lack of ethnic and gender diversity – and of overseeing “vindictive” investigations into two sub-postmasters who served on the company board.

He also denied allegations that he made racist and misogynistic comments about Post Office colleagues, saying he had been “deeply stung” by an internal investigation he says was used as a pretext by Ms Badenoch to remove him.

A former chairman of WH Smith and director of ITV, Mr Staunton was appointed in December 2022 after being approached by headhunters who told him he would be “giving something back” if he took the job.

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He said he found a culture of chaos in senior management that immediately required more than the two days a week he had been told was required.

“The place was a mess that required more of my time,” he said. His view was that executives did not fully accept the findings of the High Court judgment that established the role of the Horizon computer system in hundreds of flawed prosecutions.

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“My initial impression was that the Post Office and government were dragging their feet in terms of making payments for remediation – in the first place – and in the second place I thought that there was no appetite at all for exoneration,” he told the inquiry.

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New Post Office scandal: ‘It’s been horrific’

Mr Staunton said that initially a “ridiculous” amount of his time was taken up with requests for a pay rise from chief executive Nick Read, who he previously told a Parliamentary inquiry was unhappy and threatening to resign.

In November 2022, before he was formally in post, he was asked to sign a letter to the secretary of state recommending an increase from the maximum of £788,500 to £1.125m, a “massive” increase that Mr Staunton said the minister was right to reject.

He said the environment among senior staff was characterised by “risk aversion and paralysis” and “a culture of fear and worry”, in part because executives feared being called to give evidence to the public inquiry.

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Nick Read. Pic: House of Commons/PA
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Nick Read. Pic: House of Commons/PA

Referring to a letter he received from an anonymous whistleblower, that alleged a “disgusting culture” at the Post Office, Mr Staunton agreed the organisation “had a huge problem with culture”.

“Ethnicity was very poorly represented. We did have a problem with ethnicity. We did have a problem with gender.”

He also recognised claims that Mr Read had referred to, of those with a “public school education”, and that there was a perception of “jobs for the boys”.

Mr Staunton was also highly critical of an internal investigation launched into two sub-postmasters who had been appointed to the board as non-executive directors, alleging it was held open for months as a means of intimidating them.

Inquiry hears recording of chair’s sacking

The inquiry also heard details of Mr Staunton’s dismissal and was played a recording of the telephone call in which Ms Badenoch told him he was being removed because of “complaints that are so serious the government needs to intervene”.

Mr Staunton told the inquiry that her call came several hours after a journalist, understood to be Sky News’ Mark Kleinman, rang him to tell him he was likely to be fired.

He was not told on that call what the complaints were, but the previous month had learned his conduct was being examined as part of a Post Office investigation based initially on an 80-page complaint against Mr Read by the then chief people officer. In the complaint, Mr Staunton was mentioned only once and not by name.

Kemi Badenoch speaking at a Conservative Party leadership campaign event at IET London. Picture date: Monday September 2, 2024. PA Photo. See PA story POLITICS Tories Badenoch. Photo credit should read: James Manning/PA Wire
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Then Business Secretary Kemi Badenoch sacked Mr Staunton last year. Pic: James Manning/PA Wire

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The allegation against him was that he made inappropriate comments about gender and race at a meeting about candidates to chair the Post Office remuneration committee. In his witness statement to the inquiry, he said: “I deny those allegations completely and feel deeply stung by them.”

He told the inquiry that three former Post Office colleagues – one Jewish, one Muslim and one black – had provided letters of support in his defence to questions from the Institute of Chartered Accountants.

“All three directors have said they thought there was not an ounce of racism in me and indeed I was a champion of greater diversity of ethnicity and gender on the board,” he said.

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Sir Alan Bates threatens legal action

In his witness statement, he said details of the investigation and its findings against him, which have never been published, were leaked to the media by a government source who claimed they explained why he objected to being sacked by a minister who was “black and female.”

“I was deeply aggrieved at being made a fall guy for failings that I myself had been struggling to get the Post Office to address,” he said.

“This was a report into Nick Read, not about me, but because I had taken the side of the sub-postmasters it was weaponised against me.”

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BBC ‘determined to fight’ any Trump legal action, chairman tells staff

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BBC 'determined to fight' any Trump legal action, chairman tells staff

BBC chair Samir Shah has said there is “no basis for a defamation case and we are determined to fight this” – after Donald Trump said he would sue the corporation for between $1bn and $5bn.

It comes after the US president confirmed on Saturday he would be taking legal action against the broadcaster over the editing of his speech on Panorama – despite an apology from the BBC.

Samir Shah said the BBC's position 'has not changed'. Pic: Reuters
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Samir Shah said the BBC’s position ‘has not changed’. Pic: Reuters

In an email to staff, Mr Shah said: “There is a lot being written, said and speculated upon about the possibility of legal action, including potential costs or settlements.

“In all this we are, of course, acutely aware of the privilege of our funding and the need to protect our licence fee payers, the British public.

“I want to be very clear with you – our position has not changed. There is no basis for a defamation case and we are determined to fight this.”

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On Saturday, President Trump told reporters legal action would come in the following days.

“We’ll sue them. We’ll sue them for anywhere between a billion (£792m) and five billion dollars (£3.79bn), probably sometime next week,” he said.

“We have to do it, they’ve even admitted that they cheated. Not that they couldn’t have not done that. They cheated. They changed the words coming out of my mouth.”

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The BBC on Thursday said the edit of Mr Trump’s speech on 6 January 2021 had given the “mistaken impression that President Trump had made a direct call for violent action”.

The broadcaster apologised and said the splicing of the speech was an “error of judgment” but refused to pay financial compensation after the US leader’s lawyers threatened to sue for one billion dollars in damages unless a retraction and apology were published.

Deborah Turness. Pic: Reuters
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Deborah Turness. Pic: Reuters

Tim Davie. Pic: PA
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Tim Davie. Pic: PA

The Panorama scandal prompted the resignations of two of the BBC’s most senior executives – director-general Tim Davie and news chief Deborah Turness.

The broadcaster has said it will not air the Panorama episode Trump: A Second Chance? again, and published a retraction on the show’s webpage on Thursday.

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Joseph James O’Connor ordered to pay back over £4m in Bitcoin after hacking celebrity X accounts

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Joseph James O'Connor ordered to pay back over £4m in Bitcoin after hacking celebrity X accounts

A British man who hacked the X accounts of celebrities in a bid to con people out of Bitcoin, has been ordered to repay £4.1m-worth of the cryptocurrency, prosecutors say.

Joseph James O’Connor, 26, was jailed in the United States for five years in 2023 after he pleaded guilty to charges including computer intrusion, wire fraud and extortion.

He was arrested in Spain in 2021 and extradited after the country’s high court ruled the US was best placed to prosecute because the evidence and victims were there.

The Crown Prosecution Service (CPS) said on Monday it had obtained a civil recovery order to seize 42 Bitcoin and other crypto assets linked to the scam, in which O’Connor used hijacked accounts to solicit digital currency and threaten celebrities.

The July 2020 hack compromised accounts of high-profile figures including former US presidents Barack Obama and Joe Biden, and Amazon founder Jeff Bezos.

O’Connor and his co-conspirators stole more than $794,000 (£629,000) of cryptocurrency after using the hacked accounts to ask people to send $1,000 in Bitcoin to receive double back.

Prosecutor Adrian Foster said the civil recovery order showed that “even when someone is not convicted in the UK, we are still able to ensure they do not benefit from their criminality”.

The order, which valued O’Connor’s assets at around £4.1m, was made last week, following a freeze placed on the hacker’s property, which prosecutors secured during extradition proceedings.

Barack Obama was one of the famous people to have their Twitter account hacked
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Barack Obama was one of the famous people to have their Twitter account hacked

Elon Musk was among those targeted by scammers in a Twitter hack
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Elon Musk was among those targeted by scammers in a Twitter hack

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A court-appointed trustee will liquidate his assets, the CPS said.

The attack also compromised the X (then Twitter) accounts of other high-profile figures including Tesla chief executive Elon Musk, investor Warren Buffett, and media personality and businesswoman Kim Kardashian.

The hack prompted the social media platform to temporarily freeze some accounts.

X said 130 accounts were targeted, with 45 used to send tweets.

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Inside the town where 6 out of 7 children grow up in poverty – and live in fear of homelessness

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Inside the town where 6 out of 7 children grow up in poverty - and live in fear of homelessness

The cobbled streets of Newport in Middlesbrough survive from the Victorian era.

The staggering levels of child poverty here also feel like they belong in a different time.

Six out of every seven children in Newport are classified as living in poverty.

Six out of every seven children in Newport are classified as living in poverty
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Six out of every seven children in Newport are classified as living in poverty

The measure is defined by the Child Poverty Action Group as a household with an income less than 60% of the national average.

More than half of children across the whole of the constituency of Middlesbrough and Thornaby East are growing up in poverty.

As a long-awaited new strategy on child poverty is expected from the government, much of the focus on tackling the problem has been placed on lifting the two-child cap on benefits for families.

Researchers say there is direct link between areas with the highest rates of child poverty and those with the highest proportion of children affected by that two-child cap.

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The two-child benefit cap means Gemma Grafton and Lee Stevenson receive no additional universal credit for three-month-old Ivie
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The two-child benefit cap means Gemma Grafton and Lee Stevenson receive no additional universal credit for three-month-old Ivie

Mother-of-three Gemma Grafton said: “Maybe if families do have more than two children, give them that little bit of extra help because it would make a difference.”

Three months ago, she and partner Lee welcomed baby Ivie into the world. With two daughters already, the cap means they receive no additional universal credit.

“You don’t seem to have enough money some months to cover the basics,” said Lee.

“Having to tell the kids to take it easy, that’s not nice, when they’re just wanting to help themselves to get what they want and we’ve got to say ‘Try and calm down on what you’re eating’ because we haven’t got the money to go and get shopping in,” added Gemma.

Katrina Morley, of Dormanstown Primary Academy, says lack of sleep affects concentration
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Katrina Morley, of Dormanstown Primary Academy, says lack of sleep affects concentration

Tracey Godfrey-Harrison says parents 'are crying that they're failing'
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Tracey Godfrey-Harrison says parents ‘are crying that they’re failing’

The couple had to resort to paying half of the rent one month, something they say is stressful and puts their home at risk.

Those who work in the area of child poverty say they are engaged in a battle with child exploitation gangs who will happily step in and offer children a lucrative life of crime.

“Parents are crying that they’re failing because they can’t provide for their children,” said Tracey Godfrey-Harrison, project manager at the Middlesbrough Food Bank.

“In today’s society, it’s disgraceful that anyone should have to cry because they don’t have enough.”

In the shadow of a former steelworks, Dormanstown Primary Academy serves pupils in a community hit hard by the economic collapse that followed.

The school works with charities and businesses to increase opportunities for pupils now and in the future.

Katrina Morley, the academy’s chief executive, said: “A child who hasn’t been able to sleep properly can’t concentrate. They’re tired. We know that the brain doesn’t work in the same way. A child who is hungry can’t access the whole of life.

“When you face hardship, it affects not just your physiology but your emotional sense, your brain development, your sense of worth. They don’t get today back and their tomorrow is our tomorrow.”

Dormanstown Primary Academy serves pupils in a community hit hard by the closure of a steel plant
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Dormanstown Primary Academy serves pupils in a community hit hard by the closure of a steel plant

Barney's Baby Bank founder Debbie Smith says local people 'are struggling with food'
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Barney’s Baby Bank founder Debbie Smith says local people ‘are struggling with food’


The school’s year six pupils see the value of things like the on-site farm shop for families in need.

They are open about their own worries, too.

Bonnie, 10, said: “I think that’s very important because it ensures all the people in our community have options if they’re struggling.

“It can be life-changing for families in poverty or who have a disadvantage in life because they don’t have enough money and they’re really struggling to get their necessities.”

Mark, also 10, said: “I worry about if we have nowhere to live and if we haven’t got enough money to pay for our home. But at least we have our family.”

They also see the homelessness in the area as the impact of poverty. “I think it actually happens more often than most people think,” said Leo, “because near the town, there’s people on the streets and they have nowhere to go.”

The school is one of many calling for the lifting of the two-child cap.

The need for life’s essentials has prompted more than 50 families to register for help at Barney’s Baby Bank in the last 11 months. Nappies, wipes, clothing, shoes, toys, are a lifeline for those who call in.

Founder Debbie Smith said local people “are struggling with food. They’re obviously struggling to clothe their babies as well. It’s low wages, high unemployment, job insecurity and that two-child benefit cap”.

“Middlesbrough does feel ignored,” she added.

A government spokesperson said: “Every child, no matter their background, deserves the best start in life. That’s why our Child Poverty Taskforce will publish an ambitious strategy to tackle the structural and root causes of child poverty.

“We are investing £500m in children’s development through the rollout of Best Start Family Hubs, extending free school meals and ensuring the poorest don’t go hungry in the holidays through a new £1bn crisis support package.”

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But what is the message to those making the decisions from the North East?

“Come and do my job for a week and see the need and the desperation the people are in,” said Ms Godfrey-Harrison. “There needs to be more done for people in Middlesbrough.”

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