Government is using Post Office as ‘shield’ over Horizon compensation schemes, outgoing CEO Nick Read tells inquiry
The Post Office’s outgoing CEO today agreed the government is using the company as a “shield” over compensation schemes, while giving evidence at the inquiry.
Nick Read, who resigned last month, was giving evidence at the Post Office Horizon IT Inquiry for the second day, with a focus on delays to victims’ financial redress.
Edward Henry KC, representing wronged sub-postmasters caught up in the Horizon scandal, asked Mr Read if the government “is using the Post Office as a shield or a fire curtain”.
He replied: “That could be a description, yes.”
Mr Henry continued: “The fact you’re [the Post Office] administering two out of the three schemes gives the government a degree of protection… one step removed gives it room for plausible deniability?”
Mr Read responded: “That’s true.”
Hundreds of sub postmasters were wrongfully convicted due to faulty Horizon computer software used by the Post Office between 1999 and 2015.
The outgoing Post Office boss denied the company has been instructed “to minimise or supress compensation claims whilst avoiding public scrutiny”.
Mr Read admitted, however, that the compensation process has been “overly bureaucratic” and expressed “deep regret” that the Post Office had not lived up to delivering “speedy and fair redress”.
Nick Read, chief executive of Post Office Ltd, giving evidence to the inquiry. Pic: PA
However, he insisted the “approach” and way of “engaging” with victims has changed in the last few months, with “lessons learned” since the start of the year.
“I think we are genuinely open and moving towards a better system,” Mr Read told the inquiry. “There are proper appeals processes, proper independent panels now working.”
He added there is a “commitment… to get this right,” and said he believes “things will start to flow” despite “mistakes hav[ing] certainly been made”.
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Mr Read also addressed the “terrible” fact that hundreds of sub-postmasters have died before receiving compensation.
A total of 251 people have died without getting full financial redress, according to data cited at the inquiry.
Nick Read insisted “a lot of time” has been spent “trying to work out how do we improve and speed up the process”, adding it was a “constant point of conversation” with the government.
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Alan Bates ‘not heard word’ from govt
Mr Read said it was “astonishing” the Post Office was involved in the administration of compensation schemes and said the “corporate view” was that the Post Office should not have anything to do with them.
When asked why that view was not communicated to the inquiry in meetings, Mr Read responded: “It’s a good question. I’m unsure why we didn’t make that very explicit…clearly we should have done.”
He said the lack of communication on this was a “failure”.
Mr Read also today told the inquiry how Post Office employees “implicated” in the Horizon scandal may “still be operating at the heart” of the business.
The inquiry continues.
The parent company of PizzaExpress is hiring bankers to help it refinance a £335m bond ahead of its maturity, amid tough trading conditions for casual dining operators.
Sky News has learnt that Wheel Topco is close to appointing PJT Partners, the investment bank, to advise it on talks with its debtholders.
PizzaExpress trades from 359 sites in the UK and Ireland, and is one of Britain’s most ubiquitous restaurant chains.
According to its latest accounts, its bond matures in July 2026, with negotiations expected to get underway with bondholders in the coming weeks.
News of PJT’s imminent appointment comes a year after PizzaExpress explored a takeover bid for The Restaurant Group, which counts Wagamama as its main asset.
It decided against making a formal offer, citing “market conditions”.
In 2020, a group of bondholders took control of PizzaExpress after a financial restructuring which saw them injecting £40m into the business.
They parachuted in Allan Leighton, one of Britain’s most prominent businessman, as chairman, and named former Wagamama chief David Campbell as chief executive.
Mr Campbell has since left the company.
Last year, the company made a loss after tax of £7.5m, and said in filings at Companies House that it had “continued to experience strong macroeconomic headwinds” in the UK and Ireland.
A number of its rivals have also ben buffeted by difficult trading, with TGI Fridays recently being sold through a pre-pack administration to Breal Capital and Calveton, the owners of upmarket London restaurants such as Le Pont de la Tour and Coq d’Argent.
PizzaExpress declined to comment.
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