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A damning report into the faulty Post Office IT system that proceeded Horizon has been unearthed after nearly 30 years – and it could help overturn criminal convictions.

The document, known about by the Post Office in 1998, is described as “hugely significant” and a “fundamental piece of evidence” and was found in a garage by a retired computer expert.

Capture was a piece of accounting software, likely to have caused errors, used in more than 2,000 branches between 1992 and 1999.

It came before the infamous faulty Horizon software scandal, which saw hundreds of sub postmasters wrongfully convicted between 1999 and 2015.

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What is the Capture scandal?

The ‘lost long’ Capture documents were discovered in a garage by a retired computer expert who came forward after a Sky News report into the case of Patricia Owen, a convicted sub postmistress who used the software.

Adrian Montagu was supposed to be a key witness for Pat’s defence at her trial in 1998 but her family always believed he had never turned up, despite his computer “just sitting there” in court.

Mr Montagu, however, insists he did attend.

He describes being in the courtroom and adds that “at some point into the trial” he was stood down by the barrister for Mrs Owen with “no reason” given.

Adrian Montagu was supposed to be a key witness for Pat's defence
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Adrian Montagu was supposed to be a key witness for Pat’s defence

Sky News has seen contemporaneous notes proving Mr Montagu did go to Canterbury Crown Court for the first one or two days of the trial in June 1998.

“I went to the court and I set up a computer with a big old screen,” he says.

“I remember being there, I remember the judge introducing everybody very properly…but the barrister in question for the defence, he went along and said ‘I am not going to need you so you don’t need to be here any more’.

“I wasn’t asked back.”

The 'lost long' Capture documents were discovered in a garage
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The ‘lost long’ Capture documents were discovered in a garage

Sky News has reached out to the barrister in Pat Owen’s case who said he had no recollection of it.

‘An accident waiting to happen’

The report, commissioned by the defence and written by Adrian Montagu and his colleague, describes Capture as “an accident waiting to happen”, and “totally discredited”.

It concludes that “reasonable doubt exists as to whether any criminal offence has taken place”.

It also states that the software “is quite capable of producing absurd gibberish”, and describes “several insidious faults…which would not be necessarily apparent to the user”.

All of which produced “arithmetical or accounting errors”.

Sky News has also seen documents suggesting the jury in Pat Owen’s case may never have seen the report.

What is clear is that they did not hear evidence from its author including his planned “demonstration” of how Capture could produce accounting errors.

But flaws were found within it
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But flaws were found within it

Pat Owen was convicted of stealing from her Post Office branch in 1998 and given a suspended prison sentence.

Her family describe how it “wrecked” her life, contributing towards her ill health, and she died in 2003 before the wider Post Office scandal came to light.

Her daughter Juliet said her mother fought with “everything she could”.

“To know that in the background there was Adrian with this (report) that would have changed everything, not just for mum but for every Capture victim after that, I think is shocking and really upsetting – really, really upsetting.”

Pat died before the contents of the report came to light
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Pat died before the contents of the report came to light

The report itself was served on the Post Office lawyers – who continued to prosecute sub postmasters in the months and years after Pat Owen’s trial.

‘My blood is boiling’

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‘They knew software was faulty’

Steve Marston, who used the Capture software in his branch, was one of them – he was convicted of stealing nearly £80,000 in September 1998.

His prosecution took place four months after the Capture report had been served on the Post Office.

Steve says he was persuaded to plead guilty with the “threat of jail” hanging over him and received a suspended sentence.

He describes the discovery of the report as “incredible” and says his “blood is boiling” and he feels “betrayed”.

“So they knew that the software was faulty?,” he says. “It’s in black and white isn’t it? And yet they still pressed on doing what they did.

“They used Capture evidence … as the evidence to get me to plead guilty to avoid jail.

“They kept telling us it was safe…They knew the software should never have been used in 1998, didn’t they?”

Steve says his family’s lives were destroyed and the knowledge of this report could have “changed everything”.

He says he would have fought the case “instead of giving in”.

“How dare they. And no doubt I certainly wasn’t the last one…And yet they knew they were convicting people with faulty software, faulty computers.”

Steve's prosecution took place four months after the Capture report had been served on the Post Office
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Steve’s prosecution took place four months after the Capture report had been served on the Post Office

The report is now with the Criminal Cases Review Commission, the body investigating potential miscarriages of justice, which is currently looking into 28 Capture cases.

A fundamental piece of evidence

Neil Hudgell, the lawyer representing more than 100 victims, describes the report as “hugely significant”, “seismic” and a “fundamental piece of evidence”.

“I’m as confident as I can be that this is a good day for families like Steve Marston and Mrs Owen’s family,” he says.

“I think (the documents) could be very pivotal in delivering the exoneration that they very badly deserve.”

He also added that “there’s absolutely no doubt” that the “entire contents” of the “damning” report “was under the noses of the Post Office at a very early stage”.

Pat Owen was convicted of stealing from her Post Office branch in 1998
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Pat Owen

He describes it as a “massive missed opportunity” and “early red flag” for the Post Office which went on to prosecute hundreds who used Horizon in the years that followed.

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“It is a continuation of a theme that obviously has rolled out over the subsequent 20 plus years in relation to Horizon,” he says.

“…if this had seen the light of day in its proper sense, and poor Mrs Owen had not been convicted, the domino effect of what followed may not have happened.”

What the Post Office said

Sky News approached the former Chief Executive of the Post Office during the Capture years, John Roberts, who said: “I can’t recall any discussion at my level, or that of the board, about Capture at any time while I was CEO.”

A statement from the Post Office said: “We have been very concerned about the reported problems relating to the use of the Capture software and are sincerely sorry for past failings that have caused suffering to postmasters.

“We are determined that past wrongs are put right and are continuing to support the government’s work and fully co-operating with the Criminal Cases Review Commission as it investigates several cases which may be Capture related.”

A Department for Business and Trade spokesperson said: “Postmasters including Patricia Owen endured immeasurable suffering, and we continue to listen to those who have been sharing their stories on the Capture system.

“Government officials met with postmasters recently as part of our commitment to develop an effective and fair redress process for those affected by Capture, and we will continue to keep them updated.”

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Bournemouth: The seaside town ‘changed’ by immigration – where non-British-born population rose nearly 50%

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Bournemouth: The seaside town 'changed' by immigration - where non-British-born population rose nearly 50%

The British seaside town of Bournemouth has a complex relationship with migration. It needs migrants to work in the tourist industry, which is vital for the economy.

Some residents say it’s always been a multicultural place, but others question if too many people coming here undermines the cultural identity of the town.

On Bournemouth seafront, we find that immigration is something that some white British people want to talk about – but not openly, and not on camera.

One woman, who knows the town well, said: “Bournemouth has changed because of the migration of people who have come here. The whole atmosphere of the place has changed.

One woman, who would only speak anonymously, said the 'atmosphere of the town has changed'
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One woman, who would only speak anonymously, said the ‘atmosphere of the town has changed’

“It’s strange to hear foreign languages spoken so frequently in our country. To not understand anything that’s being said around you is disconcerting,” she added.

I asked her if it made her uncomfortable, and if so, why? Is it the scale of migration which is bothering her?

“Visually, that seems to be the case,” she says. “We see what we see. I don’t see many white British people.”

I’m trying to get to the heart of what’s troubling her.

“It’s hard to define. I remember how it was. I remember the community. I’m worrying that our society as Brits is being undermined by the people who are coming in,” she says.

For decades, Britain has wrestled with the thorny issue of migration – who should be allowed into the country and from where.

The change in the demographic of the town is clear. Between the 2011 and 2021 censuses, the non-British-born population in Bournemouth’s local authority went up by 47%, and UK net migration has continued to rise significantly since then.

Read more:
Councils threaten revolt over asylum hotels

Bournemouth is a popular tourist destination
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Bournemouth is a popular tourist destination

The town attracts tourists because of its long sandy beach
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The town attracts tourists because of its long sandy beach

Post-Brexit changes

Nine years ago – just before Brexit – we visited Bournemouth’s Cumberland Hotel. Back then, the staff were mostly EU citizens – many from Eastern Europe.

Returning to the hotel, we speak to the manager, Sean Nell.

He said: “A lot of our workforce were EU nationals and after Brexit, a lot of them left – they found other work other than hospitality.

“A lot of our workforce we’re seeing now that we can recruit from is probably South Asia.”

Sean Nell, hotel manager in Bournemouth
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Sean Nell, hotel manager in Bournemouth

One of the staff is barman Shardul Tomas, who came to the UK from India in 2022 on a student visa. Whilst studying for his master’s degree, he began working at the hotel.

“It’s good to come here and experience new culture and do what we wish to do in our fields….after Brexit, the Europeans were less, so we were able to get good jobs,” he said.

Shardul Tomas moved to the UK three years ago
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Shardul Tomas moved to the UK three years ago

‘We are replaced’

Nine years ago, Margaret Kubik was the assistant restaurant manager at the Cumberland.

We tracked her down and discovered she’s now working as a self-employed driving instructor.

She said: “When we met nine years ago, we as the Polish people were very much accused of taking the jobs from English people. Now we are replaced by the South Asian people.”

Margaret Kubik came to the UK in 2004 from Poland she now works as a driving instructor
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Margaret Kubik came to the UK in 2004 from Poland she now works as a driving instructor

‘It’s not England any more’

For some Bournemouth residents, hotels housing asylum seekers have almost become the focal point for wider concerns about migration – as is happening in other towns across the UK.

Visiting a protest outside an asylum hotel, we found people are less camera shy than the woman on the seafront – seemingly more comfortable talking about migration among a crowd of like-minded people.

The Britannia Hotel in Bournemouth is one site which has housed asylum seekers
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The Britannia Hotel in Bournemouth is one site which has housed asylum seekers

In reference to asylum seekers, one protester, shaking her head, told us: “We don’t know who these people are. Who are they? It makes you feel like it’s not England any more.”

For a couple of hours, two angry groups face off over their differing views on immigration. But not everyone shares concerns about the impact of migration on the town.

Kevin Maidment was born in Bournemouth. I asked if he feels the fabric of the town has changed.

Kevin Maidment
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Kevin Maidment

Protesters ‘need somebody to hate’

He said: “No, because it’s always been a place where foreign language students visit.

“I think this lot down the road, they need somebody to hate… now it’s refugees, 10 years ago it was the Poles and the Eastern Europeans,” he said.

Watching the two groups with opposing views trying to drown each other out is a man called Colin. He lives in a flat between two asylum hotels, a few minutes walk apart.

Colin lives in a flat between two asylum hotels
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Colin lives in a flat between two asylum hotels

“Personally, the immigrants aren’t a problem on the street or anything like that at all,” Colin says, referring to those seeking asylum.

“But people are fed up with the cost. The cost is a big problem because it’s so high.”

But with more councils vowing to launch legal challenges over the government’s use of asylum hotels, the immigration protest movement shows no sign of fizzling out.

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Two Labour-run councils ‘considering all options’ to challenge migrant hotel use

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Two Labour-run councils 'considering all options' to challenge migrant hotel use

Two Labour-run councils have said they are considering taking legal action to stop the use of hotels to house migrants in their areas after Epping council won a temporary injunction on Tuesday.

The leaders of Wirral and Tamworth councils both say they are considering their legal options in the wake of the Epping case, citing similar concerns about the impact of the hotels on their local communities.

Epping Forest District Council won an interim High Court injunction to stop migrants from being accommodated at The Bell Hotel, after arguing its owners did not have planning permission to use it to house migrants.

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In a statement, Paula Basnett, the Labour leader of Wirral council, said: “Like many other local authorities, we have concerns about the Home Office’s practice of placing asylum seekers in hotels without consultation or regard to local planning requirements.

“We are actively considering all options available to us to ensure that any use of hotels or other premises in Wirral is lawful and does not ride roughshod over planning regulations or the wishes of our communities.

Police officers ahead of a demonstration outside The Bell Hotel. Pic: PA
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Police officers ahead of a demonstration outside The Bell Hotel. Pic: PA

“Wirral has always been proud of its record in supporting families and those fleeing conflict, but it is unacceptable for the government to impose unsuitable, short-term arrangements that disrupt communities and bypass local decision-making.

“If necessary, we will not hesitate to challenge such decisions in order to protect both residents and those seeking refuge.”

Carol Dean, the Labour leader of Tamworth Borough Council, said she understands the “strong feelings” of residents about the use of a local hotel to house asylum seekers, and that the council is “listening to their concerns and taking them seriously”.

She pointed out that under the national Labour government, the use of hotels has halved from 402 to 210, with the aim of stopping the use of any hotels by the end of this parliament.

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Migrant hotels a ‘failure of policy’

But she continued: “Following the temporary High Court injunction granted to Epping Forest District Council, we are closely monitoring developments and reviewing our legal position in light of this significant ruling.”

Cllr Dean added that they had previously explored their legal options to challenge the use of the hotel but decided against them, as temporary injunctions were not being upheld.

However, the Epping ruling “represents a potentially important legal precedent”, which is why they are “carefully assessing” its significance for Tamworth.

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Minister ‘gets asylum frustration’

“We fully recognise the UK government has a statutory duty to accommodate people seeking asylum. However, we have consistently maintained that the prolonged use of hotel accommodation may not represent the best approach – either for our local community or for the asylum seekers themselves,” she said.

“We will continue to work constructively with government departments and all relevant agencies while making sure the voice of our community is heard at the highest levels of government.”

Last night, Conservative-run Broxbourne Council also announced it was exploring its legal options, and the Reform UK leader of Kent County said she was writing to fellow leaders in Kent to explore whether they could potentially take legal action as well.

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Asylum hotels: ‘People have had enough’

Use of Epping hotel ‘sidestepped public scrutiny’

The prime minister and the home secretary are under huge pressure to clear the asylum backlog and stop using hotels across the country to house those waiting for their applications to be processed.

Protests have sprung up at migrant hotels across the country. But The Bell Hotel in Epping became a focal point in recent weeks after an asylum seeker housed there was charged with sexually assaulting a 14-year-old girl.

Epping Forest District Council sought an interim High Court injunction to stop migrants from being accommodated at the hotel, owned by Somani Hotels Limited, on the basis that using it for that purpose contravened local planning regulations.

The Bell Hotel in Epping. Pic: PA
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The Bell Hotel in Epping. Pic: PA

The interim injunction demanded that the hotel be cleared of its occupants within 14 days, but in his ruling on Tuesday, Mr Justice Eyre granted the temporary block, while extending the time limit by which it must stop housing asylum seekers to 12 September.

Somani Hotels said it intended to appeal the decision, its barrister, Piers Riley-Smith, arguing it would set a precedent that could affect “the wider strategy” of housing asylum seekers in hotels.

A government attempt to delay the application was rejected by the High Court judge earlier on Tuesday, Home Office barristers arguing the case had a “substantial impact” on the Home Secretary, Yvette Cooper, in performing her legal duties to asylum seekers.

But Mr Justice Eyre dismissed the Home Office’s bid, stating that the department’s involvement was “not necessary”.

Read more:
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The judge said the hotel’s owners “sidestepped the public scrutiny and explanation which would otherwise have taken place if an application for planning permission or for a certificate of lawful use had been made”.

He added: “It was also deliberately taking the chance that its understanding of the legal position was incorrect. This is a factor of particular weight in the circumstances of this case.”

Reacting to Tuesday’s judgment, border security minister Dame Angela Eagle said the government will “continue working with local authorities and communities to address legitimate concerns”.

She added: “Our work continues to close all asylum hotels by the end of this parliament.”

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Did Robert Jenrick really ‘boast’ about opening hotels for asylum seekers?

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Did Robert Jenrick really 'boast' about opening hotels for asylum seekers?

A row has broken out between the Tories and Reform about previous comments on migrant hotels, so who said what and when?

At the centre of the argument is an interview Robert Jenrick did with Sky News back in November 2022, one week after he was appointed immigration minister in Rishi Sunak’s government.

His appearance came amid a crisis at an asylum seeker processing centre in Kent, which had become severely overcrowded – with migrants sleeping on the floor and families being housed in marquees.

Politics latest: Councils plan legal challenges to migrant hotels

The home secretary at the time, Suella Braverman, had also been accused of allowing the situation to develop by failing to procure sufficient alternative accommodation – such as hotels – for migrants to be taken to.

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Full clip: Jenrick on hotels in 2022

Asked about this by Sky News in 2022, Robert Jenrick said: “More hotels have been coming online almost every month throughout the whole of this year.

“So, Suella Braverman and her predecessor, Priti Patel, were procuring more hotels. What I have done in my short tenure is ramp that up and procure even more because November, historically, has been one of the highest months of the year for migrants illegally crossing the Channel.”

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Council wins asylum hotel case

Fast-forward almost three years, and this clip has been seized on by Reform UK as evidence that Mr Jenrick “boasted” about how many migrant hotels he had opened.

That’s a potentially damaging accusation, given the now shadow justice secretary recently joined protests outside a migrant hotel in Essex.

Mr Jenrick responded by accusing Reform of posting a “selectively clipped” video that didn’t include the context about the Kent processing centre.

To an extent, he has a point.

Nigel Farage's party has posted clips of Mr Jenrick speaking from 2022
Pic: PA
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Nigel Farage’s party has posted clips of Mr Jenrick speaking from 2022
Pic: PA

At the time, the government was fighting accusations that they were risking an expensive court action from migrants claiming they were being detained unlawfully.

The minister’s response was to point out that they were sourcing alternative options to make sure this didn’t happen and to prevent order breaking down in Kent.

Mr Jenrick has also pointed to other comments he made at the time saying, “it is essential we exit the hotels altogether” and describing the expensive hotel bill as “disgraceful”.

But that’s not to say Robert Jenrick hasn’t undergone quite a pronounced shift in both language and substance when it comes to migration.

Mr Jenrick has accused Zia Yusuf of "pushing false and petty crap"
Pic: PA
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Mr Jenrick has accused Zia Yusuf of “pushing false and petty crap”
Pic: PA

For instance, in the same Sky News interview in 2022, he said: “I would never demonise people coming to this country in pursuit of a better life. And I understand and appreciate our obligation to refugees.”

At the time, this wasn’t a surprising view from a minister commonly considered to be in the centre of the Tory party.

But Mr Jenrick’s time as immigration minister saw him move further to the right.

As he has since said himself: “I could see the breakdown of the British state was doing immense damage. It angered me, and it motivated me to do absolutely everything to fix the problem.”

The following months saw Mr Jenrick significantly harden his position, to the point that he resigned over the government’s approach.

But the bigger contradiction Reform is trying to get at by picking this fight is around the Tory record.

It is a fact that the use of hotels to house asylum seekers peaked at just over 55,000 while the Conservatives were in power.

Similarly, it’s a fact that legal migration reached record levels on the Tories watch.

Mr Jenrick can fairly claim that – in the final year of his front-bench career – he did go further than most to try to change this.

But he can’t change the data from the time.

Reform knows that – just as it also knows the Tory record on migration is one of the big pull factors bringing their voters over to them.

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