Horizon scandal: More than £1m claimed as Post Office ‘profit’ may have come from sub-postmasters
More than £1m of unexplained transactions were transferred in to Post Office profit at the height of the Horizon scandal, leaked documents have shown.
The papers, seen by Sky News, show a snapshot of transfers from a Post Office “miscellaneous client” suspense account over a four-year period, up to 2014.
A suspense account is where unexplained, or disputed, transactions remain until they are able to be “reconciled”.
Unaccounted-for transactions were transferred out of the Post Office suspense account and into their profit and loss account after three years.
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Ian Henderson, director of Second Sight – the forensic accountants hired years ago by Post Office – said: “The Post Office was not printing money. It was accumulating funds in its suspense account.
“Those funds belong to somebody, either to third-party clients or to sub-postmasters, and part of the work we were doing in 2015 was drilling into that.”
Mr Henderson said they were sacked not long after asking questions about whether the Post Office profited from shortfalls paid for by sub-postmasters.
Mr Henderson told Sky News that the money could potentially have come from sub-postmasters’ pockets
More than 900 sub-postmasters were wrongly prosecuted due to faults with Horizon accounting software.
A letter from Alisdair Cameron, the Post Office’s chief financial officer, to Second Sight in February 2015 states some “postings cannot be traced” to “underlying transactions”.
He added: “We are not always able to drill back from the combined totals to itemise all the underlying transactions.”
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Mr Henderson said the letter shows that “the Post Office was benefiting from this uncertainty due to, frankly, bad record keeping, but taking it to the benefit of their profit and loss account”.
He maintains that it’s impossible to prove for sure that sub-postmasters’ money went into Post Office profit because of a “lack of granularity”.
He says therefore that it is of “sufficient public interest” that a further independent review into the use of suspense accounts should happen.
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Mr Henderson added: “It didn’t come from thin air, where did the money come from? That’s a fundamental question the Post Office has not answered.”
Meanwhile, separately, a secret recording obtained by Sky News indicates that the Post Office was trying to gag the independent forensic accountants.
The recording is of a meeting in January 2014 between Second Sight, a lawyer and a Post Office representative.
It took place over a year before the accountants were sacked.
In the conference call, there are signs the relationship between the Post Office and Second Sight was beginning to weaken.
There is discussion about a contractual confidentiality agreement, a “letter of engagement” between the parties.
In the recording, Ian Henderson says: “Either, you know, we have unfettered discretion and authorisation to just talk to MPs or we haven’t.
“At the moment, the way the document is drafted, we are prevented from doing that. That’s the issue.”
His colleague at Second Sight, Ron Warmington is heard agreeing.
In another part of the recording, there are more concerns raised that the investigators are being blocked from talking to MPs.
Mr Henderson says: “My point is we should not be gagging either the applicant or Second Sight in being able to respond, you know, fully and frankly to MPs who frankly sort of set this whole process in motion.”
The Post Office representative replies, saying they’re not trying to gag anybody.
Mr Henderson describes “a point of principle”: “In exactly the same way that when we were doing spot reviews, we disclosed to MPs, when they asked us a specific question, the information provided to us by Fujitsu and by Post Office.
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“And that’s why it’s so important to establish this principle that there should be no gagging of Second Sight in relation to being able to discuss our investigative work with MPs.”
In the same meeting, his colleague Ron Warmington said that if it later emerges that Second Sight have been “effectively gagged” in its dealing with MPs, “it’s not going to be Second Sight they are particularly annoyed with, it’s going to be Post Office”.
The representative responds directly with: “I think that’s something that the Post Office will have to deal with if – if it arises.”
Adding that “some of the terminology in terms of gagging is probably an exaggeration of what it is that is trying to be done here, and at the moment you haven’t signed anything.”
The Post Office released a statement in response to the findings, saying: “The statutory public inquiry, chaired by a judge with the power to question witnesses under oath, is the best forum to examine the issues raised by this evidence.
“We continue to remain fully focused on supporting the inquiry to get to the truth of what happened and accountability for that.”
People are having to play “pharmacy bingo” – going from shop to shop to find stocks – as medicine shortages are worsening, experts have said.
Health leaders say some patients are even having to “ration” their drugs, with a new poll suggesting shortages are a “daily occurrence” for many of England’s pharmacies.
Treatments for ADHD, diabetes and epilepsy are among those affected this year, according to trade body Community Pharmacy England.
Its survey of more than 6,000 pharmacies and 2,000 staff found shortages are “wreaking havoc” on patients.
Nearly all (97%) of staff said patients were being inconvenienced, while 79% said health was being put at risk.
Some 98% said they were also giving out more “I owe yous” – where they can only fulfil part of the prescription.
Nearly all (99%) pharmacies reported supply problems at least weekly, and 72% said they were having “multiple issues a day”.
Another survey last month, by the Nuffield Trust thinktank, said drug shortages had more than doubled between 2020 and 2023 and that Brexit was likely to “significantly weaken” the UK’s ability to deal with the issues.
Shortages have also been a growing problem in Europe and the US in recent years.
However, the UK leaving EU supply chains is said to have added complications such as custom checks at borders and drug makers facing extra regulation.
Nearly all pharmacies reported problems at least weekly and 72% were having multiple issues a day
The falling value of the pound after Brexit has also made it more expensive for the NHS to buy medicines.
Community Pharmacy England boss Janet Morrison said the supply problems were “beyond critical” and had become an “ongoing battle” for pharmacies.
“Patients with a wide range of clinical and therapeutic needs are being affected on a daily basis and this is going far beyond inconvenience, leading to frustration, anxiety and affecting their health,” she added.
“For some patients, not having access to the medicines they need could lead to very serious consequences, even leaving them needing to visit A&E.”
Ms Morrison said the survey was “yet another stark warning which must not be ignored”.
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William Pett from Healthwatch England called it an “ongoing issue that continues to wreak havoc on patients”.
“Healthwatch England hears about how shortages can lead to rationing and desperate instances of ‘pharmacy bingo’, where patients must travel from pharmacy to pharmacy looking for stock,” he said.
Paul Rees, head of the National Pharmacy Association, urged the government “to sort out the UK’s fragile medicines supply system, so that pharmacies can do their job and patients can get their lifesaving medicines in time”.
The Department of Health and Social Care is yet to comment.
A British girl has had her hearing restored after becoming the first person worldwide to take part in a pioneering new gene therapy trial.
Opal Sandy was born totally deaf due to auditory neuropathy, which disrupts nerve impulses from the inner ear to the brain.
But the 18-month-old’s hearing is now almost normal – and could improve further – after having the one-time treatment.
Opal was treated at Addenbrooke’s Hospital in Cambridge and the head of the trial, Professor Manohar Bance, said results were “better than I hoped or expected” and he hopes medics might be able to cure others with this type of deafness.
“We have results from (Opal) which are very spectacular – so close to normal hearing restoration. So we do hope it could be a potential cure,” he said.
Opal (second left) with her parents and sister Nora, who has the same condition. Pic: PA
Auditory neuropathy can be caused by a fault in the OTOF gene, which makes a protein called otoferlin and enables cells in the ear to communicate with the hearing nerve.
Opal, from Oxfordshire, had an infusion of the working gene into her right ear during surgery in September – the treatment developed by biotech firm Regeneron.
Her parents noticed changes in only four weeks and the improvements were especially noticeable 24 weeks later.
Jo and James Sandy, both 33, said they were “gobsmacked” when she responded to sound tests at home without her cochlear implant, the usual way to treat the condition.
Opal had her operation in September. Pic: Cambridge University NHS Trust
“I thought it was a fluke or like a change in light or something that had caught her eye, but I repeated it a few times,” said Mrs Sandy.
They say she now enjoys the sound of slamming her cutlery on the table and playing with toy drums and wooden blocks.
“We were told she had near normal hearing last time,” she added. “I think they got responses at sort of 25 to 30 decibels.
“I think normal hearing is classed at 20 decibels, so she’s not far off. Before, she had no hearing whatsoever.”
Opal’s surgery was very similar to fitting a cochlear implant, according to Prof Bance.
He said the inner ear (cochlea) was opened and the treatment infused using a catheter over 16 minutes.
“We have to make a release hole in another part of the ear to let the treatment out because it has to go all the way through the ear,” he said.
“And then we just repair and close up, so it’s actually a very similar approach to a cochlear implant, except we don’t put the implant in.”
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Experts say it could mark a ‘new era’ in treating deafness. Pic: PA
He said the gene therapy potentially “marks a new era in the treatment for deafness”.
“It was just the fact that we’ve been hearing about this for so long, and there’s been so much work, decades of work… to finally see something that actually worked in humans… It was quite spectacular and a bit awe-inspiring really,” he said.
The treatment was developed especially for children with OTOF mutations, and a second child who has had the same surgery is also seeing positive results.
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The trial has three parts – with three deaf children, including Opal, getting a low dose in just one ear.
Another three children will get a high dose on one side. Then, if safe, a new set of children will get a dose in both ears at the same time.
Up to 18 people from the UK, US and Spain are being recruited and will be followed up for five years.
Results of the study were presented on Wednesday to the American Society of Gene and Cell Therapy conference in Baltimore.
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