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.”
Image: Officers held his arrest picture next to Kaddour-Cherif’s head to confirm his identity
In the footage, the Algerian was shown shouting to people standing nearby in the street.
An officer then held up a photo of Kaddour-Cherif on a phone, comparing the image to the man arrested.
When officers asked him whether he knew why he was being arrested, Kaddour-Cherif replied: “I don’t know.”
Kaddour-Cherif, who was wearing a grey hoodie, black beanie and black backpack, said the mix-up at the prison was the fault of the authorities who released him.
“It’s not my f***ing fault”, Kaddour-Cherif shouted.
Image: Kaddour-Cherif shouted at bystanders as officers arrested him
Image: Kaddour-Cherif claimed to be someone else when he was arrested
The Prison Service informed the Metropolitan Police about the error six days later – and a huge manhunt for him was launched.
It is not yet clear why it was nearly a week between the release at HMP Wandsworth and the police being informed that an offender was at large.
“At 11.23am on Friday, 7 November, a call was received from a member of the public reporting a sighting of a man they believed to be Brahim Kaddour-Cherif in the vicinity of Capital City College on Blackstock Road in Islington,” a Met Police spokesperson said.
“Officers responded immediately and at 11.30am detained a man matching Cherif’s description. His identity was confirmed and he was arrested for being unlawfully at large.
“He was also arrested on suspicion of assaulting an emergency worker in relation to a previous unrelated incident. He has been taken into police custody. The Prison Service has been informed.”
Image: Kaddour-Cherif shouted it was ‘not my f***ing fault’ that he was mistakenly released
Kaddour-Cherif is a registered sex offender who was convicted of indecent exposure in November last year, following an incident in March.
At the time, he was given a community order and placed on the sex offenders register for five years.
He was then subsequently jailed for possessing a knife in June.
Image: He was wrongly freed from Wandsworth prison. Pic: Met Police
Kaddour-Cherif came to the UK legally and is not an asylum seeker, but it is understood he overstayed his visit visa and deportation proceedings had been started.
He was accidentally freed five days after the wrongful release of convicted sex offender Hadush Kebatu. Both Kaddour-Cherif and Kebatu were arrested in Finsbury Park.
A third man, fraudster William Smith, 35, was mistakenly released from HMP Wandsworth on 3 November, but turned himself in on Thursday.
After Kaddour-Cherif’s arrest, Justice Secretary David Lammy admitted there was a “mountain to climb” to tackle the crisis in the prison system.
“We inherited a prison system in crisis and I’m appalled at the rate of releases in error this is causing,” he said.
“I’m determined to grip this problem, but there is a mountain to climb which cannot be done overnight.
“That is why I have ordered new tough release checks, commissioned an independent investigation into systemic failures, and begun overhauling archaic paper-based systems still used in some prisons.”
A young woman who claimed to be Madeleine McCann has been convicted of harassing the missing toddler’s family.
However, Julia Wandelt, 24, was cleared of stalking the couple.
A Polish national born three years after Madeleine, Wandelt said she suspected she had been abducted and brought up by a couple who were not her real parents.
She was having mental health issues at the time and had been abused by an elderly relative.
The relative looked like an artist’s drawing of a man who was once a suspect in the Madeleine case, which she stumbled across during internet research on missing children.
She went to Los Angeles and told a US TV chat show audience: “I believe I am Madeleine McCann.”
Madeleine was nearly four when she vanished from the family’s rented holiday apartment in Praia da Luz, Portugal, in May 2007.
She had been left sleeping with her younger twin siblings, Sean and Amelia, while her parents dined nearby with friends, making intermittent checks on the children.
Madeleine is the world’s most famous missing child, the subject of three international police investigations that have failed to find any trace of her.
Wandelt claimed to have a blemish in the iris of her right eye, like Madeleine’s, and to resemble aged-progressed images of her.
Image: Madeleine McCann went missing during a family holiday to Portugal in 2007. Pic: PA
Over three years, she attracted half a million followers on her Instagram account, iammadeleinemccan, and posted her claims on TikTok.
Police told her she was not Madeleine and ordered her not to approach her family, but she ignored the warning.
The McCanns and their children gave evidence in the trial at Leicester Crown Court, describing the upset Wandelt had caused them.
Her co-defendant, Karen Spragg, 61, from Cardiff, was found not guilty of stalking and harassment.
This breaking news story is being updated and more details will be published shortly.
Public safety is “at risk” because more inmates are being sent to prisons with minimal security, a serving governor has warned – as details emerge of another manhunt for a foreign national offender.
Mark Drury – speaking in his role as representative for open prison governors at the Prison Governors’ Association – told Sky News open prisons that have had no absconders for “many years” are now “suddenly” experiencing a rise in cases.
It comes after a man who was serving a 21-year sentence for kidnap and grievous bodily harm absconded from an open prison in Sussex last month.
Sky News has learned that Ola Abimbola is a foreign national offender who still hasn’t returned to HMP Ford – and Sussex Police says it is working with partners to find him.
WARNING: Some readers may find the content in this article distressing
Image: Ola Abimbola absconded from an open prison. Pic: Sussex Police
For Natalie Queiroz, who was stabbed 24 times by her ex-partner while she was eight months’ pregnant with their child, the warnings could not feel starker.
Natalie sustained injuries to all her major organs and her arms, while the knife only missed her unborn baby by 2mm.
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“Nobody expected either of us to survive,” she told Sky News.
“Any day now, my ex who created this untold horror is about to go to an open prison,” Natalie said.
Open prisons – otherwise known as Category D jails – have minimal security and are traditionally used to house prisoners right at the end of their sentence, to prepare them for integrating back into society.
With overcrowding in higher security jails, policy changes mean more prisoners are eligible for a transfer to open conditions earlier on in their sentence.
Image: Natalie Queiroz was stabbed 24 times by her ex-partner
“It doesn’t feel right, it’s terrifying, and it also doesn’t feel like justice,” Natalie said, wiping away tears at points.
Previously, rules stated a transfer to open prison could only take place within three years of their eligibility for parole – but no earlier than five years before their automatic release date.
The five-year component was dropped in March last year under the previous government, but the parole eligibility element was extended to five years in April 2025.
Raja, who is due for release in 2034, has parole eligibility 12 years into his sentence, which is 2028.
Under the rule change, this eligibility for open prison is set for this year – but under the new rules it could have been 2023, which is within five years of his parole date.
Another change, introduced in the spring, means certain offenders can be assumed suitable for open prisons three years early – extended from two years.
Image: Natalie says her ex-partner Babur Raja caused ‘untold horror’
Natalie has been campaigning to prevent violent offenders and domestic abuse perpetrators from being eligible to transfer to an open prison early.
She’s had meetings with ministers and raised both her case and others.
“They actually said – he is dangerous,” she told Sky News.
“I said to [the minister]: ‘How can you make a risk assessment for someone like that?’
“And they went: ‘If we’re honest, we can’t’.”
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The government told Sky News that Raja’s crimes were “horrific” and that their “thoughts remain with the victim”.
They also insist that the “small number of offenders eligible for moves to open prison face a strict, thorough risk assessment” – while anyone breaking the rules “can be immediately returned”.
Image: Mark Drury, a representative of the Prison Governors’ Association
But Mr Drury describes risk assessments as an “algorithm tick box” because of “the pressure on offender management units”.
These warnings come at an already embarrassing time for the Prison Service after migrant sex offender Hadush Kebatu was mistakenly freed last month.
In response to this report, the Ministry of Justice says it “inherited a justice system in crisis, with prisons days away from collapse” – forcing “firm action to get the situation back under control”.
The government has promised to add 14,000 new prison places by 2031 and introduce sentencing reforms.