The account of the Post Office’s former chief executive about what she knew during key years of the firm’s scandal is not believed by the former CEO of Royal Mail, the inquiry into the injustice has heard.
Paula Vennells has been giving evidence as part of a three-day appearance at the inquiry into the impact of faulty Horizon accounting software, which led to the prosecution of more than 700 sub-postmasters.
In addition to the wrongful convictions for theft and false accounting, many more sub-postmaster victims generated large debts, lost homes, livelihoods and reputations and suffered ill health. Some died by suicide.
Widely not believed
The inquiry heard that Dame Moya Greene, the former Royal Mail CEO whom Ms Vennells worked alongside for many years, texted Ms Vennells in January of this year to express her disbelief at the wrongdoing denials.
Ms Vennells has long maintained – and reiterated on Wednesday – that she was unaware of the extent of flaws with Fujitsu’s Horizon software.
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Sub-postmasters listening to the inquiry in the Fenny Compton village hall in Warwickshire, where dozens of sub-postmasters met for the first time in 2009 as they began their fight for justice, also said they did not believe Ms Vennells.
“She is blatantly, utterly lying, and it’s got to stop,” former sub-postmaster Sally Stringer told Sky News.
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Dame Moya texted Ms Vennells after the airing of the ITV drama Mr Bates Vs The Post Office, which reinvigorated interest in the scandal, saying: “When it was clear the system was at fault, the Post Office should have raised a red flag. Stopped all proceedings. Given people back their money, and then tried to compensate them from the ruin this caused in their lives.”
When Ms Vennells replied that she agreed, Ms Greene said: “I don’t know what to say. I think you knew”.
“I want to believe you. I asked you twice. I suggested you get an independent review reporting to you. I was afraid you were being lied to. You said the system had already been reviewed multiple times. How could you not have known?” her text said.
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The question of how it was that she couldn’t have known was taken up the the inquiry’s lead barrister Jason Beer KC.
Ms Vennells core argument emerged early in questioning: she said she wasn’t informed of bugs because of the way information flowed within the organisation. She accepted that as CEO she was in charge of how information was communicated.
“I was too trusting,” she said.
Emotional testimony
Ms Vennells broke down in tears numerous times during her evidence, the first of which was when Mr Beer read out details of sub-postmasters who were not convicted, as juries accepted there were flaws with Horizon.
The inquiry had just been presented with evidence of Ms Vennells telling MPs in 2012, “Every case taken to prosecution has found in favour of the post office. There hasn’t been a case investigated where the horizon system has been found to be at fault”.
This belief, Ms Vennells said, was “a representation of the information that I was given” rather than proof of an unwavering belief that nothing had gone wrong.
‘Wait and see’ accusation
Criticism came from Mr Beer over the fulsomemess of Ms Vennells cumulative 798-page witness statement.
He asked if she was adopting a “wait and see” approach: “Let’s see what comes out in evidence. See what I’ve got to admit and then I’ll admit that?”
“Given you provided a 775-page witness statement that took seven months to write, could you not have reflected on what you should have done fully and differently within the witness statement?” he added.
Image: Post Office Horizon IT scandal inquiry lead counsel Jason Beer KC.
Ms Vennells’ statement said that with the benefit of hindsight, there were “many things” she should have “done differently”, but she would wait for the inquiry to conclude to expand on that detail.
But she denied adopting a “wait and see” approach.
Rather, “It was simply a matter of time,” she said. “The inquiry asked me, I think, over 600 questions to 200 or 300 with subquestions in each. I went through probably hundreds of thousands of documents.”
Evidence to Parliament in 2015
A major question going into the inquiry was how Ms Vennells was able to tell Parliament in 2015 there was “no evidence” of “miscarriages of justice”.
On Wednesday morning, Ms Vennells said that was what she had been told “multiple times” by Fujitsu – that nothing had been found in Horizon.
Comic relief
Back in the village hall in Fenny Compton there were moments of laughter when Mr Beer asked Ms Vennells if she was “the unluckiest CEO in the United Kingdom?”
His question was asked “In the light of the information that you tell us in your witness statement you weren’t given… the documents that you tell us in your witness statement that you didn’t see. And in the light of the assurances that you tell us about in your witness statement that you were given by Post Office staff”.
‘Exculpatory’ remembering
Another line of questioning from Mr Beer was that Ms Vennells had a better memory of events and records that made her and the Post Office look good and a worse recollection of things that made her and her organisation look bad.
“Why is it that in your witness statement, when you refer to a recollection of a conversation that’s unminuted, undocumented, not referred to in any email there are always things that exculpate you that reduce your blameworthiness?” he asked.
That wasn’t her approach, Ms Vennells said.
Signing off a £300,000 legal bill to go after a £25,000 loss?
Sub-postmasters and those following the scandal likely will be listening out to see if Ms Vennells approved the legal bill to prosecute Lee Castleton, who was featured as a victim in the ITV drama.
Earlier this month former managing director Alan Cook told the inquiry Ms Vennells approved legal costs of £300,000 to prosecute Mr Castleton for a supposed £25,000 shortfall when she was a network director at the Post Office.
At a community food table in Staffordshire, produce is being handed out for free.
“I need to come here otherwise we’d be living on bread,” Rebecca Flynn told Sky News.
The 51-year-old said: “I’m earning pretty decent money, but it’s not enough.”
Image: Rebecca Flynn
It gives you an insight into just how deeply the cost of living crisis is biting – because Rebecca is working full-time as an office manager for a day service for people with learning difficulties.
On top of that, she has a second job going door-to-door on evenings and weekends, selling cosmetics and homeware.
“There’s nothing more I can do. Unless I win the lottery or get another job. It should be noticed that people are in this state,” she says.
“Local councils, local governments, they need to see what’s going on, come to ground level. It’s 2025. It shouldn’t be like this.”
But it’s not just Rebecca working all hours and needing food handouts to survive.
Alex Chapman is the co-founder of the Norton Canes Community Food Table, and says a third of the people who use it are working full-time.
“It’s mad that you’re working a good job and you think you’d be able to afford everything and go on holiday and everything like that, but in reality they’re struggling to put food on the table,” he says.
“We’re seeing a massive increase in the people that are using the food table. We see them in their work outfits. Professionals, nurses – you don’t expect them to be struggling because they’re working full-time. People who aren’t working – you expect them to be struggling. But it’s across the board.”
Image: Cannock Chase
The food table is in Cannock Chase.
Sky News analysis of local authorities gives an insight into why people are feeling dissatisfied their salaries are no longer delivering the comfortable lifestyles they thought hard work and a good job would deliver.
Over the past few years, Cannock Chase has gone from being a middle-class part of Britain to one of the lowest-earning areas in the UK.
In 2021, UK average annual salaries were just short of £26,000 – Cannock Chase was almost identical, according to Sky News analysis of Annual Survey of Hours and Earnings data from the Office for National Statistics (ONS).
Since then, the UK average wage has increased by 21.6% – or more than £5,000 a year – keeping pace with high inflation.
But in Cannock Chase, salaries have only risen by 8.4% – meaning on average people are now £300 worse off per month than the average worker across the UK.
SEE HOW YOUR AREA HAS COPED WITH THE COST OF LIVING CRISIS
It won’t have escaped your attention that prices have gone up, by a lot – by a fifth since 2021, the highest sustained rate since the 1990s – with some of the biggest rises among essentials like energy and food.
But, across the whole country, wages have actually done a pretty good job at keeping up with inflation. The problem is that the wage increase is an average, made up of highs and lows, while the price rises affect us more uniformly.
That means if you haven’t had a pay-rise, you will quite quickly find that you can’t afford as many of the things you used to.
People in places like Brentwood in Essex, the Cotswolds in rural Gloucestershire, and Melton in Leicestershire, have seen their wages increase at twice the rate of prices in the last few years, on average.
But on the other end of the scale are places like Cannock Chase, where inflation has been more than double the rate of wage increases.
It used to be a place where average earnings pretty much exactly reflected the UK midpoint. Now, people in Cannock are about £300 worse-off every month than the average person.
See how your area compares with our look-up.
Louise Schwartz, who has two children, describes herself as middle-class. After 20 years in the classroom she now has three jobs, working 50 hours a week as a teaching coach, at a software firm and giving private music lessons.
Her husband is an estate agent. They have a mortgage and three cars and together earn around £80,000 a year.
She says the family loves travelling together but can’t afford to go on holiday this year: “It makes me feel sad for my kids, more than anything, that we can’t give them a week away.
“We have food on the table, we’ve got heating, we’ve got cars to drive. But there are definitely some luxuries that we’ve cut back on recently.
“We don’t do expensive supermarkets. We don’t do expensive brands. We do whatever’s on offer for that particular week. My eldest son has started driving, which has then had an impact on my daughter’s horse-riding lessons.”
Image: Louise Schwartz
Louise adds that the family have a hot tub in the garden that they bought years ago, but because of the cost of electricity, they don’t use it.
I ask her: “What does it say that a teacher and an estate agent both working full time can’t afford to go on holiday this year?”
She replies: “I think a lot of people might not be surprised by that because I think people are probably in a similar position but maybe we just don’t talk about it.”
Full-time workers tell us again and again they thought their lifestyles would be more comfortable – that the work ethic would be delivering more than it is.
Image: Heidi Boot
It seems the dissatisfaction is not only what one person described as “robbing Peter to pay Paul”, but also the lack of what people refer to as “pleasure money”.
Heidi Boot is what you might call the backbone of the middle classes – running a small business full-time called HB Aesthetics, a salon that does eyebrows, eyelashes and nails.
“I feel like everybody is stretching their appointments. People are working so hard for their money and they’ve got nothing to show for it. They’ve paid all their bills and now they’ve got nothing left to spend on themselves,” she says.
“It shouldn’t be that way. But because I see it all the time I feel like it’s just the normal now.”
The long-term lease to the O2, London’s best-known live entertainment venue, has been sold to Britain’s biggest pensions insurance specialist.
Sky News understands a deal was signed last week for Rothesay, the title sponsor of England’s home Test cricket matches, to acquire the landmark’s 999-year lease for about £90m.
The agreement, which is likely to be announced within days, comes more than two months after Sky News reported that Rothesay was the frontrunner to clinch a deal.
Rothesay has become one of Britain’s most successful specialist insurers, having been established in 2007.
It now protects the pensions of more than one million people in Britain and makes more than £300m in pension payouts every month.
The auction of the O2 lease kicked off several months ago, when Cambridge University’s wealthiest college, Trinity, instructed advisers to launch a sale process.
Trinity College, which ranks among Britain’s biggest landowners, acquired the site in 2009 for a reported £24m.
The O2, which shrugged off its ‘white elephant’ status in the aftermath of its disastrous debut as the Millennium Dome in 2000, has since become one of the world’s leading entertainment venues.
Operated by Anschutz Entertainment Group (AEG), it has played host to a wide array of music, theatrical, and sporting events over nearly a quarter of a century.
Trinity College, which was founded by Henry VIII in 1546, bought the O2 lease from Lend Lease and Quintain, the property companies that had taken control of the Millennium Dome site in 2002 for nothing.
In a joint statement issued in response to an enquiry from Sky News, Rothesay and Trinity College Cambridge said they were “pleased to confirm that Rothesay will be the long-term owner of The O2 arena, following a competitive auction process for the lease of this London landmark”.
A spokesperson for Rothesay said separately: “Prestigious and high-quality property assets like the O2 form an important part of Rothesay’s investment strategy, providing the predictable and dependable returns which create real security for the one million-plus pensions we protect.”
Sir Martin Sorrell, the advertising mogul, has received a number of merger approaches for S4 Capital, the London-listed marketing services group he founded seven years ago.
Sky News can reveal that Sir Martin has been contacted in recent weeks by potential suitors including One Equity Partners, a US-based private equity firm which focuses on acquiring companies in the healthcare, industrials, and technology sectors.
This weekend, analysts suggested that One Equity would seek to combine S4 Capital with MSQ, a creative and technology agency group it bought in 2023.
Further details of the possible tie-up were unclear on Saturday, including whether a formal proposal had been made or whether S4 Capital might remain listed on the London Stock Exchange if a deal were to be completed.
S4 Capital is also understood to have attracted recent interest from other parties, the identities of which could not be immediately established.
In March 2024, the Wall Street Journal reported that Sir Martin had rebuffed several offers from Stagwell, an advertising group led by Mark Penn, a former adviser to President Bill Clinton.
New Mountain Capital, another American private equity firm, was also said at the time to have held talks about buying parts or all of S4 Capital.
News of One Equity’s approach puts the venture founded by one of Britain’s most prominent business figures firmly in play after a torrid period in which it has been buffeted by macroeconomic headwinds and a number of accounting issues.
Sir Martin founded S4 Capital in 2018, months after his unexpected and acrimonious departure from WPP, the group he transformed from a manufacturer of wire baskets into the world’s largest provider of marketing services.
The businessman, who has voting control at S4 Capital, used his deep network of institutional relationships to raise money for an acquisition spree at S4, which included technology-focused agencies such as MediaMonks and MightyHive.
S4’s clients now include Alphabet, Amazon, General Motors, Meta, T-Mobile, and Walmart.
Sir Martin’s decision to target acquisitions in the digital content and programmatic media arenas reflected the priorities of what he described as a marketing services group for a new era.
At WPP, he was the architect of a now-widely replicated strategy to assemble hundreds of agency brands under one holding company.
By the time he stepped down, WPP was the owner of creative agency networks such as JWT and Ogilvy, while its media-buying muscle was channelled through the global subsidiary GroupM.
The latest approaches for S4 Capital come during a period of profound change in the global marketing services industry, as artificial intelligence dismantles practices and creative processes that had evolved over decades.
Sir Martin has spurned few opportunities to criticise his successor at WPP, Mark Read, as well as the wider advertising industry, in the seven years since he established S4 Capital.
Last month, WPP announced that Mr Read would be replaced by Cindy Rose, a senior Microsoft executive who has sat on the company’s board as a non-executive director since 2019.
“Cindy has supported the digital transformation of large enterprises around the world – including embracing AI to create new customer experiences, business models and revenue streams,” the WPP chairman, Philip Jansen, said.
“Her expertise in this landscape will be hugely valuable to WPP as the industry navigates fundamental changes and macroeconomic uncertainty.”
WPP has also forfeited its status as the world’s largest marketing services empire to Publicis, and will be shunted even further behind the sector’s biggest players once Omnicom Group’s $13.25bn (£9.85bn) takeover of Interpublic Group is completed.
At the time of Sir Martin’s exit from WPP in April 2018, the company had a market capitalisation of more than £16bn.
On Friday, its market value at its closing share price of 367.5p was just £4.23bn.
Last month, the advertising industry news outlet Campaign reported that WPP had held tentative discussions with the consulting firm Accenture about a potential combination or partnership, underscoring the pressure on legacy marketing services groups.
This weekend, it remained unclear how likely it was that Sir Martin would consummate a deal to combine S4 Capital with another industry player such as One Equity-owned MSQ.
Shares in S4 Capital closed on Friday at 21.2p, giving the company a market capitalisation of £140m.
The stock has fallen by nearly 60% during the last 12 months, and is more than 90% lower than its peak in 2022.
At one point, Sir Martin’s stake in S4 Capital was valued at close to £500m.
A spokeswoman for S4 declined to comment, while a spokesman for One Equity Partners said by email: “OEP is not commenting on this matter.”