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Post Office auditor and big four accounting firm EY is being investigated by the industry’s regulator.

Accounting and audit watchdog, the Financial Reporting Council (FRC), said the investigation related to EY’s 2015 to 2018 audits of Post Office accounts and the faulty accounting software, Horizon IT.

The regulator will be examining the role of EY in meeting the auditing standards, the FRC said.

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The Horizon computer programme, made by Fujitsu, wrongly generated financial shortfalls. This led many sub-postmasters to take on significant debt to repay the imagined losses, causing some to lose homes, become bankrupt, suffer ill health, and experience relationship breakdown.

Evidence from Horizon was used to prosecute hundreds of innocent sub-postmasters for theft and false accounting.

It is understood that the years from 2015 and 2018 were selected, as looking at a longer period of time would slow down the investigation, which would not be in the public interest.

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Information available to the FRC has to pass a threshold for an investigation to be launched, as the body does not undertake such examinations with the hope of making a discovery.

By 2015, the scandal had been reported on in the media, and the Post Office ceased bringing prosecutions using Horizon data.

Towards the end of 2015, 555 sub-postmasters instigated legal proceedings against the Post Office that would lead to the public admission of Horizon flaws. The last prosecution with Horizon data is believed to have been in 2014.

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EY ceased to be the Post Office auditor in 2018, the year before the state-owned company publicly acknowledged and apologised for Horizon defects. It had been the auditor of Royal Mail since 1986, when Royal Mail and the Post Office were a single entity, and since the split-off of the businesses in 2013.

What next?

The FRC announcing this investigation neither precludes nor indicates further inquiries into EY audits across other years, Sky News understands.

While it is not possible to know how long the investigation will take, 50% of FRC cases are concluded within two years and 80% finish within three years.

The regulator can hit a firm with financial penalties or apply mitigation policies to a company to improve standards.

The Post Office Horizon IT Inquiry ran for two-and-a-half years to establish a clear account of the introduction and failure of Horizon, but its scope did not include the role or knowledge of external auditors.

Its developments had been monitored, the FRC said.

Responding to the announcement, EY said: “We take our public interest responsibilities extremely seriously and will be fully cooperating with the FRC during their investigation.”

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Government accused of ‘cover-up’ over collapse of China spy trial

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Government accused of 'cover-up' over collapse of China spy trial

Kemi Badenoch has accused the government of a “cover-up” over the collapse of a China spy trial.

The Tory leader said there were a “lot of questions to answer” as to why the trial involving two men did not proceed.

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It is expected that ministers will have to answer questions about the case today, as parliament returns from recess.

In particular, there are questions around the role played by Jonathan Powell, the prime minister’s national security adviser, in the trial not going ahead.

Ministers have repeatedly said Mr Powell played no role in the decisions that led to the collapse of the trial – but Ms Badenoch said she was “worried that there is a cover up taking place”.

Speaking to broadcasters in Grantham today, Ms Badenoch said: “We will be making sure that we ask questions in parliament about exactly who knew what, where and when, but Jonathan Powell certainly has questions to answer.”

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She refuted suggestions from ministers that Mr Powell had had no involvement in the collapse of the trial, saying: “We are seeing information that contradicts that.

“That is why it is very important that the government come clean about who knew what, where, when, and why this has happened.”

Former parliamentary researcher Christopher Cash, 30, of Whitechapel, east London, and teacher Christopher Berry, 33, of Witney, Oxfordshire, were charged with passing politically sensitive information to a Chinese intelligence agent between December 2021 and February 2023. They have both denied the allegations.

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Over the past week, Sir Keir Starmer, his ministers and Mr Powell have faced accusations they were involved in the trial being dropped.

Last week Stephen Parkinson, the director of public prosecutions and the head of the Crown Prosecution Service, took the unusual step of sending MPs a letter to claim that the government repeatedly refused to provide evidence that China represented a national security threat at the time of the allegations.

Mr Parkinson said the CPS had tried “over many months” to get the evidence it needed to carry out the prosecution, but it had not been forthcoming from the government.

Downing Street also said today it was “entirely false” to suggest the government influenced the collapse of the case because of concerns Beijing could withdraw investment in the UK.

Asked about reports in the Sunday Times which suggested a decision was taken high up in government to abandon the case, the prime minister’s official spokesman told reporters: “It is entirely false. The CPS (Crown Prosecution Service) decision to drop the case was entirely a matter for the CPS.

“There was no role for any member of this government, no minister, or special adviser, to take any decision in relation to this case. That is entirely for the CPS.”

The government had argued that China needed to have been branded an “enemy” during the period it was accused of spying for the prosecution to go ahead – effectively blaming the previous Conservative government.

The Conservatives claim the government’s rationale is an excuse because it had said many times Beijing was a national security threat while it was in government.

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The prime minister has said he wanted to be “absolutely clear no ministers were involved” in any decisions relating to the case, but notably sidestepped answering whether Mr Powell was involved.

Bridget Phillipson, the education secretary, yesterday gave the government’s most definitive answer yet about whether Mr Powell was part of the reason the case was dropped weeks before they were set to go on trial.

Asked on Sunday Morning with Trevor Phillips if she could assure him that the national security adviser played no role in the decision, Ms Phillipson said: “Yes, I can give that assurance.

“We’re very disappointed that the CPS were not able to take forward the prosecution.”

The Liberal Democrats have called on the government to hold an inquiry into the collapse of the case.

Calum Miller, the party’s foreign affairs spokesman, said the case had “exposed appalling gaps in our government’s ability and willingness to challenge China’s espionage efforts”.

“We cannot let the government sweep this case under the rug in its efforts to cosy up to President Xi. An inquiry – preceded by rigorous scrutiny through parliament – would provide the answers the public deserves.”

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Tommy Robinson refused to give phone pin to police as he drove his Bentley to Benidorm, court hears

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Tommy Robinson refused to give phone pin to police as he drove his Bentley to Benidorm, court hears

Tommy Robinson refused to hand over his phone pin when police stopped his Bentley on the way to Benidorm, a court has heard.

He allegedly told officers “Not a chance, bruv” and said he was a journalist when they pulled him aside at the Channel Tunnel at Folkestone in July 2024.

Robinson, real name Stephen Yaxley-Lennon, is accused of “frustrating” counter-terrorism powers by refusing to give access to the phone.

He denies the charge.

The right-wing political activist was flanked by security guards as he arrived at Westminster Magistrates Court for the opening of the trial on Monday.

The 42-year-old faces three months in prison and/or a £2,500 fine if found guilty.

Robinson had £13,000 and 1,900 euros on him when he was stopped and told police he was going to Benidorm in Spain for a few days, said prosecutor Jo Morris.

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He allegedly refused to give the pin as he claimed the phone had sensitive “journalist material” on it.

He’s said to have told police: “It’s my work, I’m a journalist,” claiming it contained information about “vulnerable girls”.

The court heard Robinson was stopped in his silver Bentley SUV because he gave “short, vague replies” about what he was doing and “made no eye contact”.

PC Mitchell Thorogood told the court it was also “unusual” he bought tickets on the day rather than in advance and was in an expensive car not registered in his name.

Pic: PA
Image:
Pic: PA

When police took Robinson into an interview room and demanded his phone, he allegedly told them: “Not a chance bruv… you look like a c*** so you ain’t having it.”

Officers said they recognised Robinson when they stopped him and his lawyer, Alisdair Williamson KC, suggested the stop may have been “discriminatory” against his political beliefs.

Police can stop anyone at a UK port and hold them for six hours if they suspect they may be involved in planning or committing acts of terrorism.

They are legally obliged to answer questions and must give access to their electronic devices or face a criminal charge.

In a video on X before the hearing, Robinson said Elon Musk had “picked up the legal bill” for “this absolute state persecution”.

The case comes a month after Robinson led a huge rally in central London under the banner ‘Unite the Kingdom’.

The trial continues.

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Man arrested over 1994 murder of 13-year-old Lindsay Rimer

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Man arrested over 1994 murder of 13-year-old Lindsay Rimer

A man has been arrested on suspicion of the 1994 murder of 13-year-old Lindsay Rimer.

Police said the man was arrested at an undisclosed prison where he is serving a sentence for other offences.

The man, who is being interviewed today and tomorrow, is expected to be bailed and returned to prison while enquires continue.

Officers are also interviewing a number of potential witnesses in the Hebden Bridge and wider Halifax area.

Lindsay left her home to buy a box of corn flakes late during the evening of 7 November, 1994, but didn’t return home.

Her body was then found in a canal close to her home six months later.

Following today’s arrest, senior investigating officer, detective chief inspector James Entwistle, said: “We remain very firmly committed to doing everything we can to get justice for Lindsay, and to give her family the answers they still so desperately need after all these years.

Lindsay Rimer's body was found in a canal close to her home six months later. Pic: West Yorkshire Police
Image:
Lindsay Rimer’s body was found in a canal close to her home six months later. Pic: West Yorkshire Police

“The arrest we have made today comes as a result of our continued focus on progressing the investigation.

“We are keeping Lindsay’s family updated and, while we appreciate the understandable public interest that today’s arrest will bring, we do not anticipate any immediate developments at this stage.

“Although it is now more than thirty years since Lindsay was murdered, we remain convinced there is someone out there who has vital information that could finally help to ease her family’s pain, and we urge them do the right thing and tell us what they know.”

Anyone with further information has been urged to contact police by calling 101 quoting Operation Posemill, or sending a text or voicemail to 07707147314.

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