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Destitute Tom Brown lost £500,000 in the Post Office IT scandal – and now a minister promises better governance

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By Tony Collins

Today Tom Brown is destitute. He lost his home, his businesses, his reputation and £500,000, because the publicly-owned Post Office made him pay for non-existent shortfalls shown on its Horizon system.

Yesterday, in a Commons debate on the Post Office Horizon IT scandal, Brown’s campaigning MP Kevan Jones set out Brown’s plight as an example of the misery caused by the Horizon IT scandal.

But the new business minister Paul Scully said nothing about compensating Brown or hundreds of other victims of the Horizon system’s phantom shortfalls.

Instead Scully offered the possibility of an inquiry – with no assurance it would be independent of his department BEIS  – and also offered Jones some reassuring words.

He said he will more closely monitor the Post Office and a representative of the Department for Business, Energy and Industrial Strategy will continue to challenge the Post Office on its corporate governance and strategy. He said the Post Office has a new CEO and two new non-executive directors.

But MPs criticisms of the Post Office yesterday raised questions about the institution’s attitudes and behaviours that are not confined to the board.

It appears that Post Office auditors were comfortable accusing Brown of being a criminal when the Post Office given him an award for valour after he fended off a knifeman wearing a Halloween mask.

Tory MP Jerome Mayhew, a former barrister, told the minister of the aggression of Post Office auditors who interviewed his constituent Siobhan Sayer, a sub-postmistress who had trouble with Horizon balances.

When she asked for help, three Post Office auditors arrived. They suspended her, accused her of theft, searched her house, asked her where she had hidden the money and “interrogated her to such an extent that it stopped only when she physically collapsed”.

The Post Office prosecuted her for theft and for false accounting. She did 200 hours of community service, was shamed in her community, ostracised by her friends, and her mental and emotional health was affected. “That is the consequence of the actions and inactions of the Post Office and its servant, Fujitsu,” said Mayhew.

Many other former sub-postmasters had similar experiences with Post Office auditors and managers – which raises questions about whether board-level changes will alter attitudes and behaviour within the institution’s middle and senior management.

MPs yesterday said that the Post Office was denying Horizon was at fault and was continuing to blame sub-postmasters until the point of the mediation settlement in December 2019.

Until then, the Post Office was on record as having described some of the former sub-postmasters who took part in a group litigation against the Post Office as criminals and liars.

Is it likely any of these views will have changed within the Post Office simply because of a settlement at mediation?

Comment

Paul Scully has a particularly difficult job as the new business minister in charge of the Post Office. He is caught between the former sub-postmasters who want accountability and fair compensation and his civil servants who are more comfortable with an offering of platitudes such as closer monitoring, better governance and lessons learned.

The two sides are poles apart. Scully is in the middle. Yesterday he read parts of his civil service brief and described the Post Office shortcomings as in the “past” but it was clear he sympathised with the former sub-postmasters.

In his new job, he doesn’t need the support of former sub-postmasters but he does need the unequivocal support of his civil servants. He is trying to get on with both sides.

But platitudes, a non-independent inquiry, a new Post Office CEO and two new non-executive director on the Post Office will make little difference. The problem nobody can solve is an institutional arrogance built on a culture of secrecy, denial and a deep resentment of criticism and critics.

How will the minister and new Post Office CEO be able tackle institutional problems as profound as those referred to by MPs yesterday?

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These are some comments of MPs in yesterday’s debate:

BBC Panorama – Scandal at the Post Office, presented by journalist Nick Wallis on Monday 23 March.

Yesterday’s Commons debate – Parliamentary TV

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