Post Office 'handed out bonuses for convictions' in Horizon scandal as £75k deal sparks fresh battle with victims
11 January 2024, 00:25
The Post Office is said to have handed out bonuses in return for convictions in the Horizon scandal.
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Investigators were offered cash bonuses for every sub-postmaster convicted, with the scheme being described as “part of the business”, it is understood.
Hundreds of sub-postmasters were wrongly convicted in the Horizon scandal, after the IT software recorded false losses on branch accounts.
Gary Thomas, from the Post Office security team, told the inquiry there were “bonus objectives”, according to the Telegraph.
When asked if it influenced decisions, he said: “I’d probably be lying if I said no because… it was part of the business, the culture of the business of recoveries or even under the terms of a postmaster’s contract with the contracts manager.”
In a 2021 email sent from Mr Thomas to Post Office boss Nick Read, he wrote: “My yearly objectives that were bonus worthy at the time were based on numbers of successful prosecutions and recovery amounts of money to the business.”
Former postmaster Alan Bates, who was the focus of ITV drama Mr Bates vs The Post Office, said the offering of financial incentives for prosecutions was “appalling”.
Read more: Post Office compensation 'should be paid by August', minister says, as 130 more victims come forward
The revelation comes after Rishi Sunak confirmed new legislation will be brought in to "exonerate and compensate" wrongly convicted postmasters during the scandal.
But some postmasters have said they will continue their battle after an initial offer of just £75,000 in compensation for those who were made to pay back cash despite not being convicted of any offence.
Post Office minister Kevin Hollinrake said the £75,000 would offer immediate help to a third of people with smaller claims but acknowledged that for many it would not be enough.
Speaking at the start of Prime Minister's Questions on Wednesday, Mr Sunak said: "We will make sure that the truth comes to light, we right the wrongs of the past and the victims get the justice they deserve."
Mr Bates said the decision was "a leap forward" but warned campaigners to see the "devil in the detail", according to the Mail.
He said those with larger claims were the ones who needed their cases resolved.
"Don't forget they lost their houses, their businesses, their earning capacity for many, many years as well – a number of them cashed in pensions and all sorts," he said.
Justice Secretary Alex Chalk says 'some guilty people will be acquitted' in Post Office scandal
Following Wednesday's announcement, leader of the opposition, Sir Keir Starmer, praised the Prime Minister's plans, labelling the scandal a "huge injustice".
"People lost their lives, their liberty and their livelihood - and they've been waiting far too long for truth, for justice, for compensation," the Labour leader said.
Sir Keir added that he was "glad" that Mr Sunak was putting together a proposal to exonerate and compensate the victims.
Read More: Ex-Post Office boss Paula Vennells was 'shortlisted to be Bishop of London'
Post Office minister Kevin Hollinrake later admitted to the House of Commons that some postmasters who were actually guilty could have their convictions overturned.
"I cannot tell the house that all of those were innocent... we just do not know how many," Mr Hollinrake said.
He went on: "We want to avoid guilty people walking away with hundreds of thousands of pounds of public money.... but we cannot turn this into an administrative exercise.
"As part of their claim they will sign a statement to say they did not commit the crimes."
Postal minister Kevin Hollinrake discusses existing government Fujitsu contracts
When asked whether Fujitsu - the firm behind the faulty Horizon accounting software - should pay towards the Post Office compensation scheme, Justice Secretary Alex Chalk previously told LBC: "Polluters should pay, in simple terms.
"Now, the reason why this has to take its course is because Sir Wyn Williams is the independent judge who's considering this, and indeed, he's been considering it since 2021.
"This is a huge issue that's taken a considerable period of time, he expects to conclude his report later this year. And of course, that is going to want to consider the culpability of all the principal actors, including Fujitsu who are the authors of the Horizon system.
"It is, however, important for that to take its course. So that report having been concluded, other authorities be the police or other investigators might make a decision on where the evidence should take them.
"That will be the moment for accountability to really bite."
The Mr Bates vs The Post Office drama, which has drawn attention to the scandal, gripped the nation last week, bringing a series of key figures who presided over the scandal back into the limelight.
It included the former Post Office CEO, Paula Vennells, who was in charge when the Post Office led a campaign of wrongful prosecutions.
