Nick Read, CEO of the Post Office, revealed to MPs that the organization is yet to fully understand the fate of funds wrongfully obtained from sub-postmasters and sub-postmistresses in the infamous Horizon scandal. The issue, stemming from faults in the Horizon software system, led to several branch managers incorrectly paying to cover fictitious financial deficits.
Despite multiple investigations by external auditors, Read admitted that the exact destination of these funds remains elusive, hindered by low-quality data and other complexities. However, he did not rule out the possibility that these funds might have been incorporated into the substantial remuneration packages of Post Office executives. “It’s possible, absolutely it’s possible,” Read stated.
The Horizon scandal has been under statutory inquiry, with Read providing pertinent information to the investigation. He appeared before the business committee alongside Paul Patterson, director of Fujitsu Services Limited in Europe. Fujitsu was the company responsible for the Horizon system, which was at the center of the controversy.
Patterson acknowledged Fujitsu’s “moral obligation” to contribute to the compensation scheme for victims of the scandal, whose lives were adversely impacted. Conversations are expected between the company and the government regarding the extent of Fujitsu’s financial contributions.
The scandal,which was highlighted in the recent ITV drama “Mr Bates Vs the Post Office,” involves over 700 wrongful criminal convictions of Post Office branch managers for theft and false accounting. This was due to discrepancies caused by bugs in Fujitsu’s Horizon system, leading to severe personal and financial repercussions for the affected individuals, including imprisonments and links to at least four suicides.
Patterson expressed remorse on behalf of Fujitsu, admitting the company’s role in the miscarriage of justice. He confirmed that Fujitsu was involved from the beginning and acknowledged the presence of bugs and errors in the Horizon system which contributed to the prosecution of innocent sub-postmasters.
The UK government has allocated £1 billion for the victims of the Horizon scandal and indicated that it might pursue Fujitsu for the costs if the inquiry finds the company responsible. Patterson, who has been in his role since 2019, expressed regret over the company’s failure to act despite being aware of the system’s glitches.
During the committee hearing, MPs expressed shock at the evidence presented and frustration over the lack of clarity regarding who knew what and when. The controversy over the Post Office’s initial denial of remote access to the Horizon software, which was later admitted in 2017 court proceedings, was also a key topic.
