Second IT system may have caused shortage of sub-postmasters – report

An independent investigation found that a second Post Office IT system could lead to shortages of sub-postmasters before the Horizon scandal, which led to Britain’s biggest miscarriage of justice.

Capture software was introduced in around 13.5% of branches starting in 1993.

Several subpostmasters told the investigation by Kroll, a risk consulting firm, that although they had reported problems with the system to their managers, the postal service had not followed up on them and had not taken them into account in audits and investigations.

Some were subsequently prosecuted, although the independent report made no conclusions about the safety of criminal convictions.

A convicted and now deceased subpostmaster reported the deficiencies to the Capture Help Desk but was reportedly told to wait for the system to be realigned, according to interviews with a surviving relative.

There is a “high probability” that errors will go undetected, the report said, because a burden is placed on subpostmasters to implement corrections and reliance on communications from the post office to identify errors.

“We believe that, based on the available evidence, there was a reasonable likelihood that Capture could have caused subpostmaster shortages,” the Kroll report concluded.

Lawyer Neil Hudgell, whose firm Hudgell Solicitors represented former sub-postmasters at the public inquiry into the scandal, said the findings were “hugely significant”.

He said the victims’ lives had been “ruined” because Capture was used as evidence against them, and confirmed that his firm was “advising more than 70 people who contacted us about unexplained deaths in the 1990s.” had suffered losses on their branch accounts” when the system was used.

He said: “The cost in human life in the cases we have seen reflects the devastation caused by the hundreds of Horizon-related prosecutions.”

“Like Horizon, it was a flawed system that destroyed lives while officials repeatedly ignored the evidence unfolding before their eyes.

“Once again, it was entirely thanks to the courage, determination and resilience of those affected who came forward to speak out about what had happened to them, and ultimately refused to allow the injustice to go unchallenged, that led to this independent review “has been commissioned.”

Mr Hudgell said there needed to be “quick action on these failings, quicker than we have seen before”.

“Compensation systems can be created to allow people to seek a quick settlement if necessary or to further investigate their own individual cases. “These deficiencies require quick action, faster than before,” he said.

This comes at a time of heightened scrutiny of the postal service over the Horizon IT scandal, in which more than 700 subpostmasters were convicted between 1999 and 2015 because Fujitsu’s faulty software made it appear as if money was missing from their branches.

Compensation has since been announced and, under the previous Conservative government, a new law was passed in May to clear the names of those wrongly persecuted.

Postmaster General Gareth Thomas said: “I was horrified to learn of the problems with the capture system, which predates Horizon. I would like to thank the postmasters concerned, the people who worked with postmasters and parliamentarians to bring this to light.

“Today I met some of the postmasters who have used the capture system and I thank them for their honesty and courage in speaking to about the impact it has had on their lives and livelihoods.

“The independent report released today by Kroll Associates sheds further light on how the errors in the Capture system may have affected the operations of the post offices that used it.

“Once postmasters and others have had time to digest the report, I look forward to hearing their views. In parallel, I will work closely with colleagues across government to thoroughly review Kroll’s report and consider what action should be taken. We will work quickly and plan to determine next steps in December.”

A Post spokesman said: “We have fully supported and will continue to support the government’s independent forensic accounting investigation into Capture software.”

“We have been very concerned from the outset about the reported problems associated with the use of Capture software in the 1990s and sincerely regret past errors that have caused distress to postmasters.

“We remain determined that injustices must be redressed to the greatest extent possible.”