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14 February 2012 0
Memo
Post Office Ltd
Legal Services 3" Floor
3" Floor Royal Mail House
6a Eccleston Street Clippers Quay
Victoria Rae
London us
SW1W 9LT
Your Ref: CRM 267013 RGW
Our Ref: POLTD /1011 / 0186
Horizon data for the period of December 2010 to January 2011 was obtained and examined. The
result of the analysis shows that stock on hand has been manipulated.
For example the summary with the indentifying mark SB/21 shows that on the 8 November 2010
first class large stamps with a total value of £132 were sold. No further first class large stamps
were sold but on the 24 November 2010 first class stamps with a value of £990 were reversed out
of the Horizon system.
No further first class large stamps are sold and on 12 January 2011, first class stamps with a value
of £3,300 are again reversed out of the Horizon system. Then on 25 January 2011 first class large
stamps with a value of £33 are sold.
During the period of 2 November 2010 to 31 January 2011 first class large stamps with a value of
£165 were sold and first class stamps with a total value of £4,290 were reversed out of the Horizon
system.
By performing these actions the stock level would be increased by the difference between sales and
the reversed amount. For example:
50x 1c Large sold £165
Reversed value £4290
Difference £4125
The stock level would be increased by £4125 and by this increase the cash level would be
decreased by the same amount of £4125.
When the branch performs their Branch Trading Statement, the accounts should show a surplus of
£4125. The sub postmaster under the terms and conditions of their contract would the remove this
surplus from the accounts.
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The same practice has been used on the 50 x 2™ class large, self ad sheet 1c x 100, self ad sheet
2™ x 100. The majority of these transactions (£11,817.50) have been performed under the User ID
of KISOO1 and KISOO2, Khayyam Ishaq the sub postmaster.
The remaining £2985 where done on 24 November 2010 under the User ID of ULIO01, who is the
clerk Umar Liaquat. The 24 November 2010 is a Wednesday and would be the day that Mr Ishaq
has stated that he would check the cash. The inference drawn from this is that if Umar Liaquat is
responsible for inflating stock levels, when Mr ISHAQ counted the cash he would have noticed a
significant surplus in the cash of nearly £3,000.
The examination of the Horizon data also shows that Mr Liaquat was logged onto the system at
9 am and logged off at 17.10. The data shows Mr Ishaq being log on and off the system a number of
times. See table below:
User ID Date Time Stock Unit Activity
ULIOO1 I 24/11/2010 I 09:00:44 A User ULIO01 logged on.
KIsoo4 24/11/2010 I 09:24:21 AA User KISOO1 logged on.
User KISO01 Logged off
kKIsoo1 24/11/2010 AA by system due to inactivity
Kisoo1_I 24/11/2010 :00: AA User KISOO1 logged on.
ULIO04 24/11/2010 I 17:10:44 AA User ULIOO1 logged out
Kiso01__I_ 24/11/2010 I 17:10:51 AA User KISOO1 logged out
KISO01 24/11/2010 I 17:11:12 AA User KISOO1 logged on.
ATMOO1 I 24/11/2010 I 17:11:17 ATM User ATMOO1 logged on.
ATMOO1_I 24/11/2010 I 17:48:54 ATM User ATMOO1 logged out
KIsoo4 24/11/2010 I 18:15:12 AA User KISOO1 logged out
The total difference between stamps sold and stamps reversed out of the system is £14,802.50
Although at the audit the stock was adjusted by £17,961.18 (SB/4) the inference is that stock to the
value of £3158.68 may have been reversed out of the Horizon system prior to the dates. It should
be taken into account that the analysis shows the large values reversed out of the Horizon system
and does not take into account the minor values reversed out for example stamp cards on hand 299,
actual stamp cards 298 (SB/3).
Mr ISHAQ has stated that he checked the cash on hand every week but changed his version of when
he actually checked the stock levels. However if has indeed checked the cash every week then he
would have noticed a discrepancy in the accounts as the stock levels were increased and therefore
the cash required is decreased by the same amount, this is irrespective of whenever he checked the
stock levels.
It should also be noted that on the Branch Trading Statements TP 06 (SB/7) to TP 09
(SB/10), for example the self adhesive 2™ class x 100 increased in volume from 137 sheets
to 407 sheets on hand.
Enquiries have been made with HR and they confirm that no claims for Holiday substitution
or sick substitution were made by Birkenshaw Post Office branch between January 2009
and February 2011.
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The file is returned for further advice regarding possible charges. A copy of SB/21 can be
found in. Appendix B of this file.
Stephen Bradshaw
Security Manager
Post Office Ltd Security Team
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