FUJ00096238 - Email chain between Andy McLean and Gavin Bounds re: POL response to ‘claim’

Evidence on official site

FUJ00096238
FUJ00096238

To: Tait Duncanf
From: Bounds Gavin[/O=EXCHANGE/OU=,
Sent: Fri 6/18/2010 8:43:22 AM (UTC)
Subject: POL response to ‘claim’

-ADMINGROUP1/CN=RECIPIENTS/CN=BOUNDSG]

I will be sending this to Andy Mclean at POL later today.

G

Without Prejudice
Andy,
Thank you for your email.

We are greatly encouraged by the recent re-start on HNG-X Pilot rollout and we are hopeful that the programme will now move
forward to a successful and uninterrupted conclusion. Despite this, it is acknowledged that getting to this point has caused us to
move beyond the period covered by the last arrangements made regarding the schedule and, like you, we would like to discuss this
to ensure our financial position is clear.

In order to progress to a satisfactory resolution I suggest we meet in the next week or so and in preparation I would be grateful if you
would consider and then indicate your likely shortfall on your direct project costs through to the end of August 2010 (with a
breakdown of the costs). This will better allow us to consider your share, along with ours, of any cost overrun.

We anticipate that the arrangements made regarding Service Delivery for Live HNG-X sites continue as previously discussed and
will be handled separately by the Service Management Relationship.

I have had confirmation from Duncan re his and Mike Young's conversation, unfortunately no such agreement was reached. Just to
be clear, while I can sympathise with the intention behind your suggestion, Fujitsu is not contractually liable in any way, any
measures agreed without prejudice would have to be very carefully considered — as you know such a precedent if set by POL to its
Sub-Postmasters might make POL liable for compensation to Sub-Postmasters in all future cases where the service is interrupted
and any related/direct payments by Fujitsu might be misinterpreted. Perhaps some sort of event with dinner as a thank you for
bearing with us for some of the worst affected may be an appropriate solution?

I look forward to a swift agreement with you along the lines above. Thank you for bearing with us to the point where we can now all
see the light at the end of the tunnel, the comments made by David Smith at the recent NFSP conference were extremely
supportive of Fujitsu and the Programme and were hugely heartening for our team. We now look to a great outcome for all
involved.

Kind regards,

Gavin

Gavin Bounds
Business Unit Director
Private Sector Division
Fujitsu

22 Baker Street, London W1U 3BW

From: Andy Z Mclean
Sent: 09 June 2010 16:36
To: Bounds Gavin

Subject: Post Office Costs

FUJ00096238
FUJ00096238

Gavin,

As discussed, I said I would drop you a note to outline our costs that are being incurred by the over-run of HNG. This will allow us to
formalise the process.

As I outlined we are experiencing substantial costs which are largely based upon the team we have had to keep in place to manage
the physical migration in the network. Although we have made some provision for this we are still facing a substantial shortfall.

In addition to this I believe that Duncan and Mike have come to a verbal agreement that Fujitsu would ‘help out’ with a goodwill

payment for subpostmasters involved in the pilot.

How would you like to proceed?

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