NFSP00000778 - Letter from Nick Read RE: Options to explore on further compensation of GLO Claimants

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® Post Office Limited
Post Office Customer Support

Finsbury Dials

20 Finsbury Street

EC2Y 9AQ

Calum Greenhow

Chief Executive Officer

The National Federation of SubPostmasters
Evelyn House

22 Windlesham Gardens

Shoreham-by-Sea

West Sussex

BN43 SAZ

16 July 2020
Dear Calum, -
Re: Options to explore on further compensation of GLO Claimants

Thank you for your letter of 9 July 2020. I am grateful for the opportunity to discuss with
you the matters that you raise.

Let me begin by saying that we understand that some GLO Claimants are disappointed with
their allocation of the £57.75m settlement sum. That is not a reflection on the
reasonableness of the offer but rather the result of the arrangements between the
Claimants, their lawyers and their funders. You will appreciate that Post Office was not
party to those arrangements and has no insight into how the settlement sum was divided
between the various interested parties. The settlement was reached following a detailed
examination of the value of the GLO Claimants’ claims and an extensive period of
negotiation where the GLO claimants were represented and advised by their lawyers and
the GLO Steering Committee throughout. The settlement expressly covered the claims you
identify at the third paragraph of your letter and the costs associated with the litigation.

I am not unsympathetic to the unfortunate personal situations some of the GLO Claimants
but, in all these circumstances, I do not believe I could in good conscience recommend that
Post Office unwind the deal that was reached as being in the best interests of Post Office
or the postmasters it currently serves. As such, to the extent that the GLO Claimants are
dissatisfied with their outcomes, I am constrained to say that those are matters they will
need to take up with their lawyers and funders who were responsible for that allocation.

Commenting briefly on the two proposals outlined in your letter:

1. The Historical Shortfall Scheme (HSS) is intended to resolve past issues for current
and former postmasters who believe they have experienced shortfalls related to
previous versions of Horizon but were not part of the Group Litigation and therefore
unable to share in the settlement. This was agreed with the GLO Claimants at the

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time of the settlement. I have tried to explain above why unwinding that
settlement is not a realistic option for Post Office.

2. As Fujitsu continues to be one of our principal suppliers, it would be inappropriate
for me to comment on how Post Office might resolve matters arising out of the
litigation with it. What I can, however, say is that Post Office is committed to
ensuring that the appropriate measures and controls are in place to better manage
the various systems and services which Fujitsu is providing. However, to the extent
that the GLO Claimants wish to raise matters with Fujitsu directly, that is obviously
a matter for them and not something we at Post Office can control.

I appreciate that this may not be the response you were hoping for but I hope that I have
at least managed to explain why Post Office considers it appropriate to abide by the terms
of the settlement reached. I believe we have made significant strides towards our goal of
resetting the relationship with postmasters and, as you know, a concerted program of work
is continuing on this front under my specific direction. In order to maintain the
momentum we have generated, I do however consider that it is necessary for us all to look
forward.

I look forward to speaking to you when we have our bi-monthly call on 11" September.

Yours sincerely,

Nick Read
Group Chief Executive Officer