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House of Commons Parliamentary Question: 2008/5010
Written
Question Question for Return to
tabled 10/09/2009 I answer 12/10/2009 I PB by Noon I 22/09/2009
I Action officer/ I She Briefing/ Copies to:
j division SHE
Question from:
Minister answering:
Brooks Newmark (Braintree - CON)
Rt Hon Pat McFadden
To ask the Minister of State, Department for Business, Innovation and Skills, whether
he has received reports of errors in the Post Office Horizon system which have led to
Postmasters or Postmistresses being falsely accused of fraud; and if he will make a
statement. 291675
Question
The Department has received no such reports. Any issues relating to the Horizon system
are operational matters for Post Office Ltd. I have therefore asked Alan Cook, Managing
Director of Post Office Ltd, to respond directly to the Hon Member and a copy of his reply
Draft Answer
will be placed in the House Libraries.
Print Name
and extension
itehead
Action Officer
‘Approval
Oliver Griffiths
Must be G6 or above
Ministerial Approval
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Mr G Ward Our Ref: ECT 047/09
5! Floor
80 Old Street
LONDON EC1V 9NN
8 May 2009
Dear Mr Ward
Thank you for your letter of 21 April addressed to Alan Cook, Managing Director, Post Office
Limited. Your letter has been forwarded to me for reply on his behalf.
Please accept my apologies for the delay in reply but I wanted to consult with colleagues to
better understand the situation before doing so. I understand that Mr Grayston has now
completed his investigations and has communicated his decision to you.
The internal processes we follow are carried out in accordance with the guidelines agreed with
the National Federation of Subpostmasters, which are robust and designed to protect the
interests of both the subpostmaster and Post Office Limited. We recognise that this is
stressful time and can assure you that every effort is made to communicate a decision as
quickly as possible. I am sorry that this took a little longer than expected in this case but I do,
however, believe that this reflects how seriously your concerns were taken and the
thoroughness of Mr Grayston’s investigation.
From my understanding of your case, you believe that the Horizon system may be
flawed and is responsible for causing a number of losses at your branch over a period
of several years. Post Office Limited is always prepared to consider representations
that are based on proper documentary evidence but nothing has been provided in this
case to substantiate your claims. I am, however, satisfied that your concerns have been
taken seriously and have been fully and properly considered. Nothing during our
investigations has supported your claims of any system errors or unauthorised access to
the accounting data. Additionally, as Mr Grayston has stated in his letter of 24 April, the
Horizon system has been tested in criminal and civil courts and has not been found
wanting.
Turning to points one and two detailed in your letter, in respect of your first point it may help
to clarify that this is not defined as being those instances that have generated error notices but
could simply mean a mistake has been made.
Turning the issues raised in point two, this appears to be the crux of the matter. There
are several possible explanations why a figure may show on the cheque line following
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their despatch from the branch, for example where the total value of the physical
cheques on hand are remmed out but this total does not correspond with the total
amount on the report that was cut off. This would leave an amount on the balance
report that wasn’t physically on hand in the branch. Another example could be where a
transaction is settled to cheque but cash is taken instead or a balance discrepancy is
settled to cheque but a cheque is not put in.
There is no evidence of any fault with the Horizon system that would create such
anornalies, only possible user error. If a subpostmaster feels that the branch trading
statement is incorrect, they should raise this through the NBSC. By completing the
Branch Trading process, as is the case here, the subpostmaster is certifying that its
contents are a true and accurate record of the accounting position within the branch.
I recognise that you will be disappointed with the outcome of your appeal. I am, however,
satisfied that all processes have been correctly. The decision to uphold the termination of your
Contract for Services remains, therefore, final.
Yours sincerely
Michele Graves
Executive Correspondence Manager
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