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McKeag & Co Solicitors old won Garade
DX 60353 Gosforth oNotinghamn
NG1 2LH
Date: 19 February 2013
DX 10032 Nottingham
Our Ref: AC2/21392/RP
Email: andy.cé
Secure Email: andy.cash@/~
Dear Sirs
Re: Post Office Ltd v. Kim Elizabeth Wylie
Newcastle Crown Court
Date of next hearing: 5 March 2013 for trial
Thank you for your letter date 14" February 2013. Please find enclosed a Notice of
Additional Evidence which includes two statements from Stephen Bradshaw dated 20
November 2012 and the 19 February 2013 as well as an exhibit SB/3 which is an extract
from the Sub Postmaster’s contract.
We note that your expert report was not commissioned until the 28 January 2013, a copy of
which did not reach us until the 14 February 2013, We also note Mr Turner does not
comment on the content of our expert report which was served with a Notice of
Additional Evidence on the 28 November 2012.
The Crown’s position on the integrity of the Horizon system is set out in Steve's
Bradshaw’s statement dated 20 November 2012. There is no further disclosure in relation
to this matter.
Having considered the requests for further disclosure as set out in Mr Turner’s report, the
Crown would comment as follows:
1. At the time of the audit in September 2010, the office would have been using
Horizon Online and so there would not be any useful evidence contained on the
terminal itself. All of the relevant data is recorded on the Horizon system.
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2. Our expert report details the processes and standards that are observed when
securing/ preserving the computer data.
3. We have served the call logs received from the Winlaton PO, please see exhibit
RD/11 pages 40-55.
In order to assist your expert with viewing the Horizon data, the Officer in the case will
send a CD containing the Horizon data to you within the next few days. Signed and
dated copies of the enclosed statements will also be served alongside the CD.
Should you require any further information, please do not hesitate to contact Rachael
Panter at the above office on}
Yours faithfully
CG
Cartwright King
Enc.
IN THE CROWN COURT
AT NEWCASTLE
REGINA
(POST OFFICE LTD)
v
KIM ELIZABETH WYLIE
TAKE NOTICE that, in addition to the evidence given in the Magistrates’
Court, further evidence, the effect of which is set out herein, may be given at
trial. Unless you serve a notice on me within seven days of receipt of this
Notice objecting to this course, I propose that the evidence of the witnesses
listed below shall be tendered in evidence in accordance with Section 9 of the
Criminal Justice Act 1967.
Dated this 28 November 2012
Statements of: Page
Gareth Jenkins 15-26
Steve Bradshaw 27-30
Steve Bradshaw 31-32
Steve Bradshaw 33 - 34
Exhibits:
Gy/1 61-68
GI/2 69 - 82
SB/1 83
SB/2 84
SB/3 85-90
For Graduated Fee Scheme purposes - the updated page count is now:
Statements Exhibits Photographs etc
30 90 0
In addition 2 x CD disks containing images of word documents downloaded
from the Fujitsu data and served in evidence.
Signed
Rachael Pariter —_—_—_—
To: The Chief Clerk, The Crown Court
Messrs McKeag & Co. Solicitors.
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List of Witnesses
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Post Office Ltd
Rv I Kim Elizabeth WYLLIE
Name
Page Numbers
Geraldine DRESSER x 1 Statement
Robert BROWN x 1 Statement
Helen DICKINSON x 1 Statement
Robert DAILY x 1 Statement
Grarkn Jeukting
Steve bradshaw
Sterne Braadhaw
Steve bradshaw
I- 4
S
6
I IF
(S-26
24 -30
3l- 32
33- 2.
NAME AND ADDRESS OF PROSECUTING SOLICITOR FOR ALIBI WARNING (IF ANY)
Post Office Ltd Agent acting on behalf of POL LS
Legal Services Address:
148 Old Street Cartwright King
LONDON Majority House
Eclv 9HO 51 Lodge Lane
Derby DES1 3HB
Telephone/ J Telephone N
General Office Reference:
Reference POLTD/1011/0100
POLOoy
Version Apr 2012
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Post Office Ltd
CONFIDENTIAL
Witness Statement
Criminal Justice Act 1967, Section 9; Magistrates Court Act 1980, sub section. §A(3)(a) and 58; Criminal Procedure Rules 2005, Rule 27.1
Statement of: Stephen BRADSHAW
Age if under Over 18 (if over 18 insert ‘over 18’)
18:
This statement (consisting of I pages each signed by me) is true to the best of my knowledge and belief
and I make it knowing that, if it is tendered in evidence, I shall be liable to prosecution if I have wilfully
stated in it anything which I know to be false or do not believe true.
Dated the 20 day of November 2012
Signature
Further to my previous statement 19 November 2012.
After a number of meetings between Post Office Management and Members of
Parliament in relation to the Court cases, it was agreed that the Post Office would
undertake an external review of the cases which had been raised by the Member's
constituents. As the Post Office continues to have absolute confidence in the
robustness and integrity of its Horizon system and it branch accounting processes, it
had no hesitation in agreeing to an external review of these few individual cases.
In order to provide assurance to the interested parties, it was proposed that the review
by undertaken by independent Auditors 2" Sight. The review will be specifically
restricted to the cases raised by the MPs as well as reviewing the accounting
procedures, processes and reconciliations undertaken in relation to the cases in
question. Before formal instructions are given to the Independent Auditors, agreements
will be sought from all interested parties, namely the Members of Parliament and Justice
for Sub postmasters. The Sub postmasters have requested a Forensic Accountant of
their choice be appointed to oversee the Cases being reviewed by 2" Sight.
All the above is accepted based on the terms of the Review being carried out, but this is
in no way an acknowledgement by the Post Office that there is an issue with Horizon.
Over the past ten years many millions of branch reconciliations have been carried out
with transactions and balances accurately recorded by more than 25,000 different sub
Signature Signature witnessed
by
POLO11 (Side A) Version April 2012
ZI
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CONFIDENTIAL
Witness Statement
Criminal Justice Act 1967, Section 9, Magistrates Court Act 1980, sub section. 5A(3)(a) and 8; Criminal Procedure Rules 2005, Rule 27.1
Page of Page
s
Continuation Statement Stephen BRADSHAW
of
postmasters and the Horizon system continues to work properly in Post Offices across
the length and breadth of the UK. When the system has been challenged in criminal
courts it has been successfully defended.
Signature Signature witnessed
by
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32
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Post Office Ltd
CONFIDENTIAL
Witness Statement
Criminal Justice Act 1967, Section 9; Magistrates Court Act 1980, sub section. 5A(3Xa) and 58; Criminal Procedure Rules 2005, Rule 27.1
Statement of: Stephen BRADSHAW
Age if under Over 18 (if over 18 insert ‘over 18’)
18:
This statement (consisting of I pages each signed by me) is true to the best of my knowledge and belief
and I make it knowing that, if it is tendered in evidence, I shall be liable to prosecution if I have wilfully
stated in it anything which I know to be false or do not believe true.
Dated the 19 dayof February 2013
Signature
Further to my previous statements dated 19" November 2012 and 20" November 2012.
I can confirm from Post Office Ltd Human Resources records that Kym WYLLIE was
appointed sub postmaster of Winlatoni~
GRO!on 8 February 2003.
Sub postmasters are contracted to provide services to customers. As such they receive
a monthly remuneration commensurate with the level of business conducted at the
branch and are provided with a balance of cash and stock to allow them to provide
these services.
All transactions conducted by the sub postmaster are recorded on a computer based
accounting system known as Horizon, which is used in all Post Office branches. The
system records all transactional data inputted by a counter clerk during an accounting
period and provides daily and weekly records enabling counter clerks and sub
postmasters to produce a balance of cash and stock on hand.
At the completion of each Branch Trading Statement if there is a shortage in the
accounts the sub postmaster in accordance with his contract, must make good the
shortage by accepting the shortage on the Horizon system prior to rolling over the cash
and stock into the next Branch Trading Period.
Signature Signature witnessed
by
POLO11 (Side A) Version April 2012
33
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CONFIDENTIAL
Witness Statement
Criminal Justice Act 1967, Section 9, Magistrates Court Act 1980, sub section. 5A(3)(a) and 5B; Criminal Procedure Rules 2005, Rule 27.1
Page of Page
Continuation Statement Stephen BRADSHAW .
ol
For all shortages of £150 or less the sub postmaster is expected to immediately make
good this shortage by either cash or cheque. For all shortages over £150 he can make
good the loss on the Horizon system by “settling centrally”. By settling centrally the sub
postmaster will pay a sum out of his remuneration each month until the shortage has
been cleared.
Section 12 of the sub postmaster’s contract deals with the Responsibility for Post Office
Stock and Cash.
Sub section 12 and 13 of this contract deal with Losses.
12. The sub postmaster is responsible for all losses caused through his own negligence,
carelessness or error and also for losses of all kinds caused by his assistants.
Deficiencies due to such losses must be made good without delay.
13. The financial responsibility of the Sub postmaster does not cease when he
relinquishes his appointment and he will be required to make good any losses incurred
during his term of office which may subsequently come to light.
Sub section 14 of this contract deals with Gains.
14. Surpluses may be withdrawn provided that any subsequent charge up to the amount
withdrawn is made good immediately.
I now produce Section 12 and 13 of the sub postmaster’s contract as SB/3.
Signature Signature witnessed
by
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Post Office Ltd
List of Exhibits
Rv Kim Elizabeth WYLIE
Court Exhibit I Identification Page ae ape
Number Mark Numbers Short Description of Exhibits
GD/1 l- 3 _I Audit Report
RD/1. y Notebook entry visit to Winlaton PO
RbD/2 S-6 I 65001 Legal Rights Document
RD/3 -/9 I Tape Transcript of Master Tape 072772
RD/4 20 ~2b Tape Transcript of Master Tape 073431
RD/5 27 -33 Tape Transcript of Master Tape 073432
RD/6 etre I Master Tape 072772
RD/7 ep Master Tape 073431
T
RD/8 core I Master Tape 073432
RD/9 . Branch Trading Statement TP 3 dated 26/05/10 to
34-36 24/06/10
RD/10 Branch Trading Statement TP 4 dated 24/06/10 to
34 -341I 28/07/10
RD/11. 40-SSI NBSC call logs
RD/12 S6__I Letter re concerns from Horizon Online Advisor
RD/13 53-59 Horizon Balance Snapshot 17/07/10 showing cash on
hand £314,889.36 and a discrepancy of £34,101.29
RD/14 Ss a Notebook entry Master Tape seal numbers
RD/15 Horizon Cash Declaration print out dated 09/09/10
60 timed at 18.12 showing cash on hand total £17,024.29
& £1 coins declared £15,364
Gl) I 61-68 I Hon zn Integrity measures
GIT/Z I69-82I Hone In@qilt, mons
are "
SB/! 33 IPaymout mack for Holiday Suaskihin
SB/2 84 I Exhad from He Holidaup archive
S8&/3 8540 tx wa ck fom Cb Pstmarte/)) couhach.
POL O12 Version Apr 2012
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SSBB
POST OFFICE COUNTERS LTD
SECTION 12
RESPONSIBILITY FOR POST OFFICE STOCK AND CASH
CREDIT STOCK OF STAMPS ETC.
1
The Subpostmaster on taking up his appointment is supplied with suitable Post Office
stock, the amount of which is fixed by the Regional General Manager.
CASH BALANCE
The Subpostmaster is permitted to hold Post Office Counters Ltd cash normal to meet
payments at his sub-office after due allowance has been made for expected receipts and
in accordance with official accounting and security instructions.
The Subpostmaster is expressly forbidden to make use of the balance due to Post Office
Counters Ltd for any purpose other than the requirements of the Post Office service;
and he must, on no account apply to his own private use, for however short a period,
any portion of Post Office Counters Ltd funds entrusted to him. He must also be
careful to keep the Post Office money separate from any other monies. Misuse of Post
Office Counters Ltd cash may render the offender liable to prosecution and, or, the
termination of his Contract of Appointment.
ACCOUNTS
4.
The Subpostmaster must ensure that accounts of all stock and cash entrusted to him by
Post Office Counters Ltd are kept in the form prescribed by Post Office Counters Ltd.
He must immediately produce these accounts, and the whole of his sub-office cash and
stock for inspection whenever so requested by a person duly authorised by the
Regional General Manager.
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SECURITY OF CASH, STAMPS ETC.
10.
11.
The Subpostmaster is held strictly responsible for the safe custody of cash, stock of all
kinds and other Post Office Counters Ltd property, papers and documents, whether
held by himself or by his Assistants, and should keep them in a place of security,
especially at night.
The Subpostmaster is responsible for maintaining a standard of security sufficient to
enable him to meet the obligations laid on him by paragraph 5 for the safe keeping of
Post Office Counters Ltd cash and stock placed in his care. If any circumstances arise
which lead him to doubt whether he can do so he should immediately consult the
Regional General Manager.
In deciding the standard of security which it would be reasonable to require under
paragraph 6 Post Office Counters Ltd will have regard to (a) the circumstances in
which the Subpostmaster was appointed, and in particular the standard of security
then accepted; (b) the length of time since his appointment; and (c) any particular
circumstances affecting the sub-office which appear to be relevant.
All vouchers for payments e.g. Postal Orders, Allowance Dockets etc., should be placed
in a suitable receptacle (cardboard box or strong envelope), labelled “Paid Vouchers”
and at the close of business kept separately from cash and stock in another secure place,
such as a locked drawer or cupboard.
The Subpostmaster must be careful to keep his stocks of all kinds in such a manner that
they remain in good condition. The stocks must be protected against damp and dust.
Datestamps used for authenticating documents (e.g. Postal Orders) or stamping
correspondence must be kept in a position on the counter where they are out of reach
of members of the public. When not needed for work they must be locked away.
Precautions should be taken to guard against the risk of fire.
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LOSSES
12. _ The Subpostmaster is responsible for all losses caused through his own negligence,
carelessness or error, and also for losses of all kinds caused by his Assistants.
Deficiencies due to such losses must be made good without delay.
13. The financial responsibility of the Subpostmaster does not cease when he relinquishes
his appointment and he will be required to make good any losses incurred during his
term of office which may subsequently come to light.
GAINS
14. Surpluses may be withdrawn provided that any subsequent charge up to the amount
withdrawn is made good immediately.
THEFT OR BURGLARY
15. Ifa theft or burglary is committed or attempted at a sub-office, whether or not official
cash or stock is stolen, the facts must be reported at once to the Police and to the
Regional General Manager by the person who first makes the discovery.
MISSING OR STOLEN STOCK
16. If a Subpostaster considers that any stock items have been accidentally lost, or stolen
he should make a report, in accordance with Appendix 1, as quickly as possible to the
Regional General Manager.
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RELIEF
17. COUNTER LOSSES A Subpostmaster may exceptionally not be required to make good
the full amount of certain losses at his office. If he feels entitled to relief in making
good a loss he should apply to the Retail Network Manager.
18. THEFT OR BURGLARY The question of granting relief will depend upon whether the
Subpostmaster has taken reasonable precautions to safeguard the official cash and
property.
19. FRAUD All cases of fraud or attempted fraud should be reported immediately to the
Regional General Manager.
(APPENDIX 1 FOLLOWS)
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APPENDIX1
ACCIDENTAL LOSS
If at any time any items of stock (including stock of no intrinsic value such as motor vehicle
licences) is found to be missing. Steps must be taken at once to ascertain what has
happened to the missing items. The serial numbers must be ascertained (see 2(a)) and
verified by examination of items in stock, and the requisition forms examined to
discover whether or not any of the items purport to have been issued out of sequence.
All the requisition forms for the previous 3 months must at the same time be
impounded and held for instructions. If, after careful search, the missing items cannot
be found and are thought to have been mislaid only, or inadvertently destroyed, a
preliminary report of the loss giving the serial numbers of the items in question must be
sent to the Regional General Manager.
STOLEN ITEMS
1. Ifasa result of burglary, break in, theft, or suspected theft any items of stocks are
missing the facts should be reported as quickly as possible to the Regional General
Manager.
2. The further details which will be required, and which should be obtained and
submitted to the Regional General Manager at the earliest opportunity, are as follows:
(a) The denominations, total values and serial numbers of missing or stolen items, so
far as they are known, with serial numbers of any remaining stocks.
(b) Astatement as to whether the date stamp of the sub-office has been stolen, and if
so, particulars of the type in it when stolen. If the date stamp has not been stolen
a statement should be given which should intimate whether there is a reason to
believe that it has been used upon the stolen items.
() A specimen impression of the date stamp and, if it was stolen, particulars of the
type in it when stolen.
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(d) A statement of the circumstances which are thought to show that a theft has been
committed and of the supposed date, time and method of commission. It should
include, if possible, written report from the person who last saw the missing
items and the person who first discovered the loss. The former should say when
the items were last seen, in what place and in what kind of receptacle (locked or
unlocked) they then were. The latter should state how and when the loss was
discovered and describe exactly the condition of the place and of the receptacle
from which the items were apparently taken.
(e) Particulars of any cheques, including the transaction for which they were
accepted.
END
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