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From: Mark Underwood"
Sent: Fri 13/05/2016 1:55:20 PM (UTC)
To:
Subject: RE: Tim Update
Hi Patricks,
Reads really well. Only thing I would consider changing would be in respect of Suspense Accounts:
“thatPOUs systems-andcentrels the processes in place in this area may not have been performed by Postmasters and
POL employees as well as they might
Mark
From: Patrick Bourke
Sent: 13 May 2016 14:32
To: Rodric Williams; Mark Underwoo
Subject: Tim Update
Importance: High
Mark
We spoke - my suggestion for JM's update to TIM - could you and Rod please advise - especially on Suspense
Accounts. Grateful for a quick turn around if at all possible.
[BEGINS]
Dear Tim
Here is a quick update on the progress of your review and the litigation.
Review
Helpline - In relation to the allegation that our Helpline may have provided incorrect advice to subpostmasters which
resulted in a loss to the accounts, the external firm conducting the work has now completed its investigations.
Although some investigations were limited because certain records are no longer available and there were
inaccuracies in the information provided by complainants, their draft report reveals that there is no evidence to
support the allegations that have been made. We will share this report with Jonathan Swift to ensure it discharges his
recommendation in this area, but we are confident that it does.
Horizon System — We have met again with Deloitte in relation to the extent of the work necessary to discharge
Jonathan Swift’s 3 recommendations on the testing of Horizon, and they have begun work on the substantive phase of
that work. It is, by its nature, a bit of an iterative process in that, dependent on early results, further decisions then
needs to be made on whether or not to explore a bit further. To assist us in this process, I have asked that the new
Chief Information Officer, Rob Houghton, give us his views, using his technical expertise, to sense-check these further
decisions. Our next meeting with Deloitte takes place a week today, on 20 May.
Suspense Accounts — You will recall that Deloitte are also conducting the work, recommended by Jonathan Swift, into
the existence and nature of the relationship between POL’s suspense accounts and specific branch accounts over the
relevant period. This a materially different exercise to the IT testing, since I understand that most of the relevant
accounting processes were/are based paper records and manual reconciliations. Deloitte’s informal and provisional
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view, based on the scoping exercise but before any more substantive work is undertaken, is that POL’s systems and
controls in this area may not have performed as well as they might. We will shortly be having a specific meeting with
Deloitte to discuss this area of work to understand their concerns.
Prosecution Practice — Jonathan Swift has confirmed that Brian Altman QC’s proposal to limit his initial review to
those 19 cases presenting the specific features of double charges in question, and decided on the basis of those
findings whether to extend the exercise, is both sensible and in keeping with his recommendations. That work is
ongoing.
Litigation
Board 24 May — As I indicated in my last update, we are in the process of preparing a paper for the Board meeting on
24 May which will include, at high level, a summary of the claim, the likely timescales, as well as an outline of our
litigation strategy. To make maximum use of the corporate knowledge we have acquired since dealing with the
complaints, to ensure we manage the litigation effectively taking not just legal, but commercial considerations into
account, and to facilitate meaningful reporting to you and others, I will be establishing a steering group to manage it
as a project.
As ever, should you have any questions, do give me a call.
[ENDS]