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CRAIG Y DON
Thave reviewed all the files from the date of Horizon installation until the termination
of Bates’ contract and read all the subsequent correspondence.
Rather than give a blow by blow account and comment on each action, I have
summarised the salient points.
Initially, following Bates’ assertions against the Horizon system, there were clear
attempts made by several people to ascertain if there were systems problems.
Eventually, it was decided to write the debt off and a clear signal was given to Bates
that future losses would be recovered, Significantly, further training and support was
given to Bates at that time,
Later, it transpired — and Bates admitted — that he continued to roll over losses and
had done since the introduction of Horizon. He received a formal letter instructing
him to stop the practice and make good any losses. He did not. Losses continued to be
made and rolled over and the RLM sought advice from Contracts and Legal Services
before terminating the contract,
From the evidence contained in the files it is clear that the Retail Line conducted
themselves correctly and acted in accordance with the rules.
Leaving aside the anecdotal evidence on file which demonstrates Bates? unsuitability
as a Postmaster, the Post Office have an absolute right to terminate a contract with 3
months notice. It was done in this instance following proper investigation, formal
warning coupled with support and additional training — yet the subpostmaster
continued to flaunt and ignore the legitimate instructions from his RLM. The decision
to terminate was not only right ~ it was the only sensible option.
Sandy Stephen
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SS
as
Mr Gly ner Alan Bates
Post Office Limited H
Celtic Court
Tremaines Road
BRIDGEND
CF31 1TZ
¥ January 2002
Reference: Horizon Faults
Dear Mr Chester
As you are aware the cash account for this office is still showing an amount of
£1041.86 in the suspense account, This cumulative figure was placed in the suspense
account towards the end of 2000 and I have on doubt at all that it was due to errors in
the Horizon system over a number of. weeks at that time. In my letters to Gerry Hayes
dated 19" December 2000 and 16% July 2001, neither of which did I receive a written
reply to, I gave further details on this matter.
Treally do think that enough time has now passed for Post Office Limited to have
resolved this issue and that unless I receive a written comment to the contrary by the
end of this month I will take it that this matter is closed. When I signed my contract
with Post Office Counters I did not sign to accept the liabilities arising from the
shortcomings of a less than adequate Horizon system, all liabilities from such a
system are clearly the responsibility of Post Office Limited or ICL Pathway,
Allowing this issue to drag on not only continues the stress and strain of the original
problems but I fear also Continually casts doubt over my honesty and that of my staff.
Therefore I would greatly appreciate it if you would bring this matter to a head in
order that we can move on.
~~ Alan Batts
Subpostmaster Craig-y-don Post Office
Copies to:
Mr D Foster, Gwynedd Branch Secretary National Federation of Subpostmasters
Mr C Baker, General Secretary National Federation of Subpostmasters
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Loss Authorisation
—a0ss Authorisation
To: Mike Wiatrowicz
Management Information
Birmingham
Office Craig-Y-Don SPSO FAD Code 461 614 Amount £1,041.86p
uncrossed. If the third option is the method by which the loss ig be cleared, then
please enter the value to be made good by the Subpostmaster and the amount to be
written-off ( annotated with a*). Could you also enter the date the voucher was sent
to the office. Once completed please return this form i
Provided. Thank you.
Authorised by Signaturd =
Print Name
Date
‘4 Nuoow Webber ohf \y Yom Qn Bact) ~ auld Uy vetea
glee
POL00328099
POL00328099
Lisa J Cairns To: Emlyn Hughes/e/POSTOFFICE@POSTOFFICE
Dave N Barrettie/POSTOFFICE@POSTOFFICE
26/06/2003 10:16 Subject: Craig y Don post office
Message from Mike Wakley:-
"I have today, 26 June, visited Craig y Don post office to check POCA errors. I also spoke to the
subpostmaster, Alan Bates. After examining Alan's last three cash accounts he showed shortages of
£438.45 for week 13, £660.86 for week 12, and £674.81 for week 11.
Alan re-stated his position that he was unwilling to make good losses and was rolling over any losses
or gains. He also stated that if we tried to contractually enforce him in anyway, he would most
definitely take legal action.
Alan, also stated that following a local NFSP meeting he had been made aware of who would be
staying as a result of Network Reinvention. Alan explained he would only stay if he could do the full
range of services.
Alan believes his actions are now a matter of principle.”
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IN CONFIDENCE Celtic Court,
Mr A Bates Tremains Road,
* Subpostmaster BRIDGEND
Post Office Ltd® CF 311TZ
21 Queens Road
CRAIG Y DON Telephone:
Llandudno
LL28 4PS
22 September 2003
Dear Alan
REF: POST OFFICE LTD SERVICES AT CRAIG Y DON
I’m writing following my letter of >>>.
As of today, I have not received a reply from you confirming your intentions in order that
we can make the appropriate arrangements, if possible, to maintain a counter service in the
Craig y Don area.
T would be grateful therefore if you could advise us in writing, no later than >>>>
of your intentions. If we do not receive your reply by this date, we will be left with no
alternative but to seek other premises from which to operate a Post Office counter service in
the area from your last day of service, 5! November 2003.
Yours sincerely
MIKE WAKLEY
Retail Line Manager
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IN CONFIDENCE Celtic Court,
MrARnL *.
Mr A Bates Tremains Road,
Subpostmaster BRIDGEND
Post Office Ltd® CF 311TZ
21 Queens Road moo
CRAIG Y DON Telephone; GRO I
randudno Telephones ¢
LL28 4PS
September 2003
Dear Alan
Ifyou are agreeable, as an interim measure, Post Office Ltd may be able to appoint a
temporary Subpostmaster in order to continue a counter service from the Present site,
However, Post Office Ltd will not accept responsibility for an additional costs arising from
the provision of this service at your premises, Any costs would need to be agreed with any
temporary Subpostmaster, This would allow You to advertise the business if you wished, I
MIKE WAKLEY !
Retail Line Manager I
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Mike Wakley To: Emlyn Hughes/e/POSTOFFICE@POSTOFFICE
ce:
25/09/2003 15:33 Subject: Craig Y Don 464 614 (3 months termination)
To: SG_TS_Agent_Recruitment_Support@POSTOF! FICE
ce:
bee:
Hard Copy To:
Hard Copy ce:
Date: 25/09/2003 13:38
From: Mike Wakley
Subject: Craig Y Don 461 614 (3 months termination)
Please be advised that Mr Alan Bates, Subpostmaster, Cra i9 Y Don SPSO, Llandudno has bee given
three months notice and his last day of service will be 5th November 2003,
Please forward any proforma that [ may need to complete
A vacancy report will be sent shortly
Thanks
Mike Wakley
GRO
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Ge"
¥
Christine Randall To: Rosemary Peat/e/POSTOFFICE@POSTOFFICE
ec: Emlyn Hughes/e/POSTOFFICE@POSTOFFICE, Idris
20/10/2003 10:23 Jones/e/POSTOFFICE@POSTOFFICE, John W
Bourke/e/POSTOFFICE@POSTOFFICE, Michael
Dadra/e/POSTOFFICE@POSTOFFICE, Mike
Wakley/e/POSTOFFICE@POSTOFFICE, Sue
Procter/e/POSTOFFICE@POSTOFFICE
Subject: URGENT: Craig-Y-Don[2}
Rosemary
Following Idris's comments and the urgency of this case. I phoned Fred Hewitt at Cash Handling
[being unable to get through to Mark of the Inventory Team], to ask if he could help us, re-shuffling
part of their schedule he came up with the following, which is his best option: -
Tuesday 04/11/03 between 14.00 - 15.00, we would of course need the cash ready by
14.00.
I have tried to get through to Mike and have left a message on his phone to find out what time we can
close the office, without too much disruption to customers, but I believe from Sue that he was already
speaking to you, which was why I was unable to get through to you also.
Please can you let me know what time I need to book Audits for, given the problems with this case
they will obviously need as much time we can give.
Chris
Rosemary Peat
Rosemary Peat To: Emlyn Hughes/e/POSTOFFICE@POSTOFFICE, Mike
7 Wakley/e/POSTOFFICE@POSTOFFICE
17/10/2008 18:43 ce: Idris Jones/e/POSTOFFICE@POSTOFFICE, Christine
Randall/e/POSTOFFICE, John W Bourke/e/POSTOFFICE, Michael
Dadra/e/POSTOFFICE@POSTOFFICE
Subject: craig y don
Emlyn/Mike,
Can you please urgently check the consultation documents that have been sent to craig y don, the
letter states last day branch is open to the public is 4th November. we have arranged audit on 3
november to coincide with LDOS of 5 November.
Apart from the fact that the audit and de-fund on the monday 3 nov is affecting Llandudno BO I am
mindful that the public and the postmaster are expecting the branch to remain open until end of day on
4 nov. This will undoubtably afffect the audit team when they arrive on the monday to be faced with a
postmaster and customers totally unaware of their attendance, this could make a bad situation
considerably worse.
Are you able to extend the LDOS to 10 nov to give us time to de-fund on thurs 6th instead? Rose
Rosemary Peat
implementation Manager
entation & Equipment Team
Posiline [
2O1KiH0R
Erte ne cles eller ae
ore ce Tad Glos
Nood te hoe, Sesh Deefrnicn Ghar shot tors
POL00328099
POL00328099
Electronic memo
To: Fiona Griffiths/e/POSTOFFICE@POSTOFFICE
ce: Mike Wakley/POCL/POSTOFFICE@POSTOFFICE, Idris
Jones/e/POSTOFFICE@POSTOFFICE
Hard Copy To:
Hard Copy cc:
Date: 28/10/2003 15:03
From: Dave N Barrett
Subject: BLUE FLAG CASE: 1-640426401, Betty Williams MP
[Idris / Mike - to see and let us know if any of this causes a problem]
Fiona - another one for me to sign off tomorrow please - reply to attached letter. Goes like this -
Your ref : C2331/41024
Dear Mrs Williams
I have been asked to reply to your letter of 22 October to Allan Leighton about Craig y Don Post
Office branch temporary closure.
Briefly, we have given notice to Mr Bates the present subpostmaster that we are withdrawing from
our contract with him. This is because we have lost confidence in his willingness to conduct the job in
the manner expected. We gave the contractual notice period of 3 months, which ends on 5
November, The branch will close for business at 17.30 on 3 November to enable us to complete a
final audit and decommission the branch the following day before his contract expires.
It is not our wish to see this branch close, and ever since we gave Mr Bates notice we have been
seeking a response from him as to whether he would be selling his business [thus allowing us the
opportunity to continue the service from the same location, albeit with a new subpostmaster] or if not
whether he would be willing to make his premises available for a temporary replacement whilst a
permanent appointment could be made. We have a person ready to step in as a temporary
replacement, but it was only this week that Mr Bates finally informed us he was not willing to allow
this to happen.
Meantime we have been advertising for a permanent replacement and currently have several
interested parties with premises in the immediate vicinity. Unfortunately, it will not be possible for any
of them to be in a position to take over on 5 November, indeed it is unlikely that anyone will do so
until the New Year. But I am optimistic that we will be able to make an appointment very soon.
I acknowledge the concerns of your constituents about the temporary withdrawal of service. Indeed
several have written direct to us in similar vein. Please assure them we have been, and are doing, all
we can to maintain service here and apologise that due to circumstances beyond our control that is
not possible. if you personally can bring any pressure to bear on Mr Bates to allow the temporary use
of his premises I would be grateful as this would prevent the interruption of service we are facing.
Meanwhile we are ensuring that facilities and staffing are increased at the main branch in Vaughan
St to cope with the extra business caused by Craig y Don closure.
I will ensure you are informed when a permanent appointment is made, as we will be consulting
about the change in premises. Meantime please let me knowm if I can help further.
Yours sincerely
POL00328099
POL00328099
Electronic memo
To: Emlyn Hughes/e/POSTOFFICE@POSTOFFICE
ce:
Hard Copy To:
Hard Copy ce:
Date: 26/11/2003 16:00
From: Mike Wakley
Subject: URGENT - Craig Y Don - Flag case
Emlyn
Very interesting and yet another example of problems with the user and not the Horizon system!
Regards
Mike
-- Forwarded by Mike Wakley/e/POSTOFFICE on 26/11/2003 15:58 —---——--
To: Dave N Barrett/e/POSTOFFICE@POSTOFFICE, Mike
Wakley/e/POSTOFFICE@POSTOFFICE, Richard W
Barker/e/POSTOFFICE@POSTOFFICE
ce: Richard Ashcroft/e/POSTOFFICE@POSTOFFICE, Nicola
Watson/e/POSTOFFICE@POSTOFFICE
bec:
Hard Copy To:
Hard Copy cc:
Date: 26/11/2003 14:28
From: Jane E Smith
Subject: URGENT - Craig Y Don - Fiag case
Dave, Mike, Richard
It was me who spoke to the Subpostmaster at Craig Y Don several weeks ago, the details of the
conversation etc. are as follows:
Background
The Tier 2 advisor in question asked me to have a look at this particular call as I was the one who
developed the Workaround for the Bureau pre-order double debit problem. This is where branches
complete an order form for pre-order and the card details are sent to First Rate. First rate debit the
customer's account and forward the currency to the accepting branch. The problem occurs when the
branch also enters the amount of currency onto the Horizon system and swipes the customer's debit
card. Hence the customer is charged twice for their currency.
TP receive a report from First Rate on a weekly basis, which states which pre-order transactions
were performed at which Branch - it is quite easy to establish where customers have been double
debited and re-credited when comparing data from this report against data on the cash account.
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Bureau Pre-order refunds/Workarounds
The normal procedure for the customer to get the funds back is via their bank, which could take up to
8 weeks. it was deemed that as the amounts for currency are high, we should endeavour to get the
funds back to the customer as quickly as possible. The Workaround enables us todo so - see
attached.
Ld
Pre-order ATP.dor
I agree that as Craig Y Don did not perform the original transaction, the NBSC should not have
advised him to perform the refund. The Subpostmaster should have been advised to inform the
customer to take the documentation required back to the branch at where he/she purchased the
currency. However, if followed correctly, the workaround would not have created a mis-balance, even
though the customer went to the wrong branch.
Phone call to Branch
When I spoke to the branch, my intention was to establish exactly what the NBSC had advised him to
do, and also, if he had followed their instructions to the letter.
If, for example, they had advised him to perform a “new reversal” for a stock item instead of a
pre-order item, when he declared his stock on balancing day, this would have created a mis-balance.
The Subpostmaster confirmed that he had been asked to perform a "new reversal" for Bureau
pre-order and that he had done so as requested. I tried to reassure him that the ‘system would not
have created a mis-balance for this, even if it was performed at his branch. The Subpostmaster was
insistent that the Horizon system was at fault, especially as I had confirmed that he should not have
mis-balanced by following these instructions.
In order to help the Subpostmaster prove his theory I asked him to produce a transaction log for all
transactions performed on that Stock Unit for the week. This would take a while to print and would
use up a lot of till roll, but in order for me to identify a potential Horizon problem, this was necessary.
I explained that this had to be done before the information disappeared from his system.
What I didn't tell the Subpostmaster is that, once the information is archived it is quite a lengthy and
costly process for Fujitsu to extract archived information - we also have contractual restrictions
around the number of this type of request (it's always better if we can get this information directly
from the branch).
I also had suspicions, that the actual mis-balance was caused by user error and had nothing to do
with the system - the transaction log would have enabled me to prove this theory too.
Telephone call to TP
I contacted TP this moming to see if Craig Y Don had any errors on cash account line 00 96
(Pre-order Bureau sales) for week 23. If the Subpostmaster had followed the Workaround correctly,
an error notice should have been generated for £600 (the sales on the Cash Account should have
been £600 less than on the First rate Teport). If so, the error notice should have been associated to
the branch that performed the doubie debit incorrectly in the first place.
For week 23, Craig Y Don showed £2007.06 on line 00 96 and the report from First rate showed
£2007.22 - no £600 difference as expected.
Conclusion
There is no evidence to suggest that the Horizon system is at fault.
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Craig-Y-Don Post Office, Llandudno
The purpose of this short briefing is to inform you of the current situation with
regard to Craig-Y-Don Post Office in Llandudno.
The subpostmaster (SPMR) has been given notice to quit. This decision was
taken by Post Office Ltd because the SPMR was, in their opinion, not fulfilling
his contractual obligations. This is a contractual matter between Post Office
Ltd and the SPMR, and is confidential.
POL is obliged to give three months notice. Notice has been served and the
final day of service at Craig-Y-Don will be November 5.
Post Office Ltd is actively seeking alternative SPMR’s to provide Post Office
services in the area. POL is clear that it wishes to continue providing services
within this geographical location. To this end, as is normal practice, POL has
advertised the vacancy and is encouraging candidates to come forward.
Unfortunately, the SPMR at Craig-Y-Don has not responded to POL’s
repeated requests that he allows a temporary SPMR to provide services at
Craig-Y-Don, thus ensuring a seamless transition. Therefore, it is likely that
any interested candidate will have to run the service from a different location,
although POL will ensure that this is near to the existing Post Office.
Vacancy notices have been posted in all surrounding Post Office branches.
and interest has already been expressed by individuals.
Davies, Senior Welsh Affairs
For more information please ci Ang
16 October 2003
-
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Mr Richard Barker
General Manager, Commercial Network
I Post Office Led
80-86 Old Street
LONDON
I ECIVONN
I 5" January 2005
I Dear Mr Barker
Access to information request, Freedom of Information Act 2000
&
Subject Access Request under section 7 of the Data Protection Act 1998
{am writing to You to request copies ofall information held by Post Office Lid regarding myself and
‘my position as subpostmaster of Craig-y-don Post Office.
[THs should include all Internal and external correspondence, all electronic communications, reports
and reviews by Post Office Ltd personnel,
' Further to this I also require the answers to the following questions-
I. My contract was terminated citing a contractual dause which only requires Post Office Ltd
to give three months notice without giving a reason, Why was this clause invoked at the
time it was?
2. Asa Subpostmaster was I lable for the data the Horizon system generated at my
subpostoffic. if yes how long does that liability last for?
3. Asa Subpostmaster did I have full access into the Horizon system in order to check all the
data I, and my staf, had input into the Horizon system?
4. Did Post Office Ltd ever respond to the paints {raised of access to data and ‘acceptance of
{ability for that gata in the letters from myself dated I9th December: 2000, [8th July 2001,
7th January 2002 and Iéth April 2003?
5. Do Post Office Ltd deem that the Horizon system to be 100% accurate and without flaw or
error?
' believe that my request is clear. If however you require any more information from me in order to
understand this request, please contact me at the earliest opportunity and ideally within the next
week at the address above or by email to
I there ts to be any fee, please contact me as soon as possible to let me know what twill be and
how it was artived at prior to providing the information and would you also provide re wath your
‘schedule of charges,
Ifthe detalls are considerable I would accept all the information provided to be on a CD,
\ Took forward to hearing from you shortly and certainly by the end of the 20 days permitted to
previde me with the information requested,
GRO
~ Mii Bates, &x Subpostmaster Crig.y-don Post Office
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Thanks
Regards
Emiyn
Area Intervention Office 10
60 Deiniol Rd
BANGOR
Gwynedd
LLS7 TAA
Clive Burton ‘To: Area intervention Office 10@POSTOFFICE
7 «
28/04/2005 15:38 Subject. MR ALAN BATES - FORMER SUBPOSTMASTER
CRAIG- Y- DON POST OFFICE- FAD CODE: 461/614
Mr Bates was Postmaster at Craig -y-Don Post Office from 7 May 1998 to 6 Novernber 2003 when his Contract for Services was
terminated by PO Limited.
‘There was a deficiency of £1,227,61 at the final audit and further errors have come to light since his termination which has
increased the amount ‘owing even further.
‘have written to Mr Bates several times to his last known address, equesting payment of this debt, but have received no reply,
Mt Bates'Tast known address, according to HRSC Salford, isthe old Post Office address ie. 21 Queen Road, Craig Y Don,
Landudno, LL30 1AZ
Perhaps you would say if, from local knowledge of the area, itcould be confirmed that Mr Bates still atthat address?
Any comments would be appreciated,
Kind Regards
Clive W. Burton
Agents Debt 3/ Former Sub Postmasters Accounts
No 1 Future Walk
CHESTERFIELD
Derbyshire
$49 1PF
Tet!
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5 July 2005
Mr Alan Bates Legal Services
rt Impact House
2 Edridge Road
London
CR9 1PJ
GRO
Wwww.royalmail.com
Dear Sir
Re: Continued Display of Post Office Ltd's Trade Mark
We understand that you have received a letter from your Local Trading Standards Section regarding
the display of the Post Office trade-mark on your shop's exterior signage.
We would like to reiterate to you that the words Post Office and various stylised forms of the word
Post Office are registered trade marks of Post Office Ltd. We enclose a copy of UK trade mark
registration number 2278732 for your information,
As there is no longer a Post Office branch Operating from the premises, the use of the Post Office
trade mark is without authorisation from Post Office Ltd. Any previous permission to display Post
Office Ltd's trade marks ceased when the Post Office branch was closed and your Subpostmaster
Agreement terminated.
As you are displaying a sign bearing the Post Office trade mark without authorisation Post Office Ltd
requests that the sign is removed from your building. if the sign has already been removed then
we ask that you confirm this in writing.
© Royal Mail 2005- Page 2 of 2
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We nate that you indicated to Trading Standards that you wish to seek legal advice on your position.
We recognise that if you have not already removed the sign that you may wish to seek legal advice
regarding this letter at the same time. Therefore we are also prepared to allow you until close of
business on 25" July 2005 to Tespond to us and we agree to take no further action until that date.
Post Office Ltd reserves all its rights in this matter.
Yours faithfully
Fiona Campbell
© Royet Mail 2005- Page 2 of 2