POL00346396
POL00346396
Message
From: Paula Vennells!
on behalf of Paula Vennells i.
Sent: 30/05/2014 06:31:48
To: Alwen Lyons ! {, Chris Aujard
Subject: Re: Project Zebra
We should certainly ref the pre/post as otherwise it will look like we've forgotten it. Thx P
Sent from my iPhone
On 29 May 2014, at 22:03, "Alwen Lyons' iL
Paula do you want this to go to the Board this evening as written by Chris, or should it wait until he has
answered the questions in the morning
Thanks
Alwen
Alwen Lyons
Company Secretary
[GRO I
Sent from Blackberry
From: Paula Vennells
Sent: Thursday, May 29, 2014 08:50 PM Coordinated Universal Time
To: Chris Aujard; Colin Stuart; Martin Edwards
Cc: Alwen Lyons; Julie George; Rodric Williams
Subject: Re: Project Zebra
Chris, thank you for your tenacity. This is tedious.
Getting those questions answered is helpful but there are two challenges: firstly, the Board were very
clear that we needed something that referred to pre-2010, there is no reference; is that because the
four 'questions' apply before and after 2010? And secondly, the intention was to have a document that
could actually be used eg., in case reviews, circulated to Spmrs. le., for public consumption. How does a
‘board briefing’ respond to that?
We need this tomorrow - particularly if it is only a board briefing. Not next week. And if I don't get that,
then I shall personally escalate. It is a serious undermining of the relationship if it gets to that stage. To
do so, I shall need a chronology of this fiasco (Chris) and a rough estimate of the cost of all work that has
gone their way over the last couple of years, plus any ongoing (Colin). Inc Bol and Fres if they have any
involvement.
And yes, I think we have to let the board know as you indicate.
Martin did you get me the details of the CEO we met a couple of weeks ago?
Thanks,
Paula
Sent from my iPad
On 29 May 2014, at 21:14, "Rodric William: “I wrote:
POL00346396
POL00346396
All,
I agree with Chris's email.
Deloitte are moving in the right direction but, with the background work they have
done, I think they can turn something around quicker than indicated.
I will follow up with Deloitte tomorrow morning to make sure they can deliver against
Chris's email.
Kind regards, Rod
From: Chris Aujard
Sent: Thursday, May 29, 2014 07:25 PM
To: Paula Vennells; Martin Edwards; Alwen Lyons; Julie George; Rodric Williams
Cc: Chris Aujard
Subject: FW: Project Zebra
Dear all - following the 2 longish calls that I have had with Deloitte today, they have now
come back in the email below with a revised statement of the "deliverable" that they
are proposing to produce for us. From my read of matter, it looks basically OK, but I
would be interested in feedback (especially from Rod). If the general consensus is that it
is OK, I would propose to ask Alwen to circulate the email to the Board with following
message from me:
Dear all - as was trailed last Friday, Deloitte have been running significantly behind
schedule in the production of their report for the Board. A further draft version of it was
produced on Bank Holiday Monday, but unfortunately (and despite the involvement of
additional partner from the forensic team and verbal assurances to the contrary) the
document produced was both opaque and failed properly to address the "exam
questions" they had been set. The matter was accordingly escalated further within
Deloitte this week and in consequence they have now agreed to re-work the document
into a more succinct "Board Briefing" note, addressing head on the alleged failings in the
system. The email setting out their approach is set out below.
The situation is far from satisfactory and Deloitte are in no doubt that they have
significantly blotted their copy book. They are also suggesting they need until
Wednesday next week to finish the job, which again we are pushing back on, hard. That
said, we felt it important to let the Board know where matters stand currently, and the
reasons for the delay. I should add that there is no suggestion from Deloitte that there is
somehow something "wrong" with the system, or that it is not fit for purpose, rather
our experience is that their internal review partner approach is such that any positive
(and helpful) statements that are made in early drafts are edited out before the draft is
released to us.
lam very sorry to be the bearer of the news of yet another delay.
Regards
Chris
POL00346396
POL00346396
From: James, Gareth (UK - Manchester) [mailto}
Sent: 29 May 2014 18:37 .
To: Chris Aujard; Rodric Williams; Julie George
Cc: Whitton, Andrew J (UK - London); Noon, David A (UK - London); White, Ian (UK -
Leeds); Tantam, Mark (UK - London)
Subject: Project Zebra
CONFIDENTIAL AND SUBJECT TO LEGAL PRIVILEGE
Chris,
Further to our conversations today, I wanted to confirm the next steps we propose to
take regarding Project Zebra. These seek to create a shorter document for you
(intended for Board circulation) which focusses on certain key (and most relevant)
aspects of our wider work to date.
This "Board Briefing" document will focus on the four questions we agreed by phone,
being:
1. <!--[if !supportLists]--><![endif]-->What comfort can be taken that Horizon only
allows complete transactions (baskets) to be processed?
2. <I--[if !supportLists]--><![endif]-->What comfort can be taken that the
transactions completed in Horizon are ‘digitally sealed’, to protect their integrity
and make it evident if they have been tampered with?
3. <!--[if !supportLists]--><![endif]-->What comfort can be taken that Horizon's
Audit Store maintains and reports from a complete and unchanged record of all
sealed baskets?
4. <!--[if !supportLists]--><![endif]-->What comfort can be taken that Horizon
provides visibility to sub-postmasters of all centrally generated transactions
processed to their Branch ledgers?
For each of the above questions, we will:
2? <!--[if !supportLists]--><![endif]-->List those relevant high level system design
and process control features that we identified in documentation provided to
us;
2? <!--[if !supportLists]--><![endif]-->Describe the facts relating to the extent and
nature of the Assurance Work we have seen;
2 <l--[if !supportLists]--><![endif]-->State what additional work could be
undertaken to increase the level of comfort.
Our comments will be framed in the context and limitations of our work.
We estimate that this deliverable will take until close of play on Wednesday next week
to produce and issue through our review and signoff activities.
Please confirm that these points of focus are an accurate view of the next steps
discussed this afternoon.
Thanks and regards
Gareth
Gareth James
Partner
Deloitte LLP.
I Data Analytics Website I Finance Analytics Website
UK Futures:
How can UK business drive growth?
http://www. deloitte.co.uk/ukfutures
IMPORTANT NOTICE
This communication is from Deloitte LLP, a limited liability partnership registered in England and Wales with registered number
0303675. Its registered office is 2, New Street Square, London EC4A 382, United Kingdom. Deloitte LLP is the United Kingdom
member firm of Deloitte Touche Tohmatsu Limited ("DTTL"), a UK private company limited by guarantee, whose member firms
are legally separate and independent entities. Please see www.deloitte.co.uk/about for a detailed description of the legal
structure of DTTL and its member firms.
This communication contains information which is confidential and may also be privileged. Itis for the exclusive use of the
intended recipient(s). f you are not the intended recipient(s), please (1) notify itsecurity.uk,
email and delete all copies from your system and (2) note that disclosure, distribution, copying or use of this communication is
strictly prohibited. Email communications cannot be guaranteed to be secure or free from error or viruses. All emails sent to or
from a Deloitte UK email account are securely archived and stored by an external supplier within the European Union,
To the extent permitted by law, Deloitte LLP does not accept any liability for use of or reliance on the contents of this email by
any person save by the intended recipient(s) to the extent agreed in a Deloitte LLP engagement contract.
Opinions, conclusions and other information in this email which have not been delivered by way of the business of Deloitte LLP
are neither given nor endorsed by it.
POL00346396
POL00346396