POL00448684
POL00448684
From: Henry Staunton
Sent: Sat 29/04/2023 8:23:17 PM (UTC)
To: Diane Blanchard !
Subject: Fwd: Discrepancies in postmaster branches - IN CONFIDENCE
Attachment: Commitment
Di,
This is the email to which I have just referred .
Best ,
Henry
Sent from Outlook for iOS
From: Nick Read
Sent: Saturday, April 29, 2023 6:
To: Henry Staunton!
Subject: FW: Discrepancies in postmaster branches - IN CONFIDENCE
Henry,
This is starting to become complicated. I am very clear that Tracy does not feel under
pressure when dealing with a NED. This is for you or I to address.
Tracy rang me yesterday with other observations. It would be worth us discussing these as a
three, so we can decide the best way forward.
Shall we find some time on Tuesday or Wednesday ?
Best,
Nick
Nick Read
Group CEO
Finsbury Dials, 20 Finsbury Street
London, EC2Y 9AQ
postoffice.co.uk
From: Tracy Marshall /
Sent: 28 April 2023 10:27
To: Nick Read
Cc: Martin Robert:
Subject: Discrepancies in postmaster branches - IN CONFIDENCE
POL-BSFF-WITN-006-0013133
POL00448684
POL00448684
Importance: High
Hi Nick,
Apologies for the lengthy email but conscious that we didn’t get to speak in more detail about this
with Henry on Tuesday evening so I wanted to update you more fully on the interactions with Elliot. A
few headlines below:
* Elliot is currently in the application process for two branches — Wood Green and Ware:
© For Ware, he has already proceeded through the application process and has been
successful. The next step is for us to send him a contract, which I’ve asked my team to put
on hold.
© For Wood Green, he is in the application process, along with other applicants. The
business plan process has been completed and we are waiting to conduct suitability
assessments (interviews) with the applicants., This is also paused and generating a bit of
noise with the other applicants and the local MP who is keen to see a branch in the area
reopen as swiftly as possible.
* Elliot was previously advised that the above cases were on hold and understood that this was
a reasonable risk management position.
* Elliot called me yesterday about the two cases. I made it very clear that whilst investigations
were still ongoing and we were not yet in a position to have established what is an accepted or
a disputed loss, it would be remiss of me, as the accountable Onboarding Policy owner, to
progress his application.
* He respected my view although was obviously keen that we did progress his application. He
has since provided me with what he refers to as a ‘commitment’ (attached to this email) that he
will work with us to establish the losses, set up an appropriate repayment plan if required, and
take steps to ensure this doesn’t happen again.
I would welcome your thoughts on whether you'd like me to brief Henry more fully to enable him to
have a conversation with Elliot. My view however is that, despite the letter of comfort attached, I am
uncomfortable progressing his applications with a £208k loss still being investigated for his branches.
Happy to chat through further and if you need it, there is more detail below on the discrepancy
position, which John Bartlett has kindly provided.
Many thanks
Tracy
© Elliot was appointment as a NED on 3" June 2021 and made a Directors Declaration on 26
June 2022 at which time the amount sitting with the PAS team as outstanding was £64,091.24.
He had previously made a number of small repayments between 16 June 2020 and 22 March
POL-BSFF-WITN-006-0013133
POL00448684
POL00448684
2021 totalling £16,448
* Between 26 Sept 2019 and 28 Feb 2023, POL sent 83 emails, monthly statements, or
reminder letters to UOE/Elliot.
* By 27 Feb 2023 the UOE unresolved shortfall amount had risen to c£213k
© A few days after Elliot was made aware of the investigation at CIU’s and CoSec’s request,
UOE’s account received a positive amount on 16 March 2023 of c£113k. Initially this was
thought to be a payment made to reduce the shortfall but investigation now shows this to likely
be a TC linked to double remming of an ATM.
* On SApril 2023, Elliot attended a voluntary investigative interview. At the request of my On-
Boarding Team, CIU informed Elliot that the process of him taking on two additional post offices
had been paused. He understood that this was a reasonable risk management decision and that
restarting the process would be reviewed once the shortfall figure had been established and
the business risk understood. (The investigative meeting was audio recorded with Elliot’s
agreement.)
* He stated that his email filters probably screened out emails from POL that did not originate
from a person’s email. Post interview, CIU has considered this and on all but one the occasions
Elliot replied to POL emails, he replied to an email sent from
postmasteraccou
* Elliot informed CIU in interview that his branches do not have the Review and Dispute facility
on their terminals. This is in line with the set up for a Strategic Partner (which Elliot previously
was classed as). UOE does have an Assign to Nominee function, the standard procedure for
which puts the onus on the postmaster to contact BSC to discuss disputed amounts having
conducted their own internal review of the transactions first. If the postmaster does not
contact BSC then no action will be taken to investigate the transactions. There are 10076
TCs/Branch Deficits across this time period. On fewer than 10 occasions UOE staff have
contacted BSC to dispute.
* On 12 and 13 April 2023, Branch Assurance visits were conducted at all 7 of Elliot’s branches.
CIU have not yet seen the reports but a summary shows an additional cash discrepancies across
the branches of c£16,700 and stock changes of £59,044.
© As of 24 April 2023, the UOE’s unsettled (and as yet undisputed) shortfalls total c£208k
which includes the c£59k of stock
mee Sin
* In respect of conflicts of interest, CIU is stil
The below may assist and here is the link to the Interim Investigation Report that went to Nick
ittps://poluk.sharepoint.com/sites/CentrallnvestigationsUnit/Shared%20Documents/Forms/Alllt
ems.aspx?id=%2Fsites%2FCentralinvestigationsUnit%2FShared%20Documents%2FCase%20files%202
022%2F004%2D22%2DProject%20Venus%2FProject%20Venus%20Interim%20Investigation%20Repor
t%2Epdf&viewid=7703a623%2D3121%2D413d%2Da441%2D503efaddb553&parent=%2Fsites%2FCen
trallnvestigationsUnit%2FShared%20Documents%2FCase%20files%202022%2F004%2D22%2DProject
%20Venus
Tracy Marshall (She/Her)
Retail Engagement Director
POL-BSFF-WITN-006-0013133
Retail Team
[ GRO I
Finsbury Dials, 20 Finsbury Street
London, EC2Y 9AQ
POL00448684
POL00448684
POL-BSFF-WITN-006-0013133