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Your Ref:
Brooks Newmark MP ‘Our Ref:
House of Commons.
LONDON
SW1A OAA
13 October 2009
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Dear Mr Newmark
I have been asked to reply to you directly on the Parliarnentary Question that you
raised as follows:
‘To ask the Minister of State, Department for Business, Innovation and Skills,
whether he has received reports of errors in the Post Office Horizon system
which have led to Postmasters or Postmistresses being falsely accused of fraud;
and if he will make’a staternent’.
The Horizon computerised accounting system operates in around 12,000 Post.
Office® branches and processes up te 750 transactions a second at peak times,
The system and the processes around it offer a very high level of security and
resilience and are designed to ensure that should part of the system or
equipment fail that the integrity of the accounting records are maintained. The
system has proved to be very robust since its introduction some ten years ago.
The Horizon system was fully tested at the time of the nationwide
implementation end all new software releases are also subject to rigorous testing
prior to going live in order to assure the accuracy of the accounting processes.
Additionally, our ongoing monitoring and control processes ensure that any
performance issues in the ‘live’ operation are quickly identified and resolved at no I
detriment to individual subpostmasters. I
Over the years we have scrutinized many Horizon transaction records to establish
where a discrepancy in the branch accounting may have occurred, This takes
place prior to notifying subpostmasters that an error has been made at their
branch, and asking them to make good the toss, as per the terms and conditions
of the Subpostmaster contract for services. Any subpostmaster who is unhappy
to accept a loss has the opportunity ta provide evidence to support why they
believe that they are nol responsible for it. We do take the concerns of our
subpostmasters extremely seriously and we do thoroughly investigate matters
when they are raised with us but there has never been any evidence found that
shows that the Horizon systern has caused accounting errors.
www.postoffice.co,uk
istered in England and Wales. Registered No, 2254540, Registered Oifice 80-86 Old Street, London, ECLY SNN
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In the ten years since Post Office Limited started using Horizon the integrity of
the system has also been tested in both the criminal and civil courts and has not
heen found to be wanting.
I am satisfied that there is no evidence to doubt the integrity of the Horizon
system and that it is robust and fit for purpose,
I hape this information is helpful ta you.
Alan
Managing Director