UKGI00001743 - Email from Mike Whitehead to Swinson MPST, cc Will Gibson, Peter Batten and others re: Horizon: James Arbuthnot MP - Response to Post Office’s Horizon Computer System

Evidence on official site

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From: Whitehead Mike (ShEx)[/O=DTI/OU=DTIHQ/CN=RECIPIENTS/CN=MJWHITEH]
Sent: Mon 08/07/2013 11:32:

To:

Ce: Batten Peter

Subject: Horizon: James Arbuthnot MP

Claire

Following Jo's earlier telephone call with James Arbuthnot, suggested briefing for the Whips' Office:

Briefing for the Whips on James Arbuthnot tabling an Urgent Question to obtain a Ministerial
statement in response to Independent review by forensic accountants (Second Sight) of Post Office
Ltd's Horizon computer system which records all transactions conducted across the entire post office
network.

The issues covered by the review relate to a very small number of ex-subpostmasters whose
contracts were terminated and were subsequently convicted by the Courts for false accounting or, in
some more serious cases, theft and fraud.

The report confirms that no systemic problems with the Horizon system were found but also found
scope for Post Office Ltd (POL) to improve aspects of its support and training for subpostmasters.

POL has welcomed the report and committed to put in place additional measures to address historic
issues, improve future processes and to work with subpostmaster representatives to examine
potential changes in support measures for subpostmasters.

Though Post Office Ltd is wholly owned by the Government, it operates on an arm's length basis in
determining its commercial and operational strategies and policies.

The issues raised by the Report are wholly operational matters for POL and do not relate in any way
to Government policy decisions or actions. A government statement could only reiterate that there
was no Government role in the issues and it was not appropriate for Government to become
involved.

A second aspect on which James Arbuthnot (JA) has indicated a wish to see Government comment
or action is in respect of identifying a means of redress for ex-subpostmasters who were advised to
by their legal advisors to plead guilty to false accounting to avoid charges of theft and fraud (which

potentially carry risk of imprisonment if found guilty).

JA is seeking to imply that the Report suggests that new evidence might be found on the basis of
which some false accounting verdicts could be challenged/appealed. He has a constituent who was
convicted of false accounting but who has blamed her circumstances on the Horizon system and lack
of POL support in investigating the financial discrepancies which occurred in her subpost office.

He also appears to take the view that a Government statement could open the review and or appeal
against these convictions.

In summary we would suggest that there is a strong case against tabling an Urgent Question on the
basis that a Government statement could not achieve the objectives JA seeks because:
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+ the issues are not related to any Government action or policy decision but are wholly
operational matters for Post Office Ltd in which Government has no role.

+ no systemic problems with the Horizon system have been identified by the review.

+ the number of subpostmasters who have experienced problems are a minute proportion of
the tens of thousands of people successfully using the system across the network of over
11,500 branches on a daily basis

+ Post Office Ltd has proposed measures to address some of the points about subpostmaster
support and training raised in the Report

+ Government cannot intervene in the legal process to review or appeal past convictions.

Mike

Mike Whitehead

Department for Business, Innovation and Skills
Shareholder Executive

Royal Mail and Postal Services

1 Victoria Street

London SW1H OET