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WITNESS: JACQUELINE MCDONALD
STATEMENT NUMBER: WITNO164_01
EXHIBITS: 0
DATED: Jan 14, 2022
POST OFFICE HORIZON IT INQUIRY
FIRST WRITTEN STATEMENT OF MRS JACQUELINE MCDONALD
THIS STATEMENT IS PROVIDED IN RESPONSE TO THE RULE 9 REQUEST OF
THE PUBLIC INQUIRY DATED 29/10/2021 TO ADDRESS THE HUMAN IMPACT OF
THE FAILINGS OF THE HORIZON IT SYSTEM
I, MRS JACQUELINE MCDONALD, Date of Birth: [
PERSONAL BACKGROUND
1. I was born and brought up in Preston in England, but then lived in America for
21 years. I was employed for most of that time as a Nursery Nurse at the British
Embassy, but subsequently ran a gym and a farm with my husband, who I met
in America. My husband, i ); isa [ who worked for the Military and
the Presidential Guard. We went to England to get married so that my family
could all be there, which was very important to me. We had a nice wedding in
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England in December 1985, and then went back to continue living and working
in America.
. We had three children, two boys and a girl.
our two boys were young. After that, he had a good job working for Tyson Foods
in America.
. I eventually moved back to England with my family in 2005, which was due to
my eldest son needing to have treatment for! : Upon returning to
England, I got a job at British Aerospace on an assembly line before becoming
a Sub-Postmistress in 2007.
. Tragically, our daughter passed away in November 2011 from
jis the youngest of our two boys and, following graduating in England with
a degree in Agriculture, he took out a loan in his name in 2012 to purchase a
farm in America for us all to run as a family business. He was only 22 years
old at the time. moved back to America in 2012 to start running
the farm, but I was not allowed back into the country at that time.
. I moved back to America in 2013 and have not been back to England since
2018 as I find it quite traumatic due to everything that happened involving the
Post Office since 2008, and because I am always pulled aside by officials upon
re-entering America, taken to an interrogation room, and questioned about my
conviction. There is always a risk they will not allow me back into the country.
. My parents and close family still live in Preston and, sadly, we are no longer
close following my conviction.
. I am now 57 years of age and live with my husband and our son,'g
America, where we still run the farm.
j now and married with two
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children, but we still all live together in the same house on the farm. Our older
son lives 6 miles from where we live, and has three kids who we see regularly.
POST OFFICE HISTORY
9. I started as Sub-Postmistress of Broughton Post Office on 7 December 2006.
10.We lived in a flat above the post office initially and we then expanded and
refurbished the business in 2007.
CRIMINAL ALLEGATIONS AND ANY PROCEEDINGS/CONVICTION
11. As a result of our expansion, we had a second Horizon system installed. This
is when our problems started. It was confusing when shortfalls started
increasing. I started up the second Horizon system and it showed a shortfall in
foreign currency of 2000 Euros. This was never resolved, and I was made by
my Manager to pay the shortfall.
12.The foreign currency on Horizon was never right since then. I asked my
Manager for further training, but she refused. This was very infuriating. When I
contacted the helpline, I found it to be unhelpful, as they could help with minor
queries but not shortfalls. The staff did not seem to know what they were doing.
I would sometimes telephone up to five times a week in relation to shortfalls.
The usual response was that “it will work itself out”. It never did, and I felt very
alone in experiencing these problems. I always told my Manager when I saw
her that my balancing hadn’t worked.
13.1 was aware I was expected to pay for shortfalls in the Post Office, but I found I
was increasingly experiencing more and higher shortfalls, to the point where
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we could no longer afford to pay them. I felt under pressure from the Post Office
to keep the branch open.
14.At the end of September 2008, Horizon was showing that I had an excess cash
amount of £50,000. I was unaware of this until 1st October 2008, when my
Manager came into my office and told me that I should have had a notice that
she needed to collect this sum from me. I then saw a message which she
showed me on a screen I had never been aware of before. I was completely
confused by this.
15.My Manager called the Auditors, who came within two hours. I was immediately
suspended. The Auditors closed the Post Office and took away the keys. They
put a sign on the Post Office door saying “Closed for Auditing Purposes”. They
told me they would figure out what was going on. I was relieved at first and
thought they would help, but then the mood quickly changed. The Post Office’s
investigator attended my home on the second day of the Auditor's visit. He
searched our property. They went into my bedroom and went through all my
drawers.
16.I attended an interview with the Post Office during October 2008. I took my
friend who also ran a Post Office with me. I raised the issues I had been having
with Horizon at the interview. I was scared and I indicated that I would take a
loan out to pay for the shortfall. After a further meeting in November 2008, my
contract was terminated a month later. I was devastated. Following this,
proceeds of crime proceedings were issued, which I believe was in early 2009.
17.The Post Office appointed a relief Sub-Postmaster. My assistant, Katie, was
appointed as the manager. After the relief Sub-Postmaster took over, the
shortfalls continued. My assistant was informed she would have to make good
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any shortfalls. She was signed off sick with anxiety and depression, as she
could not afford to pay the shortfalls. She told me that she considered suicide.
I felt so upset this had happened. The relief Sub-Postmaster even resigned
from his position. As a result, the Post Office closed.
18. The first time I became aware that there would be criminal proceedings against
me was when I got a telephone call from the local Police Constable, John, who
was at the Police Station directly across from my shop. He said “Jackie, I’ve
had a letter from the Post Office and they want me to come across and arrest
you”. John knew me well as he used to come into the shop every day, and he
was very kind to me. He asked me to go over to the Police Station for a cup of
coffee and discuss what had been going on. He could not believe it when I told
him everything. He never officially arrested me, but took me for fingerprinting
and did not allow any of the other officers to handcuff me or put me in a locked
cell.
19.1 initially attended the Magistrates Court where I pleaded not guilty. However,
on the advice of my Barrister, I subsequently pleaded “guilty without admission”
at the Crown Court, in an attempt to avoid a custodial sentence. I was advised
that I was looking at 4 years imprisonment if I did not plead guilty, and I felt that
I could not risk being away from my family for that long. Despite my plea, I was
still sentenced to 18 months imprisonment.
20. The Post Office also pursued a Proceeds of Crime Act application against me.
THE HUMAN IMPACT
21.The human impact which the failings of the Horizon IT System have had and
continue to have upon me and my family are set out in the remainder of this
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statement. The section headings follow the particular questions posed by the
Inquiry.
WHAT WERE THE CONSEQUENCES OF BEING REQUIRED TO MAKE GOOD
APPARENT SHORTFALLS SHOWN BY THE HORIZON IT SYSTEM?
22. Following the audit in 2018, I was asked to repay £93,947.93.
23.Although I did pay numerous shortfalls showing on the Horizon system prior to
that between 2006 and 2008, I was unable to pay the £93,947.93. I did ask my
parents and sister to lend me the money but they were not willing to do so.
24.1 immediately lost my income from the Post Office upon being suspended, but
kept the shop running until 2009. My husband and three children all worked
in the shop so we lost our livelihood when that eventually closed. I had to
declare myself bankrupt, as did my husband. As a result, we were blacklisted
for credit and eventually had to rely on our son!GRO'to take out a loan to start
a new family business in America.
WHAT WERE THE COSTS OF MAKING GOOD ALLEGED SHORTFALLS SHOWN
BY HORIZON?
25.Before the refurbishment at our branch was completed in October 2007, I would
experience small shortfalls which I would pay.
26. As previously stated, when the new Horizon System was installed, there was
an alleged shortfall of foreign currency which amounted to 2000 Euros. I
continued to pay shortfalls but as they became more frequent and increased in
amount, I found myself unable to do so. When i was asked to repay £93,947.93
following the audit, I was forced into bankruptcy.
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27.The Post Office pursued a Proceeds of Crime Act application against me. Due
to bankruptcy, I had to pay £1 to settle the debt. I lost my car during this process.
HOW WERE YOU AFFECTED WHEN ALLEGED TO BE RESPONSIBLE FOR
SHORTFALLS OR DISCREPANCIES SHOWN BY THE HORIZON IT SYSTEM?
28.At first I felt relieved when the Auditors came and I was hopeful that they would
be able to sort out my shortfalls. The Auditors were at the Post Office for two
days. They said to me “What have you done with the money?”, “What tree have
you squirrelled it away in?”. I kept saying to them “You don’t understand: there
is not any money missing.”, but they said I was missing foreign currency and
stamps.
29.1 could not believe it, but I still thought they would get to the bottom of it
eventually as I knew I had done nothing wrong. The figures were so ridiculous
and I thought they would find the reason for it and it would all be sorted out.
30. They then told me that a total shortfall of £93,000 had been identified. I couldn't
believe the amount of the shortfall. I still thought even then that the Post Office
would investigate, find the error in the system, and reinstate me.
31.When our property was searched, it was horrible. I felt really shocked by this.
I overheard the Auditors saying “Is she cooperating? Is she answering
questions?”. I went up to them and said I was more than happy to answer any
questions they had, as I had nothing to hide.
32. After the relief Sub-Postmaster was appointed and I was in Court in 2009, I felt
very embarrassed once the customers found out what was happening.
33.1 knew it was serious when I was told I was terminated. At first it had sounded
like I was going to be reinstated in a couple of weeks.
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34.1 feel that my health was probably affected at that stage because I was not
sleeping, I was unable to eat, and I felt depressed and constantly nervous about
what was happening.
WHAT WERE THE CONSEQUENCES OF BEING HELD RESPONSIBLE FOR
SHORTFALLS AND DISCREPANCIES SHOWN BY THE HORIZON IT SYSTEM?
35.1 was convicted of theft and false accounting.
36.1 lost my income from the Post Office as soon as I was suspended and then our
income stopped completely when we closed the shop, which we kept open until
August 2009. My husband had worked full time in the shop until then.
WHAT EFFECT DID IT HAVE TO BE ACCUSED OF COMMITTING CRIMINAL
OFFENCES AS A RESULT OF SHORTFALLS AND DISCREPANCIES SHOWN BY
THE HORIZON IT SYSTEM?
37.It was a very stressful period, especially as I became aware I was facing a
prison sentence of around 4 years if I could not repay the money. I wanted to
instruct a forensic accountant to prove my innocence, but I was unable to afford
the fees for this.
38.Whilst waiting for my case to go to the Crown Court, I experienced severe
stress, anger, and problems sleeping. I felt as though everything my husband
and I had worked so hard to achieve over the years was being lost.
39. During the time of the proceedings, I started to learn of other Sub-Postmasters
who were having issues, and I could not understand why the investigator had
told me I was the only one who was having problems with Horizon. It was such
a stressful time prior to my court appearance. I got very worked up about the
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prospect of going to prison. It was the anxiety of not knowing what was going
to happen to me.
40.In between my first hearing and sentencing, it was our wedding anniversary.
We went to London but I felt I could not enjoy it, so we returned early. I felt like
I did not want to do anything nice. I was unable to believe it was happening.
4
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.I was very scared during the criminal proceedings about what was going to
happen to me and whether I would go to Prison. I was terrified about this. The
Post Office just seemed focused on getting a conviction and did not agree to a
forensic accountant being instructed. I attended a trial of another Sub-
Postmistress and she had pleaded not guilty. She was found guilty and
sentenced to imprisonment. I was deeply disturbed by this experience and
decided I wanted the whole experience over and done with, so I pleaded guilty
to theft and false accounting without any admission.
42.I would say that the whole situation significantly impacted my mental health,
and I did even consider suicide at one stage. I was prescribed medication by
my GP. I am better than I was but I feel I have still not fully recovered and find
it very difficult to talk about the situation. I still feel as though I am living in limbo.
I want the case to be finalised so we can start to enjoy our lives.
43.I have been diagnosed as having suffered with an adjustment disorder in the
form of mixed anxiety and depression prior to sentencing. I have been told there
is evidence that the ongoing proceedings have caused some low-grade anxiety.
It has been recommended that I undergo treatment in the form of Cognitive
Behavioural Therapy, which I have been undertaking.
44.The majority of the media coverage happened after I was convicted, but a
photograph of me was taken on the way out of the Magistrate’s Court. This is
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how all the adverse publicity started and it escalated from there. My son
went out and bought all the papers with headlines about me and threw them in
the trash.
WHAT WERE THE CONSEQUENCES OF BEING CONVICTED OF A CRIMINAL
OFFENCE AS A RESULT OF SHORTFALLS AND DISCREPANCIES SHOWN BY
THE HORIZON IT SYSTEM?
45.After my contract was terminated, I realised I was in no position to pay the
shortfall and I declared myself bankrupt. It was so upsetting. The Trustee in
Bankruptcy took over the Shop but not our flat as there was no equity in it.
46.The Post Office started Proceeds of Crime Act proceedings to recover the
shortfall. The Post Office took my car away and I never saw it again. After a
second hearing, the Post Office agreed that I could pay off my debt to them for
£1 as I was bankrupt. It was so humiliating, I had to take a £1 coin to my solicitor
who then sent it to the Post Office to pay the debt.
47.1n January 2011, I was sentenced to 18 months imprisonment. I was so shocked
and couldn't believe it. The Judge told me I had breached the community’s and
the Post Office’s trust.
48. This was very upsetting knowing I had done nothing wrong. I didn't even take
anything with me as I was not told to pack a bag before attending Court. I was
taken to Styal Prison in Manchester. The prison van had what were like kennels
inside. It was an open prison and I stayed there for 21 days.
49.Once the door was locked, I burst into tears and sobbed. Being taken away
from my family was the worst form of punishment. I never felt so lonely in my
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life. I had no idea what to expect the next day. I was terrified as I was not used
to fights. I tried to be brave, but I was petrified.
50.1 tried to keep myself busy and tried to find a job. I felt I had to be strong for my
husband and children. I was transferred to Durham for a few days in March
2011, and then Askham Grange which was also an open prison, where I stayed
until June 2011. I tried to find work in the garden and keep myself busy. I just
focused on getting through it. I was one of the oldest people in the prison and
the other prisoners wanted to know why I was there.
51.It was extremely distressing. It was awful. There were a lot of young people who
were in Prison as a result of drug offences, and I was there knowing I had not
done anything wrong.
52.When I was then transferred to Durham prison for a few nights, this was very
hard for me as it coincided with my daughter's 18th birthday and I was unable
to even telephone her to say happy birthday.
53.1 had to go back to Styal Prison again for a few nights when I attended my
proceeds of crime hearing in Preston. This was very difficult for me as I was
locked in a cell and the Officers were horrible to me. I lost a lot of weight over
that weekend. I was in there with violent offenders and I saw fights.
54.1 was in prison for four and a half months. I then spent another four and a half
months on curfew with a tag. I was then on Probation for the following nine
months.
55.1 had a difficulty when we decided to go back to America. My Green Card
expired so I had to apply for another, and I was shocked to find out my
application was initially refused because of my conviction. The US Embassy
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allowed my second application but only if I travelled to America within a week.
I packed up and then travelled as quickly as I could.
56. The situation has impacted me in a financial way. I would have continued to run
the Post Office until retirement. My children would have taken over the
business, and we would have purchased another business. Our plans were
destroyed.
WHAT WERE YOUR FINANCIAL LOSSES CAUSED BY ACTION TAKEN AGAINST
YOU IN RELIANCE UPON HORIZON DATA?
57.1 lost my income from the Post Office as a result of my suspension. My husband
and three children also worked in the shop and consequently lost their income.
58.Due to bankruptcy, my husband and I were unable to obtain credit. As a
consequence, my son had to take out a loan to enable us to have a family
business in the USA.
WHAT EFFECT DID THESE ISSUES HAVE UPON YOUR RELATIONSHIPS WITH
YOUR FAMILY, FRIENDS, COLLEAGUES AND LOCAL COMMUNITY?
59.My husband had a very tough year after we decided to close the shop. He had
to file for bankruptcy as well. When we closed the shop, we didn’t take any of
the stock. It just got to a point where I was sick of dealing with it.
60.1 felt like everyone in Preston and Lancashire knew. I wanted to stay at home
all the time and not see anyone. I stayed in bed longer, which I had not
previously done. I didn't want to go outside when my husband suggested we go
for a walk. My husband did the shopping, I went with him but I spent my time
worrying about seeing someone I knew. This was hard on my husband, and it
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reached a stage where he had had enough and was almost ready to fly back to
the States without me.
61.My husband came to all of the Post Office interviews with me, with the exception
of the first one which he was not allowed to attend. The interviewees did not
seem to care about our circumstances or want to listen to what I had to say.
62.The issues have placed significant strain on my family. We eventually felt
compelled to move our lives to America because of the situation with the Post
Office. I feel that my husband bore the brunt of my anxious state. I worried about
my husband’s stress. We didn't talk to the children about what was happening.
Once I was sentenced, my daughter and my husband suffered.
heartbroken that I couldn’t telephone her to wish her a happy birthday.
64. My first grandchild was born whilst I was in prison and he has asked me if I was
there at the hospital after he was born. I had to say that I wasn’t there, but I will
never tell him why.
65.My son, I¢ } turned 21 the day before I came out of prison.
66.1 feel that going to prison robbed me and my family of so many special moments
that should have been happy family occasions.
67.When I came out of prison on probation, I was so relieved to get it over with,
but I still had to wear an electronic tag.
68.When my daughter died, I didn’t tell my Probation Officer. I was so upset that I
missed out on her last birthday and on spending precious time with her. I feel
my grieving process f
as affected by all the ongoing legal issues,
which are still ongoing to this day. I didn’t have an ‘obituary’ written because I
was too embarrassed about my situation; my daughter should have had one
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and upon reflection I am really sorry that I didn’t have one for her, all due to my
situation.
69.I have not told anyone in America about my history. I don’t want to be judged
as I was in England.
70.I don’t talk to anybody else except my husband and my son.
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.My relationship with my mum, dad and sister has never been the same and is
now very strained. When the Post Office asked me to pay the shortfall, my
parents or sister could have easily written me a cheque but they declined to do
so despite knowing that this could mean that I went to prison. Things are
awkward between us now and they occasionally text me, but hardly ever
telephone. They have never apologised to me. My dad, who is now 80, does
not know how to talk to me about it. He did send me a text to say he had heard
the good news and was glad my conviction had been overturned. He hasn’t
asked me anything about it.
72. I am still in bankruptcy. My husband came out of bankruptcy last year
73.I lost my reputation in the area where we lived. There were newspaper articles
which reported on the criminal proceedings and conviction. There were front
page headlines in the Lancashire Evening Post.
PLEASE DESCRIBE THE DIRECT AND INDIRECT EFFECT WHICH THESE
ISSUES HAD UPON THE MEMBERS OF YOUR FAMILY?
74.1 think overall it was harder on my family than me as they were left to deal with
everything whilst I was in prison.
75.My husband and children all suffered embarrassment and stress when I was
accused and then sent to prison. My daughter dropped out of college after a
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teacher pulled her aside and said she had heard her mum was in prison; my
husband agreed she didn’t need to go back to face questions like that. It was
an incredibly difficult and traumatic time for the whole family.
76. Whilst I was in prison, my husband and son went to the pub for a drink.
Everyone stopped and stared at them and they felt that they should leave.
77.My son
(ook on a huge burden at a young age in taking on the loan for
the farm in his name. My husband and I would have helped him more
financially at that time had it not been for everything that happened
78.I honestly don’t know if my family will ever be the same again; I know I certainly
won't be.
CONCLUDING REMARKS
79. The biggest effect upon me of what happened is that it has taken my confidence
away. I have always been confident in what I do and what I believe, but I have
become isolated and withdrawn because of what happened. I still feel ashamed
because I don’t tell anyone about it, and so I always feel like I have a guilty
secret.
80. I have never suffered from anxiety or depression before working for the Post
Office but what happened changed me. I have a passport photo which was
taken in 2017 and I looked so stressed.
81.Wearing the electronic tag on my ankle for a significant length of time has left a
lasting impact on me, as I always feel I need to be home before 8pm and
become anxious when it gets near that time. I still have problems sleeping and
keep waking up during the night.
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82.I have been talking with a psychologist which has really helped and have just
signed up for another 20 sessions, which she told me is mainly needed because
of my isolation due to the accusations and criminal proceedings.
83. I only recently asked my son to tell my daughter-in-law who lives with us
because I didn’t want to have to feel I was hiding something from her. She is
the only person in America who knows what happened and I will never tell
anyone else.
84.1 still feel really angry some days about what happened, but luckily I don’t see
any of the English media that is coming out now which I am glad about, as I
would like to try to put it behind me.
85. The thought of going back to England makes me feel sick because every time
I have come back to the States I have been taken into an interrogation room
because my conviction is attached to my passport.
86.The impact on my family has been huge, and I am conscious that my
involvement with the Post Office caused the people I love to suffer.
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Statement Of Truth
I believe that the facts stated in this witness statement are true.
Signed:
Print Full Date of signature: Jan 14, 2022
Name: JACQUELINE MCDONALD.
FILE REFERENCE,
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