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Witness Name: Mr Virendra Bajaj
Statement No.: WITN0O227_01
Exhibits: None
Dated: 07 January 2022
THE POST OFFICE HORIZON INQUIRY
FIRST WITNESS STATEMENT OF MR VIRENDRA BAJAJ
I, MR VIRENDRA BAJAJ, WILL STATE as follows:
INTRODUCTION
1. I am grateful to the Chair to be invited to provide a “human impact” statement,
concerning the consequences to me and my family as a result of the Horizon IT system
and Post Office Limited’s actions toward me and my family. The introductory
paragraphs below provide a brief summary of my background, and to provide context
to the detail of the human impact of the scandal on me and my family.
2. I was born in Glasgow. I am married, for 27 years, and I have one daughter, who is a
primary school teacher.
3. My father was an advocate in India and came to the UK in 1967. He worked in the civil
service. My mother followed my father, and our family moved to London. My father
had a good career in the civil service, however, he wished to go into business for
himself. He decided he would like the family to become involved in being
subpostmasters, because he felt the Post Office was a trusted organisation, and that
work as a subpostmaster would suit the lifestyle he wanted for himself and his family.
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4, My father bought my older brother a post office in Dagenham in Essex, and later
bought a post office for myself in Chelmsford in April 1990. This was always intended
to be a family enterprise.
BACKGROUND PRIOR TO APPOINTMENT AS A SUBPOSTMASTER
5. I studied business studies at college, as it was always intended that I would become a
subpostmaster straight after college.
6. While I was studying at college, I worked in my older brother’s post office to learn the
business, while I studied in preparation for getting my own post office.
163 After leaving college I worked in my brother’s post office for 2 years full time.
8. My father, using his money, money from my brother and a loan, purchased a post
office for me to run in 1990.
9. I was a Subpostmaster of Torquay Road Post Office, 4 Torquay Road, Springfield,
Chelmsford, Essex, CM 1 6NF from April 1990 to 1 June 2006. I resided in linked
residential premises. The Post Office was my home
10. I also operated a general convenience store alongside my post office. I employed my
father and two part time members of staff. It was a typical family run post office.
11. Between 1990 and 1999 we operated a written book keeping system along with an
early computer accounting system. In those 9 — 10 years we never had a serious
discrepancy.
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TRAINING AND SUPPORT ON THE HORIZON SYSTEM
12. In 1999 I had notice from the Post Office that the Horizon IT system was going to be
introduced into post offices. I remember attending a one and a half day training course
provided by the Post Office at the Rivenhall Hotel with around 20 other SPMs. I recall
assistants were given 1 day’s training.
13. At the training day hosted by the Post Office we all had our own computers and the
Post Office trainers showed us how to enter transactions into the Horizon system.
14, The half day training was on balancing. We were never warned that there could be
discrepancies or how to deal with them if they arose.
15. I remember finding the training rushed and quite overwhelming and confusing, I
hoped that it would get easier as we got used to using the new system. I know that
other SPMs at the training felt the same way as we discussed it together. The Post
Office Trainers told us that if there was anything that we didn’t understand we could
call the helpline who would be able to assist. This later proved to be untrue
HORIZON HELPLINE
16. After the introduction of the Horizon system, I contacted the Helpline approximately
four or five times per week, often I made these calls because of unexplained shortfalls
on the system.
1. The support offered by the Horizon helpline was inadequate and did not help to
resolve the issues I was having. The helpline staff seemed to know no more than we
did, as this was a new system for everyone. Therefore, we relied more on the manuals
than on the helpline when we needed assistance with anything on Horizon.
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18. Virtually no support or advice was given and I was just told to speak to Mandy Lawless
(an Area Intervention Manager). When there were problems with balances (shortfalls)
I was told by the helpline staff to simply roll over the system and that it might sort
itself out.
19, Nobody on the helpline ever mentioned that other people were experiencing issues
with Horizon. I only realised this after my father wrote a letter which was published in
the subpostmaster magazine, and other subpostmasters came forward to say they
were having big problems with the Horizon System.
SHORTFALLS
20. In this section, I set out in very brief detail my experience of shortfalls arising from
deficiencies in the Horizon IT System, and Post Office Limited’s actions as a result. This
is only a brief introduction to those matters, in order to provide necessary context for
the explanation of the human impact which follows.
21. Shortfalls occurred often in the Horizon system at my post office. I would estimate
that throughout my time in the branch, I paid (or Post Office deducted) in excess of
£16,259,
22. I ran this same branch for ten years prior to the installation of Horizon, and had no
issues regarding shortfalls during those ten years. I only had problems with shortfalls
after the installation of Horizon.
23. As I have said, my family had also ran another Post Office branch in Dagenham for
several years before the introduction of Horizon, and experienced no difficulties with
shortfalls until the introduction of Horizon.
24, My branch began to suffer from discrepancies in around August 2004, and these
shortfalls continued until March 2006, when I resigned as SPM.
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I reported incidents of shortfalls to the helpline and to Area and Regional managers.
Many of the issues were not satisfactorily resolved giving rise to the shortfalls claimed
by POL or issues were resolved but not explained by Post Office to us.
The issues I experienced included, but are not limited to, the following incidents:
(a) On 18 April 2004 Horizon showed a £20,000 surplus and I had no idea why. I reported
this to POL on the helpline. We never withdrew surplus. The helpline member told us
that they would look into this when we reported it and so we took no action assuming
that Post Office would call us back to explain or rectify. But then on the following
week’s balance the surplus had disappeared. The Post Office never did explain what
this surplus related to or why it had disappeared the following week.
(b) In December 2004, Miss D South, a Post Office Area Manager, told us that £22,000
worth of cheques were missing. This sum multiplied a number of times after we
reported the problem to the helpline. Miss South promised to correct the issue. The
actual figure of £3,800 worth of cheques that had already been received by the
clearing office. Miss South was transferred at the end of the trading period and so no
further action was taken by Post Office. We never found out what actually happened
as we heard nothing further.
(c) On 26 January 2005 Post Office auditors visited my branch and carried out an audit
and recorded a shortfall of £4,320.56. It appeared that this sum included £3,800 which
related to cheques incorrectly stated on Horizon as missing. I told the auditors about
this and nothing was done by Post Office. I have not seen a copy of the audit report. I
paid this shortfall to POL, despite it being. I felt I had no option, as if I did not pay, they
would close my post office.
(d) In the week of 13 July 2005, Mandy Lawless, Area Intervention Manager for Post
Office, attended the branch and noted when we carried out the balance that Horizon
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showed £18,106.18 for cash overflow for the week but on the balance sheet the cash
in pouches figure was £21,395. Mandy Lawless was aware of this discrepancy but took
no action to try and get to the bottom of it. In spite of this £3,530.62 was paid by me
for the shortfall.
(e) Also in the week of 13 July 2005, the philatelic (stamp related) items that we had
recorded as in stock, being items such as collectors stamps and presentation packs,
had been reduced from £1,440.00 from the previous week to £498.98 without any
reason, and therefore Horizon showed a shortfall of £941.52; even though we had not
sold any philatelic items that week. Copies of the accounts were supplied to Mandy
Lawless and subsequently sent to Post Office solicitors. Mandy Lawless reported by
way of note on the log that Horizon was faulty but no further action was taken by Post
Office.
(f) On 21 September 2005 Mandy Lawless telephone me at around 1pm and said that
Fujitsu had been notified about the shortfalls and my complaints but no remedial
action was taken, and I ended up paying £3,001.76 in shortfalls that week.
(g) On 17 November 2005, Horizon showed a shortfall of £2,555.91 for no apparent
reason and I tried to contact Mandy Lawless without success. She never came back to
me and I paid this shortfall.
(h) On 14 December 2005, £345 worth of postage disappeared from Horizon for no reason
since nothing had been remitted to Post Office. There was no action taken by Post
Office to try and get to the bottom of it and I ended up paying this shortfall.
AUDITS AND INVESTIGATIONS
27. First, I would ask the Chairman to note that the discrepancies were not always
shortfalls. In some cases, as with the £20,000 surplus, the system showed errors in my
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favour. However, I would report these to Post Office, and they would simply correct
the system and take the money without any comment. So, it is a fact that Post Office
knew that there were errors and bugs in Horizon at this time, but did nothing about
it.
At least two audits were carried out by the Post Office. One audit took place on 26
January 2005 and found a shortfall of £4,320.56. I have not seen a copy of the report.
I settled this shortfall, although Post Office provided no reasons for the shortfall, and
took no action to investigate why it had occurred. I had to pay, or lose my post office.
The audit which led to my suspension took place on 8 May 2006. Peter Riches, one of
the three Post Office auditors who came that day, led the audit. He found a
discrepancy of £8,798.24. This was made up of a difference in cash figures of £8,640.67
and a difference in stock of £157.57. I was not provided with a copy of the auditor’s
report at the time but have seen it since.
The branch remained closed throughout the audit. At the end of the day Mr Riches
took my safe key and told me that the post office must remain closed, and that I was
not allowed to enter the post office area of the premises. I was shocked. I was given
no explanation, other than that I would receive a letter in due course
I then received a letter dated 9 May 2006 stating that I was suspended from that date.
On both occasions the auditors simply arrived, found that there was a shortfall and
did not offer any help, investigate or provide any explanation as to why this was the
case.
Other audits took place, usually twice per year. Most times they found shortfalls of
£200-£300 which I settled straight away.
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34, At none of these audits did the Post Office provide any evidence of any adequate
investigation. I was simply forced to take their word for the shortfalls and to pay them.
35. I was not provided with access to the computer records so that I could independently
check the Post Office auditors’ findings. It was completely one sided and unfair. I had
no means or opportunity to defend myself and my families’ business.
SUSPENSION AND TERMINATION
36. I was suspended from my position as a subpostmaster on 9 May 2006 following an
audit by the Post Office taking place on 8 May 2006 which found a shortfall of
£8,798.24. I did not work in the branch again and my appointment ended with my
resignation, which took effect on 1 June 2006.
37. I had paid out so much money for the alleged shortfalls that I and my family could no
longer sustain this drain on our resources. Also, I was deeply afraid that if I continued
as a subpostmaster that there would be further shortfalls that would simply ruin the
family.
38. I had put 16 years of my life into this business. My father and brother had invested in
starting it. My wider family had a big interest in the post office. My wife was employed
there. The whole community knew me, and I had status as the local subpostmaster.
However, I had to give all this up, as a result of fear of the Post Office and shortfalls in
the Horizon system.
39. The branch was closed from 8 May 2006. Mr Najmin Jaffer was appointed for a
temporary period from 26 May 2006, as a temporary subpostmaster.
40. I was not allowed into my own post office until a relief subpostmaster was in place.
My wife ran the retail side of the business in the meantime.
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41, My appointment ended when my resignation took effect on 1 June 2006, having
tendered this by way of written notice dated 1 March 2006.
42. The after effects of all of this remain with me to this day. At that time, I was a 37-year-
old man with a good busy business with real prospects. I now, at the age of 52, and
work night shifts as a security guard My life should not have
worked out like this. Horizon and the Post Office are blame for blighting my family’s
prospects.
CIVIL AND CRIMINAL PROCEEDINGS
43. The Post Office did not pursue me for recovery of any alleged shortfalls by civil
proceedings or take criminal action against me.
44, lam sure that this is because I simply felt compelled to pay up and believed that I had
no alternative but to pay the shortfalls, through fear of action being taken against me
by Post Office Ltd.
LOSSES
45. The actions of the Post Office against me had a devastating impact on my and my
family and our finances. As I have said, I estimate that I repaid shortfalls of at least
£16,259.
46. I also lost my income of £1,000 per month.
47. However, Post Office’s actions led directly to the loss of our family business, which
was owned by my father. This was sold in or around September 2006 for £100,000,
which was about £50,000 less than it was worth at the time. This was the same price
as had been paid for the business in 1990.
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48, My family’s reputation was tarnished in light of my suspension and I feel that this had
an impact on the sale price.
49, I was unable to work from when my resignation took effect on 1 June 2006 until April
2007 because of the stress and depression brought on by Post Office’s conduct.
50. I then ran a licensed convenience store for nine years from the same premises. During
this period my earnings were nil, and I relied on working tax credits and child credits.
Had I been able to continue in my role as a subpostmaster I would have received an
average take home salary of £1,000 per month (no doubt rising over time), I estimate
that my loss of earnings during this period were a minimum of £110,000.
51. I now work in security a
52. My family is well-known in the local community and my suspension and the allegations
made against us by the Post Office damaged my reputation.
HUMAN IMPACT
53, Above I have given a summary of my experiences and losses, but I have not given a
proper understanding of the impact the Post Office action against me had on me and
my family.
54, My father bought this post office for me. It was part of our combined families’ plan to
develop a chain of post offices. He and my brother invested all that they had in
purchasing this post office. I studied business at college specifically so that I could
prepare for life as a subpostmaster.
55. As I have said, my father was a legal advocate in India. He was a civil servant in the UK.
He was and is a man of high moral standards. He was a man who was so deeply
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committed to his family and to building a life for his family. He gave everything he had
to his family.
My father is now 90 and is suffering memory loss. I feel deeply aggrieved that even if
I am vindicated that my father will not fully appreciate any accountability that I will
achieve for what happened.
My father will never know or understand that I was not a thief and it was not my fault
that we lost all of the family money and it was not my fault that the business he built
up was lost.
It is hard to explain how awful it is to feel that you have let down your father and
family in this way.
These problems also caused huge tensions within my marriage, as my wife was
naturally deeply concerned about how we would live after we lost the post office.
My daughter was at the local primary school just around the corner from the post
office where we worked and lived. There were constant whispers and rumours about
us after my removal from the post office.
After losing the post office, I became a recluse. I stayed in bed with so many thoughts
going around my mind. I effectively did not leave the house for months, except to go
to the job centre.
When I was experiencing these problems with the Horizon System and with the Post
Office, I started to have bouts of anxiety and depression. I felt like everything was out
of my control and I could not believe that something like this could be happening.
I began to fear Wednesday’s, which we called ‘balance days’. I feared them because I
simply did not know what the Horizon System would show. I would get knots in my
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stomach and feel anxious. My finger would hover over the button on the system,
before I pressed it. When I did press the final balance button, an egg timer symbol
would appear on screen and go around and around on the screen. It was horrible
waiting for it to stop, as I knew that when it did, it could spell disaster for me and my
family.
After my suspension due to the apparent shortages, I lost all the income from the post-
office, shop and rental of the flat upstairs, I was unemployed for 11 months and
received no benefits due to being classed as self-employed.
I felt deeply ashamed. I felt that my reputation had been destroyed. I felt that I had
let down my father, my family and myself.
I was living with my mother and father, my wife and 10-year-old daughter. Losing my
post, job and our family business was incredibly stressful mentally and financially.
My wife was working with me at the post office, so she had to look for another job.
After losing my post, I went to the Job Centre every two weeks to sign on. It was the
first time in my life I had to do this.
My father was using his pension to pay for the mortgage. We had gone from running
a successful family business, which I intended to carry on for a least 25+ years, to
nothing at all due to the horizon system faults. To this day the knock on effects of it
all continue.
The loss of the post office had a huge impact, as the Post-Office was our family
business and the main source of income for all of us. We were all shocked and stunned
at what happened. Our friends were also hugely concerned about our wellbeing.
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71, We are very well known within the local community, and the community was stunned
as we had been running the Post-Office for the last 16 years. We were known to
everyone in the community, and people could not believe that this had happened. I
could not hold my head up in public for years afterwards.
72. alk from my old post office. I have to walk past it often.
When I walk past it I feel sadness, and a deep sense of loss for what could and should
have been. I imagine what life would have been like. As I could and should be still
standing behind the post office counter, with my wife running the shop. Instead, we
lost everything and our lives have not been what they should have been
CONCLUSIONS
73. My life and my families’ life has been devastated by the actions of the Post Office. As
far as Iam aware no one at Post Office has ever been held to account.
74, I can never get back the 15 years that I have lost, or the life I and my family should
have had. I never thought, as a 37-year-old business man, that at 52 I would be getting
up at 1am in the morning to do shift work as a security guard.
75. My mum and dad live with me. I live in a house where I could only afford an interest
only mortgage, because after losing my post office my income has always been so low.
The mortgage ends in 6 years, and I will have no home.
76. The Post Office must be held to account for what they did to my family and the families
of other subpostmasters. They must make good the financial losses we suffered.
However, they must also be held to account in public to explain what they did to us
and others; to explain why they did it, and to be held truly to account for the lives that
they destroyed.
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ram I and other subpostmasters were publicly humiliated and lost everything. The Post
Office, its directors and managers, should feel at least some of the pain that they
caused.
78. They should also openly, publicly and genuinely acknowledge what they did to us, and
to offer me and my family a genuine apology, that they actually mean.
79. Someone senior from the post office should come to my family’s former post office to
stand outside it, to see where our dreams were shattered. That person should look
into my eyes, my wife’s eyes and the eyes of my elderly father and explain to us why
this was done, and to say sorry.
STATEMENT OF TRUTH
I believe the contents. of this statement to be true.
GRO
Dated: 7.1.2022
Mr Virendra Bajaj
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