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Witness Name: Kemi Badenoch
Statement No.: WITN11480100
Dated: 26 September 2024
POST OFFICE HORIZON IT INQUIRY
FIRST WITNESS STATEMENT OF RT. HON KEMI BADENOCH MP
I, Kemi Badenoch, will say as follows.
Introduction
1. I make this statement in response to the Inquiry's request for evidence dated 22 July 2024
(‘the Rule 9 request”). I have prepared it with the support of the Government Legal
Department and counsel. I served as the Secretary of State for Business and Trade at the
Department for Business and Trade (“DBT” or “the Department”) from 7 February 2023 until
5 July 2024.
2. Ihave been asked by the Inquiry to provide my written evidence in two statements. This is
the first. It addresses the dismissal of Henry Staunton as the Post Office Chair.
Background
3. I hold a master’s degree in engineering and after completing my studies in 2003 I started
my career at the CGI Group working as a software engineer. I then worked as a systems
analyst at RBS before moving on in 2006 to work at Coutts as an Associate Director. I left
Coutts in 2013 and took up a position as Digital Director at The Spectator. Whilst working I
obtained an undergraduate degree in law.
4. I was elected as Member of Parliament for Saffron Walden in 2017 and re-elected in 2019.
Following boundary changes, I was elected as MP for North West Essex in the 2024
General Election.
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5. From 27 July 2019 until 13 February 2020 I served as Parliamentary Under Secretary of
State at the Department for Education. I was then appointed as the Exchequer Secretary to
HM Treasury on 13 February 2020 and served in this role until 15 September 2021. Whilst
in that role I also served as the Minister of State (Minister for Equalities) in the Cabinet
Office from 14 February 2020 until July 2022.
6. Between 16 September 2021 and 6 September 2022 I served as Minister of State at the
Department for Levelling Up, Housing and Communities.
7. From 6 September 2022 until 7 February 2023, I served as the Secretary of State for
International Trade and President of the Board of Trade. From 25 October 2022 I also
served as Minister for Women and Equalities.
8. I was appointed Secretary of State for Business and Trade on 7 February 2023, and
continued in this post until 4 July 2024. Throughout this time, I remained President of the
Board of Trade and Minister for Women and Equalities.
Henry Staunton’s departure
9. Henry Staunton was appointed as the Chair of Post Office Limited (“POL”) on 2 September
2022 and his tenure began on 1 December 2022. This was prior to my time as Secretary of
State and I was not involved in his appointment.
Concerns regarding Mr Staunton’s conduct
10. On 24 January 2024, I received a written submission dated 23 January 2024 prepared by
UKGI and Departmental officials (BEISO000868 ), in which I was advised of specific
concerns in relation to Mr Staunton’s conduct and his suitability for office. The specific
concerns identified in the submission were:
(1) That he had repeatedly attempted to shut down a whistleblowing investigation into his
conduct.
(2) That he had engaged in aggressive, intimidating and disrespectful behaviour to other
board members and members of the POL executive team.
(3) That he showed continued poor understanding of the public sector aspect of POL’s work
and poor judgement.
(4) That he had disregarded proper governance processes as POL’s Chair, most recently
by announcing the appointment of a new Senior Independent Director for POL without
11.
12.
13.
14.
15.
16.
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following formal consultation with the Board, following Board processes or seeking
shareholder approval as required.
(5) That he had failed to provide constructive support to POL’s CEO.
The submission recommended that I should decide that Mr Staunton could not continue in
his role as Chair and that, if I agreed, I should offer him to opportunity to resign rather than
exercise my power under Article 42(a) of POL’s Articles of Association to remove him.
The submission also informed me that POL’s Board was due to meet on 29 January 2024
and that a decision should be made before that meeting, with a risk that at least one board
member would resign if Mr Staunton remained in post.
The submission was forwarded to my private office (and also to the Minister Kevin
Hollinrake’s private office) by email (BEISO000869), in which it was stated that “The
submission reflects the Permanent Secretary’s view, as well as that of GLD and UKGI
lawyers.”
My private office placed the submission, together with a box note, in my overnight box on
24 January 2024. The box note (BEISO000870) stated that the recommendation to remove
Mr Staunton came from the Senior Independent Director and the RemCo chair, and that the
concerns included allegations of misogyny and racism against Mr Staunton. It also stated
that officials agreed that Mr Staunton’s conduct and judgement made him unsuitable to
continue as Chair, because:
“1) He had not offered the leadership and cultural change the Post Office needs;
2) Has been acting increasingly erratic and disruptive for the business, including
several outbursts in the office and other incidents;
3) Acted in an unacceptable manner by seeking to stop the investigations against
himself.”
The box note stated that “Minister Hollinrake and Perm Sec both recommend removing
him without inviting him to resign”.
I note that the submission, which was addressed to both the Minister and me, states that
“We have previously expressed concerns to you about Henry Staunton’s suitability to be
Chair of the Post Office Board’. Whilst there would have been some mentions of this in
meetings, and I was generally aware that there were some concerns about Mr Staunton
which were being handled by UKGI, I had delegated the issue to the Minister Kevin
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Hollinrake. So far as I recall, I was not aware of the specifics prior to receiving this
submission on 24 January 2024.
27 January 2024 telephone call with Mr Staunton
17.I read and considered the submission (I expect this was overnight on 24-25 January, when
the submission was in my overnight box) and decided — in agreement with Kevin Hollinrake
and the Permanent Secretary — that Mr Staunton should be removed from post without being
given the opportunity to resign. These were clearly very serious concerns, and included
some very serious allegations, and the issue needed to be dealt with seriously.
18. I communicated this decision to my private office officials, and told them that I wanted to
speak to Mr Staunton in order to inform him of my decision.
19. On 26 January 2024, officials asked me when I would like to speak to Mr Staunton,
indicating that this should take place by the end of Monday 29 January at the latest, and
preferably earlier (BEISO000871).
20. I understand that officials made a number of attempts through a number of different
channels to reach Mr Staunton in order to line up a call, but they were unsuccessful.
21. On Saturday 27 January 2024, I was informed that the media had become aware of the
decision to remove Mr Staunton. Pausing there, it is right to record that I was and am very
angry at the fact that my decision leaked to the media. Leaks of this type debilitate
government, and lead to inaccurate reporting making it more difficult to get the truth out.
And clearly this was not the right way for Mr Staunton to learn of my decision; I wanted to
spare him any public embarrassment. (As Mr Staunton described it in our subsequent call,
the leak was “appalling”.)
22. Upon being informed of the leak, I called Mr Staunton as soon as possible and he answered.
We had a brief conversation.
23. I am aware that the call was recorded, and I have asked DBT officials to provide a copy of
the audio recording, though I have been informed that it has not been possible to locate a
copy of the recording prior to my finalising this witness statement. I have made clear that I
would like DBT to do everything it can to find it, and to provide a copy to me and to the
Inquiry if and when they do so.
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24. I have, however, been provided with a copy of a note prepared by my former private
secretary, Annie Leigh (BEISO000931), in which she sets out a verbatim transcript of the
recording after some preamble in which I read from a script prepared for me in advance by
Officials (BEISO000930).
25. I believe that this note formed the basis for an edited minute of our conversation which was
later published (BEISO000872).
26. In summary, I told Mr Staunton that he was being removed as Chair due to the concerns
that had been raised about his conduct and suitability for the role, in line with the 23 January
submission and 24 January box note referred to above.
27. Later the same day, Carl Creswell (Director of Business Resilience at the Department),
wrote to Mr Staunton providing formal notification of my decision to remove him as Chair of
POL with immediate effect (BEISO000866; BEISO000867).
The Times and Sunday Times Articles
28. On Sunday 18 February 2024 — around 3 weeks after his sacking - The Sunday Times
published an article (“the Sunday Times Article”) based on an interview with Mr Staunton
(RLIT0000256). The Sunday Times Article reports that Mr Staunton had made various
serious allegations against the Department and an unnamed “fairly senior person”.
29. On Monday 19 February 2024, the day after the Sunday Times Article was published, I
made a statement to the House of Commons (Post Office Governance and Horizon
Compensation Scheme - Hansard - UK Parliament) responding to the allegations made by
Mr Staunton.
30. I address the specific allegations below, insofar as they pertain to my reasons for sacking
him and our conversation of 27 January.
31. First, Mr Staunton was reported to have alleged that I told him during our call that the reason
I was sacking him was “Well, someone's got to take the rap” for the Horizon scandal, the
suggestion being that my decision to remove him was some sort of sham public relations
exercise. This is completely and utterly false. I never said anything of the sort. To the
contrary, and as the transcript demonstrates (BEIS0000931), I was extremely clear that I
was dismissing him because of the very serious concerns about his conduct and the
importance that I placed on a cultural reboot at POL. (I understand that the complaints
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against him were later substantially upheld.) Given the interview took place so shortly after
our conversation, I can only conclude that Mr Staunton’s allegation was intentionally
dishonest — being designed either to protect the reputation that he told me he was “jealous”
of, or to cause embarrassment to the Government.
32. The Sunday Times Article also stated that “The trigger for Staunton’s ousting was a row
over the appointment of a new senior independent director. The government wanted a
Whitehall insider but the Post Office board voted for Andrew Darfoor, a financial services
veteran who was already a director. “That was a big part of it,” Staunton said. “I feel that I
was acting as the servant of the board, and I wouldn't change one jot of it. There was
frustration, ‘He’s too postmaster-centric and he doesn't do what we tell him’”.
33. Assuming it fairly reflects what Mr Staunton told the Sunday Times, this was a dishonest
account of what I told Mr Staunton were the reasons for his dismissal, and it reinforces my
view that he was not fit to serve as Chair of the Post Office and that we were right to sack
him. The concern, shared with officials, the Permanent Secretary and the Minister, was
one of governance. Contrary to the assertion in the Sunday Times Article, the Post Office
board had not voted for Andrew Darfoor as new Senior Independent Director — indeed, the
concern was that Mr Staunton had bypassed the board, failed to obtain the Government's
agreement as shareholder and unilaterally announced Mr Darfoor's appointment. The issue
was not the identity of the Senior Independent Director; the issue was Mr Staunton’s
disregard for proper governance, in circumstances where improved governance was at the
heart of our plans to improve the Post Office.
34. As I stated in the House of Commons (RLIT0000343):
“Mr Staunton claims that I told him that “someone’s got to take the rap” for the Horizon
scandal, and that was the reason for his dismissal. That was not the reason at all. I
dismissed him because there were serious concerns about his behaviour as chair,
including those raised by other directors on the board. My Department found significant
governance issues. For example, a public appointment process was under way for a new
senior independent director to the Post Office board, but Mr Staunton apparently wanted
to bypass it and appoint someone from the board without due process. He failed to
properly consult the Post Office board on the proposal; he failed to hold the required
nominations committee; and, most importantly, he failed to consult the Government, as
a shareholder, which the company was required to do. I know that hon. Members will
agree with me that such a cavalier approach to governance was the last thing we needed
in the Post Office, given its historical failings.
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I should also inform the House that while Mr Staunton was in post, a formal investigation
was launched into allegations made regarding his conduct, including serious matters
such as bullying. Concerns were brought to my Department's attention about Mr
Staunton’s willingness to co-operate with that investigation.”
35. Second, Mr Staunton alleged that I failed to apologise for the fact that he first learned that
he was to be sacked via the media. This, too, is untrue. Indeed, as the transcript of the call
records (BEIS0000931), I apologised for and stated that I was very angry at the leak, and
agreed that “It is appalling”. Again, if he did say what was reported in the Sunday Times
Article, I can only conclude it was a deliberate lie.
36. As I stated to the House of Commons (RLIT0000343):
“Mr Staunton alleges that I refused to apologise to him after he learned of his dismissal
from Sky News. That was not the case. In the call he referenced, I made it abundantly
clear that I disapproved of the media breaking any aspect of the story. Out of respect for
Henry Staunton’s reputation, I went to great pains to make my concerns about his
conduct private. In fact, in my interviews with the press, I repeatedly said that I refuse to
carry out HR in public. That is why it is so disappointing that he has chosen to spread a
series of falsehoods, provide made-up anecdotes to journalists and leak discussions held
in confidence. All that merely confirms in my mind that I made the correct decision in
dismissing him.”
37. In the Sunday Times Article, Mr Staunton was reported as saying that when he was first
appointed, he was told by a “relatively senior person” within the Government to stall
compensation payments to SPMs so as to “limp into the election”. I was not in office at the
time and cannot speak first hand to this allegation. However, there was nothing that I saw
when I came in to post or since that would lead me to believe it was true.
38. As I stated in the House of Commons:
“Finally, Mr Staunton claims that when he was first appointed as chair of the Post Office,
he was told by a senior civil servant to stall on paying compensation. There is no
evidence whatsoever that that is true. In fact, on becoming Post Office chair, Mr Staunton
received a letter from the permanent secretary of the Department for Business, Energy
and Industrial Strategy, Sarah Munby, on 9 December 2022, welcoming him to his role
and making it crystal clear that successfully reaching settlements with victims of the Post
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Office scandal should be one of his highest priorities. That letter is in the public domain.
The words are there in black and white, and copies of the correspondence will be placed
in the Libraries of both Houses.”
39. On Wednesday 21 February 2024, The Times published a further article (“the Times
Article”), said to be based on a file note of a meeting on 5 January 2023 between Mr
Staunton and Sarah Munby, then the Permanent Secretary at the Department for Business,
Energy and Industrial Strategy, and which Mr Staunton appeared to claim was when he was
told to stall compensation payments (RLIT0000345).
40. I understand that a meeting took place between Ms Munby and Mr Staunton on 5 January
2023, shortly after Mr Staunton took up his post, and followed a letter sent by Ms Munby to
Mr Staunton on 9 December 2022 congratulating him on his appointment and setting out
the Department's key strategic priorities for POL over the coming year. I note that one of
the three key objectives set out in that letter was “engaging positively with the Post Office
Horizon IT Inquiry and implementing change, including resolving historical litigation issues,
successfully delivering the Strategic Platform Modernisation Programme (SPMP), and
reaching settlements with claimants” (BEIS0000621; BEISO000607). I shared these
objectives throughout my time in office.
41. Ms Munby wrote to me on 21 February 2024 following the publication of the Times Article
(RLIT0000355). She provided me with her response to the allegations made in the two
articles. That correspondence was made public (Response to claims on the governance of
Post Office Limited - GOV). I have no reason to doubt the truth of what she said in her
letter. Indeed, bearing in mind the dishonesty Mr Staunton has exhibited in his account of
my conversation with him, I have little doubt that his claims about what she said to him are
also false.
42. The Times Article also refers to my 19 February 2024 statement to the House, and asserts
that “the discovery of the January 5 memo” referring to Mr Staunton’s contemporaneous
note of his meeting with Ms Munby on 5 January 2023 (BEISO0000752; RLIT0000254) “now
raises serious questions over the accuracy of Badenoch’s denial and her decision to brand
Staunton a liar’. I simply do not understand the logic of this statement. I told Henry
Staunton the reasons why I was firing him during our phone call. These are recorded in the
transcript, and reflect the submission and box note I received. They were entirely good and
sensible reasons to justify his dismissal. Mr Staunton then went to the Sunday Times and
publicly lied about the reasons I had given him for his dismissal. The contents of a note of
a meeting which took place over a year earlier, in which I was not involved, which do not
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record any suggestion that (ringfenced) compensation payments should be delayed, and
which are consistent with Ms Munby’s letter of 21 February 2024, do not in any way
undermine my statement to the House of Commons on 19 February 2024. I stand by what
I said in that statement.
Select Committee proceedings
43. On 22 February 2024, I wrote to Liam Byrne MP, Chair of the Business and Trade Select
Committee, in which I responded to Mr Staunton’s allegations (RLIT0000344 ). I enclosed
with that letter a snippet of the Sunday Times Article (RLIT0000371,RLIT0000372,
RLIT0000373), a copy of Sarah Munby’s letter to me dated 21 February 2024 (Sarah Munby
Letter To Business Secretary Regarding Post Office Governance 21 February), and a
redacted copy of the official note of the meeting between Sarah Munby and Henry Staunton
on 5 January 2023 (BEIS0000917).
44. I stand by what I said in that letter. Mr Staunton’s allegations in relation to my conversation
with him and the reasons for his departure were false. Our conversation was as recorded
in the transcript.
Statement of truth
I believe the content of this statement to be true.
Dated: 26th September 2024
Index to First Witness Statement of Kemi Badenoch
No
URN
Document Description
Control Number
BEISO000868
Written submission from Lorna Gratton to Minister
Hollinrake and Secretary of State re: For Decision -
Henry Staunton's suitability to be Chair of POL
BEISO000868
BEISO000869
Email from Lorna Gratton to Minister Hollinrake and
Kemi Badenoch re: Post Office Chair - urgent advice
BEIS0000869
BEIS0000870
Box Bote - Letter for HMT re Liberty Steel (DBT
Report: Business Sectors (3)
BEIS0000870
BEIS0000871
Box Note: Housekeeping (9)
BEISO000871
BEIS0000931
Transcript of conversation between Secretary of
State and Henry Staunton
BEIS0000931
BEIS0000930
Sat - Post Office Chair Call
BEIS0000930
BEIS0000872
Note of call between Secretary of State for Business
and Trade (SoS) and Henry Staunton
BEIS0000872
BEISOO00866
Email from Car! Creswell to Henry Staunton re: Letter
for Henry Staunton on behalf of Secretary of State
BEISO000866
BEISO000867
Letter from Carl Creswell to Henry Staunton re:
Termination of Henry Staunton as Non-Executive
Chait of POL
BEIS0000867
10
RLITO000256
The Sunday Times Article: Post Office boss: I was
told to stall compensation to help Tories
RLITO000256
11
RLITO000343
Post Office Governance and Horizon Compensation
Schemes - Volume 745: debated on Monday 19
February 2024
RLIT0000343
12
RLIT0000345
The Times Article - Post Office boss was told ‘don't
rip off the band aid’ on finances - Oliver Shah
21/02/2024
RLIT0000345
13
BEIS0000621
Email thread between UK Government Investments
and Department Of Business, Energy and Industrial
strategy - "RE: OS COMMERCIAL: Perm Sec letter to
new POL Chair’
VIS00014236
14
BEISO000607
Letter from Ms Sarah Munby to Mr Henry Staunton re
Strategic priorities that BEIS would like Post Office to
focus on
VIS00014222
15
RLITO000355
Response to claims on the governance of Post Office
Limited, gov.uk webpage
RLITO000355
16
BEISO000752
Email from Rebecca Stockbridge to Brooks-White
and Ed Baird re: FW: [Briefing Request - midday
Friday 23/12] RE: Attached Letter from Henry
Staunton, Chairman.
VIS00014367
17
RLITO000254
email from Henry Staunton to Nick Read re : Henry
Staunton's Note of Meeting with Sarah Munby on 5
Jan 2023
RLITO000254
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18 RLIT0000344 I Letter from RT Hon Kemi Badenoch MP to RT Hon RLIT0000344
Liam Byrne MP re: Post Office Chair Allegations
19 RLIT0000371 I Article re Post Office boss told: 'Stall payouts so RLIT0000371
Tories can limp into election’
20 RLIT0000372 I Article re ‘I'd only been at the Post Office since 2022. I RLIT0000372
But Badenoch told me: Someone must take the rap’
21 RLIT0000272 I Horizon Compensation Advisory Board. Report of RLIT0000272
eleventh meeting held on 22 February 2024
22 BEIS0000917 I Email from Permanent Secretaries to David BEIS0000917
Bickerton, Carl Crewell, Roshana Arasaratnam and
others re: [Briefing Request - midday Friday 23/12]
RE: Attached Letter from Henry Staunton Chairman
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