Unexplained losses at Post Office - Fault of accounting system?

Tuesday 15th January, 2013

After several years of continued pressure from campaign groups about their accounting system, the Post Office has been forced into an investigation of its computer system. The system has been named in a number of false accounting cases by sub-postmasters, some of which resulting in a custodial sentence. At least one case involving a long-standing member of staff in his 60s.

Despite numerous complaints, the Post Office has consistently stated that there is no fault with the Horizon system. But postmasters have claimed that gliches with the technology could be generating unexplained losses. In fact 85 sub-postmasters have sought legal advice in relation to situations arrising from the accounting software. Some Post Offices have been forced to close, affecting livelihoods and local communities.

However, after pressure from MPs representing those accused with fraud, and other pressure groups, the Post Office is now prepared to look closely at the system to see if there is a problem. It has asked that anyone with information should come forward.

Alan Bates, chairman of the Justice for Sub-postmasters Alliance (JFSA), said;

“One way or another they do seem to want to get to the bottom of all this, regardless of what is found. I have been very encouraged with the new Post Office attitude and this has been reflected in the agreement we all signed off on, as it not only covers sub-postmasters but also Post Office staff who deal with processing the data and contractors and agency staff working on Horizon elsewhere. This is just the start of the inquiry and early days yet and we’ll have to see where the next few months lead.”

"We would also like some of the developers that worked on the system in the early days to come forward," said Bates. The system was developed by Fujitsu.

The question now is, if the system is to blame - will the Post Office have to pay any sort of compensation - and if so - how will it compensate for time spent in prison?