The Post Office scandal: What is it and why is Paula Vennells’ evidence so key?

More than 700 subpostmasters were prosecuted by the Post Office and handed criminal convictions between 1999 and 2015.

More than 700 subpostmasters were prosecuted by the Post Office and handed criminal convictions between 1999 and 2015 (Aaron Chown/PA) (PA Wire)

Former Post Office boss Paula Vennells is accused of overseeing what has been described as the most widespread miscarriage of justice in UK history.

The scandal came back into public consciousness at the start of the year following ITV’s four-part drama Mr Bates Vs The Post Office.

Ahead of Ms Vennells’ evidence to the probe on Wednesday, the PA news agency looks at what the scandal is all about and why the former chief executive’s evidence is so crucial:

– What is Horizon?

The Horizon IT system is accounting software, owned by Japanese company Fujitsu, which saw accounts automated after subpostmasters entered their sales figures via a touchscreen.

– What problems were being caused by Horizon?

Subpostmasters started experiencing unexplained shortfalls in their accounts and were liable for losses under their contract with the Post Office.

– What did the Post Office do when subpostmasters suffered shortfalls in their accounts?

The Post Office ordered subpostmasters to pay back the money that was lost and they were told they could face prosecution if they did not comply.

– What happened to subpostmasters who experienced shortfalls but could not pay the money back?

More than 700 subpostmasters were prosecuted by the Post Office for allegations such as theft and false accounting – with many sent to prison or bankrupted.

– When were the shortfalls attributed to the faulty computer software rather than subpostmasters?

In December 2019, a High Court judge ruled that Horizon contained a number of “bugs, errors and defects” and there was a “material risk” that shortfalls in Post Office branch accounts were caused by the system.

– Why has the scandal come to light again?

The Post Office Horizon IT scandal has been put in the spotlight again following the release of ITV’s drama Mr Bates Vs The Post Office, starring actor Toby Jones.

– Who is Paula Vennells?

Ms Vennells was the chief executive of the Post Office between 2012 and 2019 and has been accused of covering up the scandal by subpostmasters during her time as the company’s boss.

– What is she likely to be quizzed on at the inquiry?

Ms Vennells is set to give evidence during a phase of the probe which is looking at governance, so she will be questioned on the decisions she made during her time in leadership roles at the Post Office.

She could be quizzed on her knowledge of the ability to remotely access the Horizon system, alleged false evidence given by expert witnesses during Post Office prosecutions, and the behaviour of the company’s investigators and lawyers.

– Why is Ms Vennells’ evidence so crucial?

The majority of Post Office witnesses at the inquiry have not been able to recall much about their time at the company as the scandal unfolded and subpostmasters are hoping Ms Vennells will shed light on what happened under her watch.

The former chief executive could be key to understanding whether or not any Post Office staff might be criminally liable for the wrongful prosecutions and convictions of subpostmasters.

– Has anyone been held criminally responsible for the miscarriage of justice?

The Metropolitan Police said they are looking at “potential fraud offences arising out of these prosecutions”; for example, “monies recovered from subpostmasters as a result of prosecutions or civil actions”.

Two Fujitsu experts, who were witnesses in the trials, are being investigated for perjury and perverting the course of justice – but nobody has been arrested since the inquiry was launched in January 2020.

– What is being done to compensate subpostmasters?

The Government announced those who have had convictions quashed are eligible for £600,000 payouts.

Hundreds are still awaiting full compensation.