Post Office investigator denies behaving like ‘Mafia gangster’ over Horizon scandal

Astonishing day of evidence sees fraud investigator forced to deny he ‘collected bounty with threats and lies’ – as Rishi Sunak is warned hundreds more victims could come forward

An investigator who helped falsely convict some of those caught up in the Horizon scandal has denied behaving like a “mafia gangster” to try to collect “bounty” through threats and lies.

Post Office investigator Stephen Bradshaw gave evidence to the official inquiry as shocking new details emerged over how subpostmasters were wrongly convicted of swindling money because of Fujitsu’s faulty IT accounting system.

An official inquiry into the fiasco heard on Thursday how victims were told they could only plead guilty if they did not blame Horizon – a flawed system developed by Fujitsu – for any accounting errors, as Mr Bradshaw was forced to deny claims that he bullied branch managers.

It comes as Rishi Sunak was warned his government may have to stump up more than the £1bn in compensation already set aside, amid warnings hundreds more victims may have fallen through the cracks.

On an extraordinary day of evidence, Mr Bradshaw, who was involved in nine prosecutions:

• Admitted a signed 2012 statement that said he had “full confidence” in Horizon was written by lawyers hired by the organisation
• Claimed he was not “technically minded” and was not equipped to know whether there were bugs or errors in the system
• Insisted investigations had been done correctly – and that there had been no reason to suspect anything wrong
• Maintained he was a “small cog” as he suggested lawyers were to blame for evidence about Horizon flaws not being disclosed
• Admitted it was “probably not” acceptable to accept a guilty plea from a subpostmaster on the basis they did not “blame Horizon”

The inquiry heard a statement by Jacqueline McDonald, who said she was “bullied” by Mr Bradshaw during a probe into her alleged shortfall. She also accused investigators of “behaving like mafia gangsters”.

Ms McDonald pleaded guilty to theft after an audit found there had been a shortfall of over £94,000. She said that in her interview with Mr Bradshaw, she was accused of telling him a “pack of lies”.

Post Office investigator Stephen Bradshaw arrives at public inquiry (PA)

In reponse, Mr Bradshaw said: “I refute the allegation that I am a liar.”

He added: “I also refute the claim that Jacqueline McDonald was bullied … Ms Jacqueline McDonald is also incorrect in stating Post Office investigators behaved like mafia gangsters looking to collect their bounty with the threats and lies.”

But he admitted that it was “probably not” acceptable to offer a plea deal to falsely accused subpostmasters provided they did not blame the software.

The investigator in the case against Katherine McQue was copied into a memo which showed the subpostmistress was told her guilty plea to fraud was acceptable “so long as the defendant stipulated ... there was nothing wrong with Horizon”.

Asked by the inquiry chairman Sir Wyn Williams if it was appropriate for the Post Office to say, “We will accept your plea, but only if you don’t blame Horizon,” Mr Bradshaw said: “Probably not.”

He has also been accused by subpostmistress Rita Threlfall of asking about her eye colour and what jewellery she wore before saying: “Good, so we’ve got a description of you for when they come.”

Mr Bradshaw – employed by the Post Office since 1978 – had earlier told the inquiry he was not “technically minded” enough to know whether there were bugs or errors in the Horizon system.

The investigator said any knowledge of flaws with Fujitsu’s Horizon software had not “cascaded down” to investigators from the IT giant or the Post Office board. “I had no reason to suspect at the time that there was anything wrong with the Horizon system because we’d not been told,” he said.

Toby Jones played campaigning subpostmaster Alan Bates in ITV drama ‘Mr Bates vs The Post Office’ (ITV)

But he admitted that he had been told by colleagues about newspaper articles highlighting problems, and had seen emails discussing potential issues, since 2010.

Questioned over whether his department had been “drenched” in information about Horizon not working, Mr Bradshaw replied: “The information came through, yes.”

He also said a 2012 statement signed by him declaring the Post Office’s “absolute confidence” in the Horizon IT system had been written by law firm Cartwright King.

Rishi Sunak has revealed plan for legislation to overturn convictions (PA/EPA)

It came as No 10 said that the Sunak government “fully intends” to make Fujitsu foot the bill for the scandal if the IT giant is found culpable.

Justice secretary Alex Chalk also said ministers want “proper recompense” for the taxpayer if the inquiry delivers a damning verdict on the firm.

It was announced this week that innocent people embroiled in the fiasco would be “swiftly exonerated and compensated” with new legislation aimed at overturning more than 700 convictions under government plans prompted by the ITV drama “Mr Bates vs The Post Office”.

Those whose convictions are quashed are eligible for a £600,000 compensation payment. There will also be a new upfront payment of £75,000 to those not convicted but still affected – including those who lost money by paying the sums allegedly stolen out of their own pocket.

But No 10 admitted on Thursday that only around one-third of the postmasters forced to shell out huge sums in the debacle will accept the £75,000 offered by the government.

Lawyers and campaigners told The Independent that hundreds of subpostmasters who have yet to make claims may be too “traumatised” to come forward because of mistrust in the government and Post Office.

Terry Wilcox of the Hudgells Solicitors firm representing former subpostmasters said around 2,700 had made compensation claims but many more victims were yet to come forward.

He told The Independent: “We’ve been approached by more than 150 new clients since the ITV drama aired. There could well be hundreds more. There are people who paid the shortfall and disappeared. We just have no idea where the bottom line is.”

Mr Wilcox added that the government needed to provide "adequate compensation", whatever the cost.

Campaigning Tory peer Lord Arbuthnot said there was “no doubt about it at all” that there were more victims.

He added: “I would expect it will be hundreds, but I would be surprised if it was thousands”.

Asked if the £1bn Downing Street today confirmed it had set aside to pay compensation was enough, he said: “It may be or it may not be. But this will cost what it will cost. It is a British debt to the subpostmasters and the UK must pay. And the extent to which it gets it back from Fujitsu is a secondary matter.”

The statutory inquiry, which began in 2021 and is chaired by retired judge Sir Wyn Williams, was established to ensure there is a “public summary of the failings which occurred with the Horizon IT system at the Post Office” and subsequently led to the wrongful convictions of subpostmasters.