What we learned from the post boss

All eyes were on outgoing postal chief Nick Read this week as he spent three days investigating the Horizon IT scandal.

Mr Read replaced former boss Paula Vennels in 2019 and was brought in to “right the wrongs of the past”.

The unwarranted prosecutions may have stopped, but he still had questions to answer about how much the organization had actually changed when he testified.

Mr Read had taken a leave of absence from his regular job to prepare for the inquest.

Unlike the performance of his predecessor Paula Vennells, there were no tears. But there were some important revelations.

Here are five things we learned from his statements.

It has emerged that Mr Read was not made aware, either by accident or design, of the scale of the challenge he faces at the Post Office.

Between 1999 and 2015, hundreds of subpostmasters were wrongly prosecuted because faulty Horizon accounting software made it appear as if money was missing from branches.

When Mr Read took over the top job in September 2019, the organization had just lost a Supreme Court ruling against a group of these wrongfully prosecuted subpostmasters and was on the verge of losing another.

However, there was no reference to the ongoing legal challenges in his job description. The flawed Horizon IT system was not mentioned once.

In fact, the Post’s top lawyer is said to have instructed Mr Read not to dwell on past events.

He was even told there was no “major PR risk.” He said the organization is partly in denial, partly in paralysis.

Referring to those who came before him, Mr Read told the inquiry that many of the Post’s former senior executives “do not appear to have been held to account”.

Mr Read’s leadership has been marked by controversy over his own remuneration. His former human resources manager claimed he was “obsessed” with a raise.

He admitted he was “frustrated at times,” repeatedly lobbied for more money and even sought legal and PR advice from friends.

Mr Read said it never became a distraction but apologized for how “bad” it looked with so many victims still waiting for compensation.

Claims about bullying, misogyny and pay came from people who were left in the dark, he said.

In his written testimony, he even claimed that one of these people, former chairman Henry Staunton, fell asleep in board meetings.

New figures released this week show that £363 million has already been paid out in financial compensation to former sub-postmasters, but many are still waiting.

Before Mr Read began his evidence, the coroner emotionally revealed that another victim died last week without ever receiving the money she was owed.

The postal boss said it was “deeply regrettable” that the process had taken so long. He blamed the bureaucracy, not prejudice or greed.

He said it was “amazing” that his organization managed some of the programs, given people’s lack of trust in the postal service.

Could the government use the Post Office as a “shield” to stay away from compensation decisions? “That could be a description, yes,” he admitted.

For many subpostmasters, the continued employment of people who were investigated against them or who were at the post office at the height of the scandal is a bone of contention.

Mr Read revealed that three employees at Project Phoenix remain under investigation. This means they are accused of wrongdoing.

He also admitted that a “handful” of investigators were still with the organization – albeit now in different roles.

The chief executive wanted to reassure the inquiry that he would not ignore certain allegations and would ask people to resign from their posts if it would increase the sub-postmaster’s confidence.

However, when presented with meeting notes which suggested ministers were pleased the Post Office was more robust and not worried about employment tribunals, Mr Read was forced to admit they had found it difficult to “get people out of the organisation” .

“Where did the money go?” It is one of the many unanswered questions in this scandal.

Mr Read was repeatedly questioned about the whereabouts of the cash which the sub-postmasters had deposited in their branch accounts to cover apparent deficits. The boss put the missing money at a new figure: £36 million.

Mr Read said he was upset that it was difficult to resolve the issue.

He expressed surprise at the survey results, which suggested subpostmasters are still struggling and using their own savings to make up for losses.

Meanwhile, investigative lawyers pointed to new subpostmaster contracts that still relate to the Post Office’s investigative powers, including evidentiary interview processes, which are conditional. Mr Read acknowledged this could be “stubborn”.

Mr Read’s evidence may now be complete, but he still has several months ahead of him in the role. He assured the commission of inquiry that he would take the time to bring about further changes. Sub-postmasters will be watching closely.