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Could there be another Post Office scandal?
Could there be another Post Office scandal?

Sky News

time10 hours ago

  • Sky News

Could there be another Post Office scandal?

👉 Listen to Sky News Daily on your podcast app 👈 The Horizon scandal gained international exposure after the ITV drama Mr Bates vs The Post Office. And now, more faulty Post Office accounting software has been uncovered, in what some are calling a second Post Office scandal. Today, the government has announced details of a compensation scheme for postmasters who suffered through using Capture in the 1990s. In today's episode, Sarah-Jane Mee is joined by news correspondent Adele Robinson, who has unearthed new evidence to show the system was faulty and speaks to families devastated by the scandal.

New compensation scheme announced for Post Office Capture victims
New compensation scheme announced for Post Office Capture victims

ITV News

time11 hours ago

  • Business
  • ITV News

New compensation scheme announced for Post Office Capture victims

Horizon scandal Politics Postmasters who suffered financial shortfalls in the 1990s due to errors of the faulty Capture IT system that preceded the Horizon scandal will be entitled to payouts from a new redress scheme. Capture, which was a precursor to Horizon developed in-house by the Post Office, led to a number of sub-postmasters being accused of 'accounting malpractice', with some having their contracts terminated. Some resigned, while others were prosecuted or had to pay money back. In a move to "right the wrongs of the past", the Department for Business and Trade has announced a new compensation scheme for those affected by the faults of Capture between 1992 and 2000. It follows the government's acceptance of findings from an independent investigation by Kroll Associates, which concluded there was a reasonable likelihood that Capture created financial shortfalls for postmasters. Kroll found that 13.5% of all branches may have used Capture, and that sub-postmasters felt pressured by network and area managers to use the system. Its report also found that legal teams had not been investigating potential "bugs or errors" in the system. At least 40 former sub-postmasters claimed they were wrongly accused of theft due to errors in the Capture system, ITV News reported last year. "Today's announcement represents another important step in righting the wrongs of the past and rebuilding trust in the Post Office," said Post Office Minister Gareth Thomas. The scheme is expected to open for applications in Autumn 2025, with an initial phased rollout for 150 claimants to ensure the process is fair, proportionate and accessible before wider implementation. It comes as the government confirmed that £1 billion has been paid out in compensation to over 7,300 postmasters affected by the Horizon IT scandal, and the opening of the Horizon Shortfalls Scheme Appeal process in May. The Capture Redress Scheme has been designed to address cases dating back over two decades, where documentation that can be used as evidence may be limited. It will include a " straightforward two-stage process", according to the government, comprising of an initial eligibility review followed by an independent panel assessment. A "holistic" approach to assessments will be taken, considering both financial losses and the wider personal impact on postmasters. The government says the scheme will also include prompt preliminary payments for eligible claimants, ensuring early acknowledgement of loss, and a guided scoring and banding model for "consistency in awards, while maintaining flexibility". Hudgell Solicitors says it is acting on behalf of more than 100 former sub-postmasters prosecuted, sacked or made to pay back alleged branch shortfalls when using the Capture accounting system. Of those cases, more than 30 are being led by relatives of former sub-postmasters who have since died, the firm said in February. They include Mark Lloyd-Holt and his mother, Agnes, who are pursuing justice on behalf of Agnes' late husband Peter, who died in 2021, aged 75, without ever having the opportunity to clear his name. He was sacked from his role as sub-postmaster of his Bolton Post Office in 1994 after accounts at his branch showed unexplained shortfalls, with his family saying the impact of all that happened "destroyed" him and left him a "shell of himself". Following a meeting with the government in February to discuss the second Post Office IT scandal, Neil Hudgell, of Hudgell Solicitors, said: "We will get redress and justice for those whose lives were affected by Capture. "There are potentially hundreds affected, and sadly a large number are likely to be people who are no longer with us, and died without ever being able to clear their name. "Our message is that people shouldn't be put off by having a lack of documentation. "If they know or suspect that they, or family members were affected by accounting issues between 1992 and 1999 which may have been due to Capture, they should come forward. "That certainly includes family members acting on behalf of loved ones who have since passed away." Who can apply to the Capture compensation scheme? Postmasters are eligible to apply if they:

Post Office rescue plan slammed for lack of transparency and strategic detail
Post Office rescue plan slammed for lack of transparency and strategic detail

The Citizen

time12 hours ago

  • Business
  • The Citizen

Post Office rescue plan slammed for lack of transparency and strategic detail

The Post Office turnaround strategy is being criticised for raising more questions than providing answers. The Select Committee on Economic Development and Trade expresses concern about the work of business rescue practitioners on the South African Post Office's (Sapo) turnaround strategy. This follows the practitioners' plan presentation in parliament on Wednesday, which outlined the progress being made. According to the practitioners, their long-term vision is to transform the Post Office into an e-commerce hub and multipurpose service centre. Concerns about further job losses and transparency Committee chairperson Sonja Boshoff said troubling realities remain. The biggest being the retrenchments of more than 4 000 employees, with no confirmation that there will not be any further job losses. 'Service delivery at the Post Office has significantly deteriorated, and the entity continues to survive on state bailouts. Public confidence has been completely eroded, and the long-term sustainability of Sapo remains in serious jeopardy,' Boshoff said in a statement on Thursday. She also raised concerns about the practitioners' request to present substantial portions of the turnaround strategy in a closed session. 'Sapo is a state-owned enterprise funded by public money. The use of in-camera briefings must remain the exception, not the rule. 'Such briefings should only be permitted in instances of legitimate commercial sensitivity – not as a tool to shield institutional failures from public scrutiny and parliamentary oversight,' Boshoff said. ALSO READ: Post Office rescue plan is working, but more money is needed Timelines and funding clarity The prevention strategy has been criticised for offering limited details regarding innovation and measurable outcomes. The committee notes that while the plan references digitisation, a revised branch footprint, and hybrid financing models, these aspects remain vague, lacking implementation timelines and funding clarity. It is troubling that no investor has yet shown serious interest in supporting the turnaround of the national postal service, Boshoff said. Unanswered questions She said the following key questions remained unanswered: How many of the retrenched employees have actually received support through the Temporary Employer-Employee Relief Scheme (Ters) fund? What efforts have been made to engage the private sector in restoring core service functions? On what basis is Sapo still classified as a 'strategic national asset' while continuing to rely on repeated state bailouts? How will the proposed hybrid funding model work in practice, and who will ultimately bear the financial risk? 'It is imperative that public institutions – particularly those under business rescue and funded by taxpayers – operate with transparency, accountability, and defined performance indicators, the committee chairperson said. ALSO READ: More millions to save jobs at SA Post Office 'A turnaround plan cannot rely on slogans or structural tinkering. It must restore credibility, modernise operations and rebuild trust with the South African public who depend on these services.' Clarity, accountability and transparency Boshoff also emphasised that as the committee continues its oversight work, it will insist on greater clarity, stronger accountability and full transparency from all parties involved in the business rescue process. 'The relevance of the Post Office in the broader communications and logistics sector is fast diminishing. 'This can only be reversed through genuine diversification of its service offering and complete modernisation of its operations,' she said. Retrenchments and saved jobs A total of 4 875 employees were retrenched in 2024 after Post Office entered business rescue, with a R8.7 billion debt. In May, it was announced that Sapo and the Unemployment Insurance Fund (UIF) agreed on a deal to fund salaries of the remaining employees while the government works to restore the postal service's fortunes. The agreement saw the return of Ters, used during the 2020 global health pandemic. Ters will inject R381 million into the post office over six months to assist 5 956 employees. NOW READ: The plan to fix the SA Post Office

Post Office scandal: Compensation scheme for Capture victims announced
Post Office scandal: Compensation scheme for Capture victims announced

Sky News

time16 hours ago

  • Business
  • Sky News

Post Office scandal: Compensation scheme for Capture victims announced

The government has announced a compensation scheme for postmasters who suffered financial shortfalls due to a faulty Post Office IT system that preceded the Horizon scandal. The Capture software was a faulty computer system used by postmasters in more than 2,000 branches in the 1990s. It comes as Sky News revealed that a damning report into the system has been unearthed after nearly 30 years and could help overturn criminal convictions. 1:49 In a statement, the government said it would "provide fair compensation" for those who suffered financial shortfalls due to the Capture software between 1992 and 2000. The scheme is expected to open for applications in Autumn 2025 and will have an "initial phased rollout" for 150 claimants to ensure the process is "fair, proportionate and accessible before wider implementation". Post Office minister Gareth Thomas said: "We are committed to delivering fair and swift redress for all postmasters affected by Post Office software failures. "Today's announcement represents another important step in righting the wrongs of the past and rebuilding trust in the Post Office." 11:28 The government said all eligible claims will be reviewed by an independent panel of experts operating entirely separately from the government. It said the panel will take a holistic view of each claim, avoiding drawn-out legal processes and providing fair redress even where evidence is low. It will also use a balance of probabilities standard of proof, recommend appropriate payment levels and provide claimants the right to appeal in certain circumstances.

Post Office scandal: Compensation scheme for Capture victims announced
Post Office scandal: Compensation scheme for Capture victims announced

Yahoo

time16 hours ago

  • Business
  • Yahoo

Post Office scandal: Compensation scheme for Capture victims announced

The government has announced a compensation scheme for postmasters who suffered financial shortfalls due to a faulty Post Office IT system that preceded the Horizon scandal. The Capture software was a faulty computer system used by postmasters in more than 2,000 branches in the 1990s. It comes as Sky News revealed that a damning report into the system has been unearthed after nearly 30 years and could help overturn criminal convictions. In a statement, the government said it would "provide fair compensation" for those who suffered financial shortfalls due to the Capture software between 1992 and 2000. The scheme is expected to open for applications in Autumn 2025 and will have an "initial phased rollout" for 150 claimants to ensure the process is "fair, proportionate and accessible before wider implementation". Post Office minister Gareth Thomas said: "We are committed to delivering fair and swift redress for all postmasters affected by Post Office software failures. "Today's announcement represents another important step in righting the wrongs of the past and rebuilding trust in the Post Office." Read more from Sky News: The government said all eligible claims will be reviewed by an independent panel of experts operating entirely separately from the government. It said the panel will take a holistic view of each claim, avoiding drawn-out legal processes and providing fair redress even where evidence is low. It will also use a balance of probabilities standard of proof, recommend appropriate payment levels and provide claimants the right to appeal in certain circumstances.

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