Friday, October 18, 2024

Government Receives Report on Second Controversial Post Office IT System

The government has received a report concerning a software application used by subpostmasters prior to the notorious Horizon system, which has been implicated in causing unexplained accounting discrepancies that devastated both businesses and lives.

As far back as 30 years ago, postmasters experienced financial shortfalls that they attribute to errors in a PC-based software called Capture, implemented before the significant computerization of branches commenced in 1999. Concerns about this software emerged following the airing of the ITV drama “Mr Bates vs the Post Office” in January, which highlighted the Post Office scandal.

In response to claims from affected subpostmasters, the Department for Business and Trade (DBT) commissioned an investigation by forensic experts at Kroll. An email to a former subpostmaster has confirmed that Kroll’s final report is now completed, and the government is preparing to publish it on the Gov.uk website.

Computer Weekly reached out to Neil Hudgell, a solicitor representing around 40 former Capture users, for an update. While he refrained from commenting on the report’s status, he expressed satisfaction that Kroll had swiftly provided a draft report to DBT, and he is optimistic that its contents will support his clients’ claims. Many former subpostmasters faced financial losses and some were wrongfully convicted of crimes long before others were prosecuted for losses attributed to Horizon.

Hudgell stated, “Our primary focus now is advocating for the prompt release of the report and clarity on the next steps, which should include pathways to exoneration and compensation without lengthy processes.” Some subpostmasters faced convictions for financial crimes nearly three decades ago.

The Capture system was a PC-based application created by the Post Office that subpostmasters installed on personal computers to manage their accounts. Users described it as a “glorified spreadsheet,” a standalone system in contrast to the more intricate, networked Horizon.

Computer Weekly reported in January that former Capture users have come forward, asserting they were prosecuted due to unaccounted shortfalls. Former MP Kevan Jones, now a member of the House of Lords, has been an advocate for justice for Horizon victims and is leading a campaign for subpostmasters who believe they faced financial losses and legal consequences due to Capture errors.

So far, those adversely affected by the Capture software have been excluded from the government’s response to the Horizon scandal, which included the passing of legislation in May to overturn the wrongful convictions of 900 subpostmasters.

Over 1,000 subpostmasters may have utilized Capture. A Post Office Branch Focus newsletter from September 1995 indicated that postmasters were encountering issues with the application, acknowledging that “as new software, there would inevitably be faults in the program.”

Steve Marston was prosecuted in 1996 for theft and false accounting, following an unexplained shortfall of nearly £80,000 at his Bury, Lancashire branch. He had never experienced issues with the paper-based accounting methods he used for two decades until his branch transitioned to Capture.

Marston reported feeling pressured to use the new system during a time when many branches were closing. Although he had a clean history with manual accounting, he accrued a debt of £79,000 within two years of implementing Capture. After covering initial losses from his personal finances, the situation escalated until an audit uncovered a deficit he could not fully compensate. He was advised to plead guilty to avoid prison and was ultimately given a 12-month suspended sentence, leading to the loss of his home and business, resulting in bankruptcy.

Marston hopes to achieve justice.

The Post Office scandal was initially brought to light by Computer Weekly in 2009, revealing the experiences of seven subpostmasters affected by the Horizon software, which resulted in one of the most significant miscarriages of justice in British history.

– Also read: What you need to know about the Horizon scandal
– Also watch: ITV’s documentary – Mr Bates vs The Post Office: The real story
– Also read: Post Office and Fujitsu malevolence and incompetence means huge taxpayers’ bill