A report from forensic investigators has found a “reasonable likelihood” that the Capture software, utilized by hundreds of subpostmasters in the 1990s, led to accounting discrepancies for which these individuals were held accountable and, in some instances, prosecuted.
Between 1993 and the rollout of the contentious Horizon system in 1999, an estimated 1,500 to 2,000 subpostmasters operated with Capture. This investigation, commissioned by the Department for Business and Trade (DBT) and conducted by Kroll experts, highlights the troubling pattern of behavior exhibited by the Post Office, which subsequently assigned blame for financial shortfalls to numerous branch managers, a situation that has come to be known as the Post Office scandal.
Kroll’s findings did not address the validity of convictions against subpostmasters prosecuted for losses potentially linked to flaws in the Capture software. The report noted that approximately 13.5% of subpostmasters were users of Capture at the time, and there was considerable variation in computer skills among users, coupled with inconsistent training.
These findings were presented during a meeting in London attended by victims, DBT minister Gareth Thomas, and Carl Creswell, DBT director for Post Office policy and business engagement. The Capture software controversy is part of the broader Post Office scandal, initially uncovered by Computer Weekly in 2009, which saw thousands of subpostmasters wrongly blamed and prosecuted for unexplained financial shortfalls due to the unreliable Horizon IT system.
Earlier this year, former MP Kevan Jones, now a member of the House of Lords, brought forth evidence of the injustices stemming from the Capture system implemented in Post Office branches prior to the Horizon system. This followed revelations from former subpostmasters who shared their experiences after a documentary and dramatization of the Post Office scandal aired on ITV, detailing their challenges with the Capture system and the severe consequences they faced.
Capture was a PC-based application developed by the Post Office, requiring subpostmasters to invest in personal computers to run the software, which some users described as a “glorified spreadsheet.” Unlike the complex, networked Horizon system, Capture was a standalone application.
Jones visited a subpostmaster he believed was affected by the Horizon system but found the dates led to suspicions about the Capture system’s influence. Following three months of advocacy from Jones and various campaigners, the government appointed Kroll to investigate whether Capture had driven subpostmasters to wrongful financial crime prosecutions or resulted in fictitious losses they had to repay.
The inquiry aimed to assess whether the design, implementation, and utilization of the Post Office Capture system caused detriment to subpostmasters and whether the Post Office adequately addressed issues related to it. Jones emphasized the need for further investigation into the Post Office’s harsh treatment of subpostmasters, expressing a lack of trust in the institution.
The Post Office conducted its own inquiry into Capture after initial reports of issues surfaced, but it failed to investigate whether any financial losses could be attributed to software errors.
Among those coming forward after the ITV dramatization was Steve Marston, who operated a branch in Bury, Lancashire. After being prosecuted in 1996 for theft and false accounting relating to an unexplained shortfall of nearly £80,000, Marston stated he encountered no issues with the previous paper-based accounting system until Capture was introduced in 1996. He recalled feeling pressured to adopt the software amidst branch closures.
When an audit uncovered losses that Marston was unable to cover, he was advised to plead guilty to avoid jail time. The judge acknowledged Marston’s bravery in prior incidents but still sentenced him to a 12-month suspended term, which ultimately cost him his home, business, and plunged him into bankruptcy.
Another former Post Office employee, Steve Lewis from South Wales, who started as a counter clerk and later became an auditor, experienced unexplained losses as well. He was told by the Post Office that his case was isolated, and as a result, he lost his business and home and faced mental health challenges.
The ITV dramatization played a significant role in bringing the long-known scandal, initially reported by Computer Weekly in 2009, into the public eye. Despite a High Court ruling confirming that subpostmasters were wrongly blamed for accounting issues and the miscarriage of justice surrounding Horizon, it took widespread media coverage to galvanize public outrage and force government action, including legislation to overturn over 700 wrongful convictions.
While Capture and Horizon differ significantly in technology and complexity, their users encountered similar issues. Many subpostmasters who had not faced accounting problems before the introduction of Capture began to experience financial discrepancies.
The Post Office was aware of system bugs and even had to undertake a complete software rewrite. Evidence from a 1994 letter indicated that the problems with Capture were documented at the time.
Patrick Sedgewell, a former Post Office employee who advocated for Capture victims, noted that the warnings about bugs issued by the Post Office were tantamount to a self-admission of guilt.
Moreover, investigations into Capture revealed inadequacies in training, with subpostmasters lacking proper guidance while the technology was new to many. A significant increase in investigations into subpostmasters occurred with the implementation of Capture and later Horizon, reflecting a troubling shift in the Post Office’s approach to financial discrepancies.
In the years preceding the introduction of Capture, fewer than five investigations into account shortfalls occurred annually, but this number rose to an average of 191 per year in the six years after Capture was launched, peaking at 378 investigations in 1998. This pattern mirrors an alarming rise in financial crime convictions following the debut of the Horizon system in 1999.