{"id":16175,"date":"2019-12-11T12:16:45","date_gmt":"2019-12-11T17:16:45","guid":{"rendered":"http:\/\/worldjusticenews.com\/news\/?p=16175"},"modified":"2019-12-11T12:18:04","modified_gmt":"2019-12-11T17:18:04","slug":"post-office-settles-it-fraud-case-for-58m","status":"publish","type":"post","link":"https:\/\/worldjusticenews.com\/news\/2019\/12\/11\/post-office-settles-it-fraud-case-for-58m\/","title":{"rendered":"Post Office settles IT \u2018fraud\u2019 case for \u00a358m"},"content":{"rendered":"<p class=\"story-body__introduction\">The Post Office is to pay almost \u00a358m to settle a long-running dispute with sub-postmasters and postmistresses.<\/p>\n<p>It brings an end to a mammoth series of court cases over the IT system used to manage local post office finances since 1999.<\/p>\n<p>A group of postmasters said faults in the Horizon system led to them wrongly being accused of fraud.<\/p>\n<p>The Post Office said it accepted it had &#8220;got things wrong in our dealings with a number of postmasters&#8221; in the past.<\/p>\n<p>Sub-postmasters run Post Office franchises across the UK, which typically provide some but not all of the services of a main post office.<\/p>\n<p>The group of 550 claimants joined a civil action to win compensation last year, but their complaint goes back much further.<\/p>\n<p>They alleged that the Horizon IT system &#8211; which was installed between 1999 and 2000 &#8211; contained a large number of defects.<\/p>\n<p>Some said their lives had been ruined when they were pursued for funds which managers claimed were missing. Some even went to jail after being convicted of fraud.<\/p>\n<p>The claimants were half way through a series of four trials when the Post Office sought mediation.<\/p>\n<p>It could take several weeks for individual compensation payments to be worked out.<\/p>\n<h2 class=\"story-body__crosshead\">&#8216;I&#8217;m in a daze&#8217;<\/h2>\n<figure class=\"media-landscape no-caption full-width\"><span class=\"image-and-copyright-container\"><img loading=\"lazy\" decoding=\"async\" class=\"responsive-image__img js-image-replace\" src=\"https:\/\/ichef.bbci.co.uk\/news\/624\/cpsprodpb\/05EF\/production\/_110091510_johamilton.jpg\" alt=\"Jo Hamilton\" width=\"976\" height=\"549\" data-highest-encountered-width=\"624\" \/>Jo Hamilton<\/span><\/figure>\n<p>&nbsp;<\/p>\n<p>Claimant Jo Hamilton was accused by the Post Office of taking \u00a336,000 from the village shop she ran in a village in Hampshire.<\/p>\n<p>She said of the settlement: &#8220;It&#8217;s one of the best days I&#8217;ve ever had. You dream about victory, but now it&#8217;s actually here.&#8221;<\/p>\n<p>She said that issues in the Horizon system led to big discrepancies in her accounts which she reported to her Post Office area manager.<\/p>\n<p>But that manager could find nothing wrong with the system, and Jo was put in a situation where &#8220;you had to prove your innocence&#8221;.<\/p>\n<p>After a two year process, she eventually pleaded guilty to false accounting at Winchester Crown Court to escape a more serious charge of theft.<\/p>\n<p>She soon gave up her shop and found it difficult to get a new job due to her criminal record. But she now feels vindicated, having fought to clear her name, and her conviction is being reviewed.<\/p>\n<h2 class=\"story-body__crosshead\">&#8216;Important lessons&#8217;<\/h2>\n<p>The Post Office apologised to the claimants, saying it was grateful to them &#8220;for holding us to account in circumstances where, in the past, we have fallen short.&#8221;<\/p>\n<p>Mr Read said: &#8220;I am very pleased we have been able to find a resolution to this longstanding dispute.<\/p>\n<p>&#8220;Our business needs to take on board some important lessons about the way we work with postmasters, and I am determined that it will do so. We are committed to a reset in our relationship with postmasters, placing them alongside our customers at the centre of our business.&#8221;<\/p>\n<p>Alan Bates, former sub-postmaster of the Craig-y-Don branch in Llandudno, and one of the lead claimants, said: &#8220;[We] would like to thank Nick Read, the new chief executive of Post Office, for his leadership, engagement and determination in helping to reach a settlement of this long-running dispute.<\/p>\n<p>&#8220;It would seem that from the positive discussions [we have had] there is a genuine desire to move on from these legacy issues and learn lessons from the past.&#8221;<\/p>\n<p>The Horizon system, which is provided by Fujitsu, is still being used in all 11,500 Post Office branches in the UK.<\/p>\n<figure class=\"media-landscape no-caption full-width\"><span class=\"image-and-copyright-container\"><img loading=\"lazy\" decoding=\"async\" class=\"responsive-image__img js-image-replace\" src=\"https:\/\/ichef.bbci.co.uk\/news\/624\/cpsprodpb\/12B12\/production\/_109826567_simongompertz-nc.png\" alt=\"Analysis box by Simon Gompertz, personal finance correspondent\" width=\"1706\" height=\"340\" data-highest-encountered-width=\"624\" \/><\/span><\/figure>\n<p>This is a major climb down by the Post Office which has made multiple appeals to try to see off the court case.<\/p>\n<p>But legal costs were stretching into the tens of millions, so the price of losing at the end of this mammoth legal process could have been a great deal higher.<\/p>\n<p>It&#8217;s not clear yet how much individual postmasters and mistresses will receive.<\/p>\n<p>Lawyers&#8217; fees have to be taken off, along with a charge from the litigation backer, Therium.<\/p>\n<p>But just looking at the \u00a358m suggests payouts could be in the tens of thousands and even higher for the worst affected.<\/p>\n<p>Source: <a href=\"https:\/\/www.bbc.co.uk\/news\/business-50741916\" target=\"_blank\" rel=\"noopener noreferrer\">bbc.co.uk<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<div class=\"mh-excerpt\">The Post Office is to pay almost \u00a358m to settle a long-running dispute with sub-postmasters and postmistresses. It brings an end to a mammoth series of court cases over the IT system used to manage <a class=\"mh-excerpt-more\" href=\"https:\/\/worldjusticenews.com\/news\/2019\/12\/11\/post-office-settles-it-fraud-case-for-58m\/\" title=\"Post Office settles IT \u2018fraud\u2019 case for \u00a358m\">[&#8230;]<\/a><\/div>\n","protected":false},"author":1,"featured_media":16176,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"pmpro_default_level":"","footnotes":""},"categories":[109,2,4],"tags":[305,6819,5129],"class_list":{"0":"post-16175","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-headline","8":"category-news","9":"category-uk","10":"tag-fraud","11":"tag-post-office","12":"tag-winchester-crown-court","13":"pmpro-has-access"},"_links":{"self":[{"href":"https:\/\/worldjusticenews.com\/news\/wp-json\/wp\/v2\/posts\/16175","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/worldjusticenews.com\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/worldjusticenews.com\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/worldjusticenews.com\/news\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/worldjusticenews.com\/news\/wp-json\/wp\/v2\/comments?post=16175"}],"version-history":[{"count":1,"href":"https:\/\/worldjusticenews.com\/news\/wp-json\/wp\/v2\/posts\/16175\/revisions"}],"predecessor-version":[{"id":16177,"href":"https:\/\/worldjusticenews.com\/news\/wp-json\/wp\/v2\/posts\/16175\/revisions\/16177"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/worldjusticenews.com\/news\/wp-json\/wp\/v2\/media\/16176"}],"wp:attachment":[{"href":"https:\/\/worldjusticenews.com\/news\/wp-json\/wp\/v2\/media?parent=16175"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/worldjusticenews.com\/news\/wp-json\/wp\/v2\/categories?post=16175"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/worldjusticenews.com\/news\/wp-json\/wp\/v2\/tags?post=16175"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}