MPs seek reassurance over Post Office mediation scheme

Independent mediation to continue

In his letter to Vince Cable, BIS committee chair Adrian Bailey MP expressed the committee’s concern that the mediation scheme was not working as originally planned. He also said there were concerns the Post Office was not engaging as constructively as it could in the process and there were suggestions the Post Office was being overly legalistic. 

Responding to Computer Weekly's request for more information on each point in the BIS letter, the Post Office cited a report into the mediation scheme it completed itself.

The Post Office said that while it has completed its investigations, Second Sight is continuing to work on some cases. 

“We are working with Second Sight to ensure they continue to complete case reviews where they have had not already done so,” said a spokesman. “Second Sight continues to have access to the information required to carry out its role reviewing the cases in the scheme.” There were originally 150 claims lodged by subpostmasters, of which 80 remain open. The Post Office said most of these will go to mediation (see table below for progress of all cases).

“The mediators – all from the Centre for Effective Dispute Resolution (CEDR) – are independent and reputable mediation experts. CEDR [mediators] were appointed to conduct the mediations specifically to ensure that mediations are undertaken in line with best practice,” said the Post Office. “In all cases where Post Office has attended mediation it has done so in good faith, giving each applicant the opportunity to voice their concerns and attempted to address those concerns. We have ensured that funding is available to applicants involved in mediation so that they can have the support of their independent professional advisor at mediation.”

The second independent report was due to be completed by Second Sight and delivered to the Post Office earlier this month, but not made public. The Post Office told Computer Weekly it is not yet complete and it has therefore not received a final copy. Computer weekly understands the Post Office has received a version.

The Post Office said: “This is the final version of a document [Second Sight] produced last year for mediation purposes. Although all the cases in the scheme are different, some share certain features and the report's aim is to help understanding about these. The report will be shared with scheme applicants and their advisors, but is not, and never has been, intended for wider publication. It concerns only the cases in the scheme.” 

Bailey recommended Cable ensures BIS receives a copy of the final independent report carried out by Second Sight.

Information will not be destroyed

In the letter, Bailey also asked for assurances that all documents relating to investigations be retained, contrary to his understanding that documents would now be destroyed. 

The Post Office pointed out that it had “repeatedly said [we] will not destroy information relating to the scheme”, adding that it is not alone in holding records about the cases. “The scheme applicants and their advisors have been provided with copies of the Post Office and Second Sight reports and all of the supporting documents and evidence – this is up to 80 documents in some cases. The Second Sight reports prepared for mediation purposes ('part one' and the initial 'part two') have also been provided and the report currently being prepared by Second Sight will be shared with them too.”

Bailey's letter went on to question whether people who had pleaded guilty in the past were eligible for mediation, because there is some confusion. 

The Post Office said: “All the remaining cases in the scheme will be put forward for mediation with the exception of those which have been subject to a previous court ruling – those cases will continue to be considered on an individual basis, as they have been to date. In all cases, including those subject to court rulings, (if applicants give their consent) the Post Office continues to be prepared to discuss individual cases, in confidence with relevant members of Parliament or indeed to meet separately with individual applicants to discuss their cases.”

The MP’s letter claimed the Post Office should provide more support to subpostmasters when the initial inaccuracies and accounting are revealed. The Post Office said it “continues to improve its training and support for postmasters – we have acted on what we have learned through the scheme as part of that. We set up a business support programme, involving our postmasters in helping us to improve the effectiveness of the support we provide. Our progress on this is set out in our report.”

The BIS select committee also asked for reasons why Second Sight had not been provided with all the information it needed. The Post Office said it is not aware of any outstanding information.

Computer Weekly timeline of events 

May 2009: Bankruptcy, prosecution and disrupted livelihoods – Postmasters tell their story

September 2009: Postmasters form action group after accounts shortfall

November 2009: Post Office theft case deferred over IT questions

February 2011: Post Office faces legal action over alleged accounting system failures

October 2011: 85 subpostmasters seek legal support in claims against Post Office computer system

June 2012: Post Office launches external review of system at centre of legal disputes

January 2013: Post Office admits that Horizon system needs more investigation

January 2013: Post Office announces amnesty for Horizon evidence 

January 2013: Post Office wants to get to bottom of IT system allegations

June 2013: Investigation into Post Office accounting system to drill down on strongest cases

July 2013: Post Office Horizon system investigation reveals concerns

October 2013: End in sight for subpostmaster claims against Post Office's Horizon accounting system

October 2013: Former Lord Justice of Appeal Hooper joins Post Office Horizon investigation

November 2013: 150 subpostmasters file claims over 'faulty' Horizon accounting system

September 2014: Fresh questions raised over Post Office IT system's role in fraud cases

December 2014: MPs blast Post Office over IT system investigation and remove backing

December 2014: Why MPs lost faith in the Post Office's IT investigation, but vowed to fight on

December 2014: MPs to debate subpostmaster IT injustice claims

December 2014: MP accuses Post Office of acting "duplicitously" in IT investigation

December 2014: MPs force inquiry into Post Office subpostmaster mediation scheme

January 2015: Post Office faces grilling by MPs over Horizon accounting system

February 2015: Post Office CIO would talk to any subpostmaster about IT problems, promises CEO

March 2015: Post Office ends working group for IT system investigation day before potentially damaging report