Post Office Scandal: Former CEO Sought to Minimize Compensation for Wrongfully Convicted Sub-Postmasters

During a February 2014 meeting, former Post Office chief Paula Vennells expressed concern over a mediation scheme potentially paying out £100 million in compensation to wrongly convicted sub-postmasters. Vennells suggested that the envisioned compensation was initially intended to be much smaller, akin to a mere token gesture with an apology. Attendees at the meeting included Vennells, Post Office general counsel Chris Aujard, and representatives from auditing firm Second Sight.

Former Post Office Chief Paula Vennells Sought to Limit Compensation for Wrongly Convicted Sub-Postmasters

London, April 26, 2024 - The ongoing public inquiry into the Post Office Horizon scandal has revealed that former Post Office Chief Executive Paula Vennells sought to pay only nominal compensation to sub-postmasters who were wrongfully convicted of financial crimes.

Minutes from a February 2014 meeting, obtained by The Telegraph, show that Vennells expressed concern over a mediation scheme that could potentially pay out £100 million in compensation, significantly exceeding initial estimates.

At the meeting, attended by Vennells, Post Office General Counsel Chris Aujard, and representatives from auditing firm Second Sight, Vennells suggested that the compensation should be much smaller, amounting to a mere token gesture and apology.

This revelation has raised questions about Vennells' priorities and the Post Office's initial response to the scandal.

During the inquiry, Angela van den Bogerd, a former senior Post Office manager, faced questioning regarding the tragic case of Martin Griffiths, a sub-postmaster who took his own life in 2013 after being wrongfully prosecuted.

Evidence presented to the inquiry shows that the Post Office's initial response to Griffiths' death prioritized protecting its brand reputation over providing support to his family.

In an email to van den Bogerd and other senior Post Office managers one month after Griffiths' suicide, Vennells requested background information on his family and mental health status in order to brief the board.

Vennells was quoted as saying, "I had heard but have yet to see a formal report, that there were previous mental health issues and potential family issues."

Van den Bogerd, in her statement to the inquiry, indicated that she collaborated with other colleagues to provide Vennells with the requested information.

Van den Bogerd also confirmed that a non-disclosure agreement (NDA) was included in the settlement with Griffiths' widow. She explained that this was standard practice at the Post Office, but admitted that she had not questioned it.

When asked by Jason Beer KC if the NDA amounted to secrecy, van den Bogerd responded that it was simply a way to settle claims and conclude the engagement, adding that it was a general practice, not specific to the Griffiths case.

Van den Bogerd held various senior roles at the Post Office during her 35-year career, including Head of Partnerships, Director of Support Services, and Director of People and Change. From 2010 onwards, she was responsible for handling complaints about the Horizon system.

Earlier in the inquiry, Sam Stein KC questioned van den Bogerd about whether she was aware of concerns regarding the Horizon system prior to her involvement. She acknowledged that there were "rumblings" around the time she assumed her role.

However, van den Bogerd denied claims that the helpline set up by the Post Office to address Horizon-related issues was fraudulent. Stein KC informed the inquiry that out of the 102 sub-postmasters represented by Howe & Co law firm, 43% were told by the helpline that the shortfall was their own responsibility.

The Post Office Horizon scandal has had a devastating impact on hundreds of sub-postmasters, with over 700 being wrongly convicted and 236 serving time in prison. The public inquiry is continuing to investigate the full extent of the scandal and the Post Office's response to it.