Post Office Horizon scandal worse than feared as it may have started seven years earlier with Capture software

By Nicholas Cecil

Post Office Horizon scandal worse than feared as it may have started seven years earlier with Capture software

Ministers accepted that Capture software, introduced in branches in 1992, may have had errors which left postmasters and postmistresses suffering financial losses.

The Government has now asked the Post Office to urgently review its files and evidence so the Criminal Cases Review Commission can seek to ensure no one was wrongfully convicted of a Horizon-style injustice.

Responding to the independent Kroll report into the Capture software, Business Secretary Jonathan Reynolds promised to provide redress for postmasters who suffered losses due to it.

The Government vowed to work swiftly with victims to determine its form and scope, alongside eligibility criteria, by next spring.

The Capture accounting system was rolled out across some Post Office branches from 1992 before it was replaced by Horizon in 1999.

The Government commissioned the independent Kroll report following postmasters warning in January that they had faced detriment due to the Capture system.

The report concluded Capture could have created shortfalls.

Mr Reynolds said: "It is thanks to testimony of postmasters that this has been brought to light and failings have been discovered.

"We must now work quickly to provide redress and justice to those who have suffered greatly after being wrongly accused.

"I'd like to encourage anyone who believes they have been affected by Capture to share their story with us so we can put wrongs to right once and for all."

Some £500 million in compensation has already been paid to more than 3,300 Horizon victims.

The Business Department stressed that since any Capture errors may have happened around 25 to 32 years ago, investigations may be complicated given:

* The timescales, meaning many victims may have sadly died

* Loss or destruction of relevant evidence for example relating to shortfalls, suspensions, terminations, prosecutions, and convictions

* At least 19 different operational versions of the Capture software during the period

* The unclear number of users during this period

The Post Office has indicated it holds further information on convictions and prosecutions during the Capture period.

The Horizon IT Inquiry has heard that the "malignant culture" of the Post Office destroyed the lives of many postmasters.

It was told the Post Office's "corrosive prejudice" towards subpostmasters and its "desire for absolute control" over them was the "incubator for these terrible events".

During his closing statement to the probe on Monday, Edward Henry KC, who represents a number of subpostmasters on behalf of law firm Hodge, Jones and Allen, told chairman Sir Wyn Williams: "Such heartlessness came from the top".

More than 900 subpostmasters were prosecuted between 1999 and 2015 after faulty Horizon accounting software made it look as though money was missing from their accounts.

Hundreds are still awaiting compensation despite the previous government announcing that those who have had convictions quashed are eligible for £600,000 payouts.

Counsel to the inquiry Jason Beer KC said a total of 270,785 documents had been disclosed to core participants throughout the process, with the disclosure coming to a total of 2,214,858 pages.

He said the probe has also heard oral evidence from 298 witnesses, and has received 780 witness statements, totalling 23,928 pages.

Mr Henry singled out former Post Office boss Paula Vennells for criticism, telling the inquiry she was "more bored than outraged by subpostmasters' complaints".

In written submissions made by Ms Vennells' legal team, the former chief executive continued to deny knowledge of the extent of bugs in the Horizon system which subsequently led to wrongful convictions.

The scandal erupted into the public domain when Sir Alan Bates, who has led the campaign for its victims, became the subject of an ITV drama titled Mr Bates vs The Post Office, starring actor Toby Jones.

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