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Post Office settles IT ‘fraud’ case for £58m | Post Office settles IT ‘fraud’ case for £58m |
(32 minutes later) | |
The Post Office is to pay almost £58m to settle a long-running dispute with sub-postmasters and postmistresses. | The Post Office is to pay almost £58m to settle a long-running dispute with sub-postmasters and postmistresses. |
It brings an end to a mammoth series of court cases over the Horizon IT system used to manage local post office finances since 1999. | |
A group of postmasters said faults in the system led to them wrongly being accused of fraud and false accounting. | A group of postmasters said faults in the system led to them wrongly being accused of fraud and false accounting. |
The Post Office said it accepted it had "got things wrong in our dealings with a number of postmasters" in the past. | The Post Office said it accepted it had "got things wrong in our dealings with a number of postmasters" in the past. |
Sub-postmasters run Post Office franchises across the UK, which typically provide some but not all of the services of a main post office. | Sub-postmasters run Post Office franchises across the UK, which typically provide some but not all of the services of a main post office. |
The group of 550 claimants joined a civil action to win compensation last year, but their complaint goes back much further. | The group of 550 claimants joined a civil action to win compensation last year, but their complaint goes back much further. |
They alleged that the Horizon IT system - which was installed between 1999 and 2000 - contained a large number of defects. | |
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. | 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. |
This is a major climb down by the Post Office which has made multiple appeals to try to see off the court case. | This is a major climb down by the Post Office which has made multiple appeals to try to see off the court case. |
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. | 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. |
It's not clear yet how much individual postmasters and mistresses will receive. | |
Lawyers' fees have to be taken off, along with a charge from the litigation backer, Therium. | Lawyers' fees have to be taken off, along with a charge from the litigation backer, Therium. |
But just looking at the £58m suggests payouts could be in the tens of thousands and even higher for the worst affected. | But just looking at the £58m suggests payouts could be in the tens of thousands and even higher for the worst affected. |
They were half way through a series of four trials when the Post Office sought mediation. | They were half way through a series of four trials when the Post Office sought mediation. |
It could take several weeks for individual compensation payments to be worked out. | It could take several weeks for individual compensation payments to be worked out. |
'Important lessons' | 'Important lessons' |
The Post Office apologised to the claimants, saying it was grateful to them "for holding us to account in circumstances where, in the past, we have fallen short." | The Post Office apologised to the claimants, saying it was grateful to them "for holding us to account in circumstances where, in the past, we have fallen short." |
Mr Read said: "I am very pleased we have been able to find a resolution to this longstanding dispute. | Mr Read said: "I am very pleased we have been able to find a resolution to this longstanding dispute. |
"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." | "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." |
Alan Bates, one of the lead claimants, said: "[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. | |
"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." |