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Post Office investigates software over losses

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4th Jan 2013
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The Post Office is to investigate further whether accounting software used by its branches it to blame for unexplained losses. 

Due to errors, postmasters and mistresses have had to pay for discrepancies, have been fined or in some cases imprisoned.

Action group Justice for Subpostmasters Alliance (JFSA) claims Horizon software, used by thousands of Post Offices nationwide, is to blame for these accounting discrepancies in some cases.

Close to 100 subpostmasters and mistresses have registered an interest in suing the Post Office regarding the computer system.

The Post Office denies that there is a problem with the system and has since made efforts to investigate.

In June 2012, the Post Office appointed external investigators, forensic accountants Second Sight to examine the allegations, which are still ongoing. 

They're also currently working with JFSA, which was set up in 2009, to help subpostmasters and mistresses who may be afraid of coming forward with information or problems surrounding the software to speak out.

The two groups have put forward a joint inquiry and those affected have until 28 February to tell the Post Office of any software issues. 

“Whilst we have absolute confidence and no evidence to suggest anything other than complete integrity of our branch accounting processes, we are committed to thoroughly reviewing these small number of individual cases where subpostmasters have ongoing concerns,” a Post Office spokesperson said.

“We are working very closely with the JFSA and others to help bring this matter to a close and are welcome feedback from subpostmasters and branch teams with evidence that may help us to do so.” 

JFSA chairman Alan Bates said the group who has hundreds of members felt "positive" about the inquiry. 

"Over the last year, with the support of MPs and others there has been quite a bit of change. It's great that the Post Office is taking it seriously and we're giving them the benefit of the doubt. I do believe they want the investigation over sooner rather than later and they are being supportive," he said. 

"For now, our aim is to get enough proof to convince the powers that be of the state of the system. After that, we can work on resolving everything else," he added. 

JFSA has also appointed their own forensic investigators to look into the work Second Sight is currently carrying out. 

Stories about the experiences of subpostmasters and mistresses affected by the software feature on the JFSA website, telling of how some were imprisoned for errors they said weren't theirs. Others told of how they paid discrepancies that they claim they didn't owe and more warned others against owning or running a Post Office.

AccountingWEB member David Winch highlighted the issue in the money laundering and crime discussion group, advising members who may have clients affected that the 28 February is the last day the Post Office and their external investigation group are accepting information concerning issues. 

"As Aweb members will appreciate, where shortfalls are alleged to have been caused by dishonest misappropriation of cash or stock, criminal prosecution may follow," he said. 

"It may be appropriate in some cases to advise your client to obtain legal advice from a solicitor before passing information to the firm conducting the inquiry into the Horizon system," he added. 

Have you or your clients been affected by this, or are you concerned? Let us know.

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