Alleged victims of a second IT scandal at the Post Office believe they are in possession of “definitive” proof they were wrongly convicted after unearthing a set of floppy disks dating back 30 years, i can reveal.
The Post Office is investigating claims it was responsible for potentially dozens of wrongful prosecutions long before the Horizon scandal began in 1999.
Numerous former sub-postmasters and their families have now come forward to claim they lost money due to faults with Capture, a piece of accounting software developed by the Post Office in-house and rolled out to branches starting in 1992.
The Post Office has admitted it is “concerned” by these claims and has a team of investigators looking into them as a matter of urgency.
Now campaigners have obtained a set of computer floppy disks containing the Capture software, which was updated by the Post Office multiple times between 1992 and 1999, and say they have been able to use them to successfully demonstrate that faults with the system could lead to apparent shortfalls in their accounts showing up in error.
Floppy disks were a type of magnetic data storage used by computers in the 80s and 90s.
MP Kevan Jones, who has been supporting Post Office victims for years, told i: “Proof that faults with Capture could result in accounting errors and shortfalls would be the smoking gun in this latest scandal. I am yet to see any evidence that the Post Office ever considered that its faulty software could have been to clame when it pursued sub-postmasters for alleged losses.
“Victims deserve answers and the Post Office should make public all the information it has related to Capture.
“The Government should also state whether it now considers it has the body of evidence required to take action.”
Rupert Lloyd Thomas, a retired IT specialist who worked at the Post Office for 27 years and has been supporting victims, told i how he used the disks to run the Capture software and found multiple examples of shortfalls occurring.
“Things could go wrong, when you upgraded the software from one version to another, for example,” he told i. “It’s valuable evidence.
He said he had “got hold of something like a dozen” versions of the Capture software and thought he was only missing one iteration.
Running the disks had not only demonstrated that the “software was capable of faults”, but that the system was also vulnerable to other external risks.
“There’s a whole range of reasons which could produce errors,” he said. “Things like a power cut.
“But the bottom line is it was not a reliable system therefore you could not rely on it as evidence in court.”
Former sub-postmaster Steve Marston, 68, was convicted of offences of theft and false accounting in 1998 when auditors found alleged shortfalls of around £79,000 at his branch in Heap Bridge, Greater Manchester.
He believes Capture evidence was used in his prosecution and hopes that the unearthed software can help towards clearing his name.
“The tests carried out show that the software created phantom losses providing definitive proof that the software is definitely faulty and unfit for purpose,” Mr Marston told i.
“I would double check everything that went into the system, all my stock, stamps etc, and make sure it was all entered.
“But because I was naive, I expected the computer to add it up correctly. In those days I was dealing with around £100,000 a week, if it was coming up and saying there was only £93,000 and I had a shortfall, I had nowhere to turn.
“The Post Office always made you feel as if you were the only one having issues. I remember when the computer first arrived, I wouldn’t touch it, I was scared of even turning it on. I just thought I was the one making mistakes.
“My area manager wasn’t someone I could turn to for help, I know if I had told her I was missing £1,000 she would have just said ‘well you have to make it good then’.
“She wasn’t interested in helping, all they wanted was to see the accounts add up. I was also afraid of telling anyone because I thought they’d think I was totally incompetent and sack me.”
How the Capture scandal unfolded
17 January 2024: i reveals that a number of former sub-postmasters claim they were wrongfully pursued by the Post Office over accounting shortfalls before the Horizon scandal. They include Steve Marston, 68, who says he was forced to plead guilty to offences of theft and false accounting in order to avoid prison in 1998. He blames an IT system called Capture18 January 2024: The Government orders the Post Office to investigate the claims reported in i
24 January 2024: Documents obtained by i show the Post Office knew Capture was prone to bugs and glitches which could cause accounting problems. The Post Office says it is investigating
25 January 2024: A spokesperson for the Prime Minister Rishi Sunak says he expects “robust action” over claims about Capture adding: “The Department for Business and Trade is actively speaking to the Post Office about their work and scrutinising it, and we will consider our approach following that.”
8 February 2024: The Post Office admits for the first time it is “concerned” that a second IT system may be linked to wrongful convictions
22 February 2024: Responding to questions about Capture victims from Labour MP Kevan Jones, Post Office minister Kevin Hollinrake says they will be entitled to apply for compensation using existing Horizon schemes but won’t be included in legislation to overturn criminal convictions
10 April 2024: i obtains a new letter which reveals at least 100 sub-postmasters in just one region of England were sacked by the Post Office due to ‘accounting malpractice’ before the Horizon scandal began. The Post Office says it has made a ‘recommendation’ to the government of how to proceed with Capture cases but declined to offer any more details
Mr Marston is due to meet Kevin Hollinrake, the Post Office minister, with his MP Rebecca Pow next week to discuss his case.
The floppy disk evidence has already been shared with the Post Office remediation unit, which is dealing with compensation claims, led by Simon Recaldin.
In an email seen by i, a member of Mr Recaldin’s team told Mr Marston: “Thank-you very much for sharing the Capture shortfall example that you had created, it is extremely helpful in our ongoing investigation into the Capture software package.”
The Government has said Capture cases cannot be included in the legislation currently making its way through Parliament which will exonerate sub-postmasters who have criminal convictions relating to the Horizon system.
Documents shared with i show the Post Office’s Capture IT team was well aware that the software was prone to bugs and errors that could cause accounting problems, and sent out frequent staff bulletins giving sub-postmasters advice on how to handle them.
But sub-postmasters say Post Office managers and investigators would not listen to their complaints that the computer system was faulty and they were forced to hand over money, sacked, and in some cases criminally prosecuted.
Mr Hollinrake has said there needs to be a “body of evidence” before Capture cases can be overturned and i understands the Government’s preference is that they be put before the Court of Appeal, as is the usual process of alleged instances of miscarriages of justice.
A Post Office spokesperson said: “We are in contact with Steve Marston and are grateful to him for all the information he has so far shared with us.
“We continue to actively investigate a number of lines of enquiry relating to Capture and throughout this we have regularly kept the Department for Business and Trade and Kevan Jones MP up to date with our findings.
“We have now shared a recommendation with the Department about what should happen next and hope to provide further information with past users of Capture as soon as we’re able to.”