Summary

  • Alice Perkins, former chair of Post Office Ltd from 2011 to 2015, is giving evidence to the inquiry into the Horizon IT scandal for a second day

  • Perkins led a Post Office board sub-committee, codenamed "Project Sparrow", which included Paula Vennells and other senior officials

  • A secret plan to sack independent forensic accountants Second Sight was revealed in the minutes of two Project Sparrow meetings in 2014

  • More than 900 sub-postmasters were prosecuted for stealing because of incorrect information from a computer system called Horizon

  • On Wednesday, Perkins apologised to the victims. The inquiry also heard that she was warned about potential faults in the Horizon IT system as early as 2011

  1. Thanks for joining uspublished at 16:45 British Summer Time 6 June

    Alice Perkins' second day at the Post Office inquiry has now finished, during which it heard that government officials weighed up sacking Paula Vennells as the Post Office's chief executive in 2014 some five years before she resigned.

    You can read our news story summing up what happened today here, and if you want to delve deeper, our comprehensive explainer on why hundreds of sub-postmasters were wrongly prosecuted is here.

    Thanks for joining us.

  2. Government officials weighed up sacking Paula Vennells in 2014published at 14:06 British Summer Time 6 June

    Emma Simpson
    Reporting from the inquiry

    We learnt something new this morning - government officials were considering sacking former CEO Paula Vennells in 2014.

    The inquiry was shown an internal government document which appeared to be from a risk and assurance committee. Her position was under review, the inquiry heard.

    Remember, the government owns the Post Office and its interests in the business were overseen by the Shareholder Executive, made up of senior industry people.

    In the summary, it says there was “a general consensus that Paula is no longer the right person to lead POL but justification is anecdotal”.

    She had a “worrying” lack of knowledge and her “people management” was causing concern, it said.

    Alice Perkins says she didn’t know the “machinery inside the department” was having these conversations.

    She told the inquiry she’d had reservations by then, too. What about other board members?

    “I think everybody had by this stage” she replied. Paula Vennells stayed on for another five years and was awarded a CBE after she finished.

  3. Inquiry hears concerns around Paula Vennells' role in 2014published at 11:23 British Summer Time 6 June

    Azadeh Moshiri
    Reporting from the inquiry

    The inquiry heard that in 2014 there were concerns around Paula Vennells’ role as chief executive, years before she resigned in 2019.

    We saw a document put together by the Department for Business, Innovation and Skills - and the shareholder representative on the board. It discussed Vennells’ role being under review.

    And here are some of the reasons why:

    "There is a general consensus that Paula is no longer the right person to lead POL [Post Office Ltd] but justification is anecdotal."

    "She had been unable to work with personalities that provide robust challenge to her."

    The inquiry counsel Jason Beer asked Alice Perkins whether Vennells preferred having “yes men and yes women around her”, “a coterie of trusted lieutenants,” as he put it. Perkins denied that but admitted she had concerns about her ability to lead the Post Office, partly because of her handling of Horizon issues.

    Perkins said the documents shown to the inquiry today were "complete news" to her.

    Alice Perkins at the PO inquiryImage source, Post Office inquiry
  4. Former Post Office chair faces inquiry againpublished at 09:43 British Summer Time 6 June

    Emma Simpson
    Business correspondent, reporting from the inquiry

    Former Post Office chair Alice Perkins is back again for another day of questions at the inquiry.

    Her defence has been that she failed to realise the significance of the warnings when she started out in her role in 2011.

    She’d been hired to focus on modernising the Post Office and stem the losses. “There were a great many other issues I was attending to,” she said.

    Yes, she could’ve asked more questions but insisted at no point was she trying to bury information.

    And then she said that the board hadn’t been kept properly informed about vital information.

    She blamed her top lawyer Susan Crichton for failing to inform them about “revelatory” legal advice on a tainted Post Office witness used in criminal prosecutions, even though Perkins had kept her out of a key board meeting.

    Perkins thought that what went wrong amounted to more of a “cock up” than a conspiracy. Sub-postmasters don’t agree with that conclusion and their lawyers will get a chance to grill her today.

  5. That's it from us, but we'll be back tomorrowpublished at 16:26 British Summer Time 5 June

    As Alice Perkins' first day at the Post Office inquiry comes to an end, so too does our live coverage.

    We'll be restarting this page tomorrow for the former Post Office chair's second day of evidence, so do join us then.

    If you want to read more in the meantime, there's still plenty on offer:

    • Catch up with the key lines from today's session here
    • And read our comprehensive explainer on why hundreds of sub-postmasters were wrongly prosecuted here

    Thanks for joining us.

  6. Former Post Office chair accused of failing to act on Horizon issuespublished at 14:04 British Summer Time 5 June

    Emma Simpson
    Business correspondent, reporting from the inquiry

    Alice Perkins speaks to the inquiryImage source, Post Office Horizon IT Inquiry

    One of the most interesting moments this morning was learning how former Post Office chair Alice Perkins was aware of Horizon problems just weeks into her new job.

    She met a partner from Ernst & Young, the Post Office's independent auditors. In a handwritten note she made of the discussion, shown to the inquiry, he tells her that the Horizon computer system was “a real risk for us”.

    He questioned whether data was being captured properly and also mentioned how “suspects” were suggesting it was a problem, too.

    Perkins admitted to the inquiry that this information was very significant, but counsel Jason Beer KC accused her of failing to act on it.

    Perkins couldn’t recall what, if anything, she did with this knowledge. Why didn’t she see the connection between concerns over the data and criminal prosecutions? “I’m a human being, and I didn’t see it,” she said.

    Alice Perkins acknowledges, in several exchanges, that she should’ve asked more questions.

  7. Watch live by pressing play abovepublished at 09:41 British Summer Time 5 June

    You can watch Alice Perkins' evidence live by pressing play at the top of the page after 09:45 BST - as a reminder, there will not be regular text updates.

    Alice Perkins being sworn in on Wednesday morning
    Image caption,

    Alice Perkins being sworn in on Wednesday morning

  8. What might Alice Perkins be asked about?published at 09:40 British Summer Time 5 June

    Emma Simpson
    Business correspondent

    There are many questions for Alice Perkins over the next two days, including a key board meeting in 2013.

    It took place on 16 July, shortly after the Second Sight interim review was published, which identified several computer bugs that raised doubts over the reliability of Horizon data used to prosecute sub-postmasters.

    Tensions were high. The Post Office’s top lawyer, Susan Crichton, had been due to present a paper to the board about Horizon issues and past criminal prosecutions but was prevented by Alice Perkins from going in, according to evidence from Paula Vennells - who delivered the paper herself despite not being a lawyer.

    The inquiry heard that Crichton was left outside like a “naughty schoolgirl”. The inquiry will want to know why.

    Did Alice Perkins try to hide problems from the board?

  9. Alice Perkins answering questions at Post Office inquirypublished at 09:39 British Summer Time 5 June

    Emma Simpson
    Business correspondent

    Alice Perkins with husband Jack Straw, pictured in 2000Image source, PA Media
    Image caption,

    Alice Perkins with husband Jack Straw, pictured in 2000

    Former Post Office Chair Alice Perkins is answering questions today. She held the role between 2011-2015, as the business split from Royal Mail.

    As chair, she oversaw the Post Office board during a key period in the scandal when concerns about the Horizon IT system began to mount, overlapping for most of her tenure with former CEO Paula Vennells.

    Perkins is a former senior civil servant and served on several company boards. She’s also married to ex-Labour Home Secretary Jack Straw. Perkins set in train the appointment of the independent investigators Second Sight, who played a key role in exposing the scandal.

    But she also chaired a Post Office sub-committee, codenamed “Project Sparrow”, which secretly decided in 2014 to sack Second Sight.

    By then the Post Office was trying to defuse the growing crisis through a mediation scheme for victims. But the committee also discussed closing or speeding up the programme, paying “token” compensation to sub-postmasters in the process.