Secret Documents Reveal Post Office's Hidden Plan to Dismiss Horizon IT Reviewer
Documents obtained by the BBC reveal that Post Office executives, under a secretive sub-committee dubbed "Project Sparrow," resolved to dismiss independent forensic accountants Second Sight in April 2014.
This firm had detected issues within the Post Office's Horizon IT system. Despite government awareness, the details of this decision weren't disclosed to Parliament or the public.
Ex-sub-postmaster Alan Bates views these revelations as undeniable evidence of a pervasive cover-up.
Against a backdrop of claims that the system was reliable, the Post Office planned to offer minimal compensation to the wrongfully accused sub-postmasters, totaling just £1 million—significantly less than the scandal's eventual costs exceeding £1 billion.
As the controversy unfolded, the existence of Project Sparrow, initially hidden in partially redacted records, was eventually exposed. Key figures, including former Post Office chair Alice Perkins and ex-chief executive Paula Vennells, participated in discussions of managing the fallout and dispensing token settlements.
The Post Office sought to close or expedite its mediation scheme even while being aware that many sub-postmasters would remain dissatisfied. They refused to offer any ex gratia payments to support the sub-postmasters while their claims were assessed.
Despite an interim report by Second Sight in 2013 finding no "systemic" flaws—in the sense that not all branches were affected—it did highlight incidents where software defects impacted certain branches, leading to incorrect balances and transactions that took time to correct.
In December 2014, when a parliamentary debate addressed the scandal, the Post Office still cited Second Sight's independent role, yet in March 2015, soon after Project Sparrow's decision, Second Sight's contract was terminated, with the Post Office taking over the investigations internally.
Involved parties, including Perkins, Vennells, and representatives from the government's UK Government Investments division, have not provided comments, noting that the ongoing inquiry is meant to bring out the full truth and accountability of the matter.
The Post Office stated it would be inappropriate to discuss allegations outside of the inquiry, stressing their commitment to uncovering the truth.