Post Office lawyers told bosses Capture IT accounts were ‘unreliable’

The Post Office’s legal team told bosses that a second IT system was faulty and ‘unable to provide a clear audit trail’ but sub-postmasters were prosecuted anyway, i can reveal.

Dozens of former sub-postmasters have come forward to claim they suffered accounting problems while using Capture, a piece of software developed in-house by the Post Office and rolled out to branches in the 1990s.

However, in a precursor to the Horizon scandal, sub-postmasters say investigators refused to accept that the computer system might be responsible for alleged shortfalls and they were forced to hand over money, sacked, and in some cases criminally prosecuted.

Documents shared with i show that the Capture Helpdesk, based in Farnborough, Hampshire, was aware the system was prone to faults and glitches in 1996 – at the time sub-postmasters were being accused of stealing missing money.

They show that the Post Office Solicitor’s Office, which was responsible for prosecutions at the time, was consulted by the Capture IT team due to concerns about the accuracy of its figures.

In March 1996, the team wrote to sub-postmasters using Capture to advise them that they should also keep ‘manual’ cash books.

“The reason for maintaining manual records follows advice from the Post Office Solicitors Office that current automated systems are unable to provide a clear audit trail for transactions or for cash and stock holdings entered at any specific time,” the team said.

“Similarly, the system could not provide an audit trail if any amendments are made to figures without the knowledge of the sub-postmaster.”

A newsletter sent by the Capture team in March 1996 advised sub-postmasters to also keep manual records (Photo: Supplied)

A court transcript from the case of June Tooby, a sub-postmistress sued by the Post Office in 2003, revealed how Post Office investigators and lawyers denied under oath that the computer system was faulty.

Mrs Tooby died in 2020 but her widow Ken said: “Surely the Post Office investigators knew about faults with Capture at that time?

“The Post Office had all the paperwork. Somebody senior should have known.”

Former Steve Marston, 68, was convicted of charges including theft and false accounting by the Post Office in 1998 after auditors claimed around £79,000 was missing from his branch.

Mr Marston says his problems began when he was told to start using the computer system Capture for his accounts.

“After that, they never sent any paper ledgers out,” he told i.

“I was never told by regional manager to keep manual records as well.

“What would be the point of doing the same thing again? The whole point of Capture was that it was supposed to save us time.”

Mr Marston recalls that when he was interviewed, Post Office investigators had print-outs from the Capture system which they cited as evidence of missing money.

Since i first revealed claims of a second IT scandal linked to the Capture system, lawyers acting for the Post Office have told Mr Marston that they have been unable to find any evidence relating to his prosecution.

A solicitor at law firm Peters & Peters wrote: “Whilst we continue to conduct searches in recently identified repositories for all cases and on a priority basis (currently prioritising ongoing appeals and applications), to date there has been very little to no data identified in these additional repositories that relate to pre-1999 cases.”

The Government has previously agreed to appoint an independent expert to examine original copies of the Capture software unearthed by campaigners.

Steve Marston, who was prosecuted after using Capture. (Photo: Tom Pilston)

Post Office minister Kevin Hollinrake has indicated that he does not believe alleged Capture victims can be exonerated in legislation currently before Parliament which will overturn the convictions of around 900 sub-postmasters who used the Horizon computer system.

Mr Hollinrake has said the Government needs to establish a “body of evidence” before agreeing to expand what is already an unprecedented use of parliamentary power.

The Post Office has been contacted for comment.

A spokesperson said previously: “We take very seriously any concerns raised about cases from before the Horizon system was first rolled out in 1999. Our current understanding is that Capture does not appear to have been ‘networked’, but the software was used by some Postmasters, alongside manual processes, for simplifying accounts before they were manually submitted.

“We are particularly concerned about allegations of prosecutions, and we are looking into this along with all available facts about Capture, including whether shortfalls could have been caused by faults in this software, and the potential impacts if so.

“Given the passage of time, around 30 years ago, and changes to data storage systems since the split from Royal Mail, we do not yet have a complete picture of Capture but are looking into the issue given the concerns raised.”

A government spokesperson said: “As soon as these accusations came to light, we asked the Post Office to investigate the Capture system

“Minister Hollinrake confirmed in Parliament that we have agreed to instigate an independent review of the Capture software.”