Post Office: 'Shortfalls' in Capture system sparks second IT scandal warnings

Around 40 former sub-postmasters claim they were wrongly accused of theft due to errors in the Capture system as ITV News' Chloe Keedy reports

The Post Office is potentially facing its second major IT scandal as a report warned of failings in software that predated the Horizon system.

The software was also to help sub-postmasters with reporting their finances and was rolled out in 1993.

Around 40 former sub-postmasters claim they were wrongly accused of theft due to errors in the Capture system.

An independent report by Kroll, a risk advisory and financial solutions firm, concluded there was "a reasonable likelihood that Capture could have created shortfalls for sub-postmasters".

"Knowledge of Capture bugs and related issues was not formally shared between the Capture development team and Post Office Limited control functions (for example legal, audit and investigations)," the report said.

"Kroll has not identified evidence showing issues with the Capture software resulting from bugs were regularly taken into account by Post Office Limited’s audit, investigation and legal teams when conducting their work.

"Given this, we consider that, based on available evidence, there was a reasonable likelihood that Capture could have created shortfalls for subpostmasters."

The report did not comment on the criminal convictions from the Post Office during the time Capture was used.

Kroll found that 13.5% of all branches may have used Capture.

The report also said that sub-postmasters felt pressured by network and area managers to use the system.

Plus, legal teams had not been investigating potential "bugs or errors" in the system.

Kroll further raised concerns about the remit and effectiveness of the Capture Helpdesk.

Post Office minister Gareth Thomas said he was "horrified" by the issues with the Capture system and thanked affected postmasters for bringing the problems "to light."

"Today, I met with some of the postmasters who used the Capture system, and I thank them for their honesty and bravery in speaking about its impact on their lives and livelihoods," Thomas said.

“The independent report... sheds further light on how the faults with the Capture system may have impacted the operation of post offices who used it.

“Once postmasters and others have had time to digest the report, I look forward to hearing their views."

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He added that he will work closely with the government and colleagues to thoroughly examine the report and consider necessary actions, with the next steps set to be announced in December.

A Post Office spokesperson said: “We have, and will continue to, fully support the independent forensic accountancy investigation established by the Government into the Capture software.

"We have been very concerned from the outset about the reported problems relating to the use of the Capture software in the 1990s and are sincerely sorry for past failings that have caused suffering to postmasters."

Hundreds of sub-postmasters were wrongfully convicted of stealing from the Post Office due to errors in the Horizon system, which led to one of the biggest miscarriages of justice in British history.

Horizon was used between 1999 to 2015, but the new report looks at the period before that, where complaints about errors with software were still common.

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