MPs from the cross-party Business and Trade Committee called for the Government to speed up paying compensation for victims of the Post Office Horizon IT scandal
The Post Office must be removed from the Horizon IT scandal compensation process, MPs have warned in a scathing report into "abject failure" to secure justice.
The cross-party Business and Trade Committee demanded the move days after former postmaster Alan Bates pleaded with ministers to get on with it. The report said the Post Office is “not fit for purpose to administer any of the schemes required to make amends”.
It says victims have no confidence in the firm that “ruined the lives of innocent sub-postmasters” and hit out at its chaotic leadership.
Hundreds of postmasters are still waiting for compensation despite the promises of ministers, and lawyers warned some could still face waits of up to two years. MPs heard the final bill for taxpayers likely to top £1billion - with no deal yet in place over how much software firm Fujitsu will pay.
It comes after Post Office hero Mr Bates last month pleaded with the committee to "get on and pay" victims of the Horizon scandal. Mr Bates, who has been leading the campaign for justice for two decades, told MPs: "There's a lot of distractions, a lot of other things brought up, thrown up all the time - but just get on and pay people."
He revealed that he had considered getting all the former subpostmasters involved in the initial High Court case to "stand as MPs when the next election comes", adding: "Then we'll sort it out once and for all."
Questioned on whether he believed the Government had got a grip of the process, Mr Bates said: "No, I'm afraid not - it's very disappointing. This has been going on for years, as you well know, and I can't see any end to it."
The Post Office said 1,000 more claims have been received since ITV drama Mr Bates Vs The Post Office was screened in January. Mr Bates, who was played by Toby Jones in the series, told the cross-party Commons Business Committee that the Post Office should be sold.
He said: "My personal view about Post Office is it's a dead duck and it has been for years, and it's going to be a money pit for the taxpayer in the years to come. You should sell it to someone like Amazon for £1, get really good contracts for all the serving subpostmasters and within a few years you'll have one of the best networks around Britain."
Meanwhile at the same hearing in February, former Post Office chairman Henry Staunton, who has been locked in a bitter war of words with Business Secretary Kemi Badenoch, doubled down on his claim he was told to slow down payments.
Ms Badenoch has accused him of lying, but he told the committee he'd been made a "scapegoat". Mr Staunton, who was addressing the committee under oath, said he denied making "politically incorrect" remarks.
He said allegations had come to light during a probe into chief executive Nick Read. Mr Staunton also claimed that Mr Read had told him he planned to resign because he wasn't being paid enough - but former Business Secretary Grant Shapps refused to give him a raise.
In March last year it emerged Mr Read's salary was £415,000, and he was given a £455,000 bonus the following year, some of which he later returned.
The Horizon IT system ruined the lives of hundreds of Post Office workers when it mistakenly made it look like money was missing from their branches. Postmasters were wrongly blamed for the shortfalls and made to cover the losses, with more than 900 convicted including some who were put in prison.