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The Post Office’s chair has been removed from his position due to the government’s dissatisfaction with the Horizon IT scandal.
After only one year on the job, Henry Staunton will be leaving due to conflicts with government officials. His resignation came after a discussion with Kemi Badenoch, the secretary for business and trade, on Saturday.
Ms Badenoch expressed the belief that there was a necessity for fresh leadership at the Post Office, following the news that the current chairman, Mr Staunton, would be resigning.
Business secretary Kemi Badenoch spoke to Henry Staunton before his departure was announced
The Business Secretary stated that the Post Office is currently facing increased scrutiny and as a result, there was a need for new leadership. Both parties have mutually agreed to part ways.
In the past few weeks, the government-owned organization has faced significant scrutiny after a widespread outrage over what Rishi Sunak referred to as “one of the most unjust incidents in our country’s history”.
Fujitsu’s Horizon computer system was responsible for numerous subpostmasters being charged with theft and falsifying financial records by the Post Office.
The prime minister stated that he would introduce a bill to clear their names following the airing of an ITV show, “Mr Bates vs the Post Office,” which exposed the scandal.
The government now estimates that the total amount of compensation paid to subpostmasters will exceed £1 billion.
The ITV series ‘Mr Bates vs the Post Office’ brought attention to the scandal.
The disagreement between Mr Staunton and the ministers is said to stem from the bonus received by chief executive Nick Read, which was tied to the Post Office’s involvement in the Horizon investigation.
A representative from the Department for Business and Trade informed Sky News that the secretary of state had a conversation with Henry Staunton, the chair of Post Office Limited (POL).
After this meeting, we can confirm that he has been removed as the chair of POL. A temporary replacement will be chosen soon.
“It is crucial for the Post Office to continue their important efforts in implementing the required operational and cultural modifications within the company.”
According to sources at Sky, Mr. Staunton’s departure was not directly linked to the Horizon controversy.
Labour MP Kevan Jones, who is currently running for office, expressed the need for the government to clarify their decision to dismiss the Post Office chair. He believes this should be the first step in a series of changes within the top leadership of the Post Office. Jones also raised concerns about the capability of the board and senior management in handling the severity of the scandal.
A temporary chairperson will be selected soon, followed by the initiation of the search for a permanent replacement.
Lord Arbuthnot, a member of the Conservative Party, who had previously advocated for the subpostmasters’ rights, has declared that he will not be seeking the position of new chair. He stated, “There is a clear necessity for significant shifts in both culture and governance, which can only be achieved by someone with a proven track record in implementing such changes.”
In September 2022, Kwasi Kwarteng, the former business secretary, selected Mr Staunton to serve as the chair.
He previously held the position of chair at WH Smith, a retail chain.
The official statement announcing his new role stated that he will “guide the board of directors as the company moves forward, while also addressing and resolving past issues related to the Horizon IT conflict”.
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