Post Office boss accused of misleading MPs over £15k-a-month PR advice

Mr Read’s omission about TB Cardew’s ongoing advice has angered members of the Business and Trade Committee – PRU/AFP via Getty Images

Post Office chief executive Nick Read has been accused of misleading MPs over the use of PR advisers after failing to disclose a £15,000-per-month contract with a City firm.

Mr Read denied that the Post Office had hired communications advisers to handle the fallout from the ITV drama Mr Bates vs The Post Office after he was asked by members of the Commons’ Business and Trade Committee last month to disclose details of any new PR advisers and their fees.

However, the Post Office has been paying strategic communications firm TB Cardew £15,000 a month to support the group and its bosses during the crisis.

Mr Read’s omission about TB Cardew’s ongoing advice and the fees paid has angered the committee’s MPs who are trying to get to the bottom of the Horizon scandal, one of Britain’s biggest miscarriages of justice.

Jonathan Gullis MP, the committee member who originally asked Mr Read to disclose the PR advice, said TB Cardew’s role appeared “contrary to what the CEO told Parliamentarians”.

Jonathan Gullis, the MP who questioned Mr Read about PR advice, called the revelation ‘startling’ – Leon Neal/Getty Images Europe

“This startling revelation appears to show that the committee was at least misled by the chief executive of the Post Office,” he said.

“I will now work with my colleagues from the Business and Trade Committee to look into ways we can ascertain the truth.”

Liam Byrne, chairman of the committee, added: “What the Post Office needs to do is put every ounce of their resources into sorting out payments to sub-postmasters – not trying to spin their way out of scandal.”

TB Cardew is billed as a “strategic, financial corporate communications” and “public affairs agency”.

Founded 30 years ago, it advises many large businesses and FTSE 100 clients and also offers “crisis management” services for distressed companies.

TB Cardew clinched a four-year PR contract with the Post Office two years ago. The contract, which runs until 2025, was worth around £7,500 per month at a flat rate. However, it is understood payments have been “front-loaded” amid the crisis.

A Post Office spokesman said: “Post Office has not hired any PR agencies since the ITV drama aired.”

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It declined to comment on the fees. TB Cardew also declined to comment.

Mr Read previously engaged TB Cardew as chief executive of the convenience store mutual Nisa.

The Horizon scandal saw more than 900 sub-postmasters prosecuted – TOLGA AKMEN/AFP

The Horizon scandal saw more than 900 sub-postmasters prosecuted after shortfalls appeared in their financial accounts. Some sub-postmasters served time in prison over the shortfalls.

The software, which was developed by Japanese technology company Fujitsu, contained errors which created false shortfalls in accounts which did not exist.

More than 4,000 may be eligible for compensation due to the scandal under a scheme arranged by the Government.

A consumer sector veteran, Mr Read joined the Post Office in 2019 having led Nisa until its takeover by the Co-op.

The fallout between Mr Read and MPs comes ahead of another crunch session at the committee on Tuesday.

Mr Read will face further questions alongside former Post Office chairman Henry Staunton.

Mr Staunton has been embroiled in a row with the Government over his sacking.

The former WH Smith chairman has accused senior civil servants of demanding a delay to payouts for sub-postmasters ahead of the next general election amid fears they would cost too much.

Business Secretary Kemi Badenoch has hit back at the claims saying Staunton had “changed his story” on the issue.

The committee yesterday released a letter from Mr Read detailing knowledge about the sacking of Mr Staunton.

In the letter, Mr Read said: “For the avoidance of doubt, I personally have never been instructed to delay on compensation, nor have any of my leadership team to my knowledge – and have worked closely with Government officials and Ministers to deliver compensation as quickly as we can.”

Minutes published ahead of Mr Staunton’s appearance show that the Post Office board complained last year that they were spending too much time on “historical issues” such as the Horizon scandal.

Another document revealed that a subpostmaster on the board had described the Post Office’s investigations department as “out of control” and that they saw subpostmasters as “on the take”.

Kevin Hollinrake, the post office minister, said all wronged subpostmasters would have their convictions quashed by July and would receive compensation by the end of the year.

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