Former Post Office chief executive Paula Vennells has said she was wrong to question whether her top lawyer prioritised her duties above the organisation.
The Post Office Inquiry yesterday saw the note typed by Vennells after an explosive meeting with general counsel Susan Crichton as the Horizon scandal threatened to grow bigger.
In a section called ‘reflections’ Vennells wrote following her meeting in 2013 that Crichton was ‘possibly more loyal to her professional conduct requirements and put her integrity as a lawyer above the interests of the business’.
Vennells denied the suggestion she wanted Crichton to make a choice between her integrity and the needs of the business.
‘I have tried to explain. She had two areas of responsibility and I think that she neglected the business side, as she had to all of the time in her job on the legal side. That is what I was trying to say. I was not at all trying to say that she either hadn’t done the legal side or that I thought she shouldn’t.’
Jason Beer KC, counsel for the inquiry said Vennells was trying to suggest that the note was a ‘misunderstanding between you and the keyboard you were typing on’.
Vennells said she had been ‘completely wrong’ and was ‘genuinely very sorry’.
She added: ‘Susan absolutely - and I respect it 100% - had the professional conduct requirements of a lawyer. That was her role as the lead lawyer for the organisation.’
Vennells said neither she nor the Post Office blamed Crichton for bringing on board forensic accountants Second Sight to look into Horizon. Within three months of its interim report, Crichton had been removed as general counsel.
’I don’t recollect anybody saying Susan had brought in Second Sight and that is not what the board saw at the root of the problem,’ added Vennells.
The inquiry heard that Crichton was left sitting on a chair outside the Post Office board meeting where she was due to present an update on the Second Sight meeting. Vennells accepted this ‘must have felt terrible’ for Crichton but said the decision to exclude her was taken by Post Office chair Alice Perkins.
Despite her misgivings, Vennells presented Crichton’s report to the board. Minutes showed the chief executive said the Second Sight review had been ‘challenging [but] it had highlighted some positive things as well as improvement opportunities’. Beer said this was an attempt at spin, which Vennells denied.
The inquiry also heard that head of communications Mark Davies played a prominent role in trying to persuade Vennells not to review cases involving convicted sub-postmasters.
Davies said such a move would ‘fuel the story’ and had the potential to go ‘ballistic’. Beer submitted it was grossly improper for a PR man to dictate legal policy around past convictions.
Vennells said she would not have taken a decision based on one colleague’s advice. The inquiry then saw an email she had sent to Davies in which she said: ‘You are right to call this out. And I will take your steer, no issue.’
The inquiry continues, with Vennells due to give evidence for a third and final day today.
