A Post Office lawyer tried to arrange compensation to the widow of a sub-postmaster in a way that would ensure she never disclosed the details of what happened, the public inquiry into the Horizon scandal heard today.

Cheshire sub-postmaster Martin Griffiths died in 2013 when he stepped in front of a bus after years of being pursued for shortfalls in his branch accounts.

The inquiry heard today that Post Office director Angela van den Bogerd arranged for a payment of £140,000 to be offered to the family, with the caveat that they signed a non-disclosure agreement not to share details of the factors behind his death.

This figure was being offered to all sub-postmasters leaving the business at the time as part of a closure programme. Griffiths’ daughter wrote to Bogerd after the offer was made to her mother saying it was ‘simply disgusting’.

The family had a live claim through the victims’ mediation scheme but the discretionary payment was conditional on this claim being dropped completely.

Bogerd wrote to Griffiths’ widow saying that acceptance would come with a waiver that any claims would be brought to a close.

Inquiry counsel Jason Beer KC said the ‘last thing’ the Post Office wanted was for the bad publicity of the Griffiths claim being brought to light.

Bogerd said: ‘That was never my consideration. My consideration was to support the family.’

The inquiry was then taken to an email in January 2015 from Post Office litigation solicitor Rodric Williams to Bogerd setting out the draft settlement on which the compensation payment was being resolved.

Williams stated that the agreement was drafted to resolve all claims against Post Office Limited so that the organisation would not be able to seek recovery of any outstanding losses in the branch accounts.

He added that Griffiths’ widow had agreed to staged payments ‘which we asked for as an incentive to Mrs Griffiths maintaining confidentiality… if Mrs Griffiths were to breach confidentiality we could stop any further payments but not recoup sums already paid’.

Bogerd said she had never discussed the idea of an ‘incentive’ with Williams, who had drawn up the settlement agreement.

Beer said the Post Office held a ‘sword of Damocles’ hanging above the family that would not get any more money unless they kept quiet. Bogerd said Williams had no instructions to do this, but the NDA did appear in the final settlement.

Beer asked: ‘Did you see anything unsavoury in using money as a way of ensuring Mr Griffiths' case was hushed up?’

Bogerd said: ‘It didn’t even enter my head that we would be going down that road. This was the first I heard of it from Rodric and the fact that he said it was accepted, I just allowed it to continue… I went with what he suggested.’ She added: ‘My concern at the time was facilitating that payment.’

The hearing continues.