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Post Office Director Steps Back Amid Scandal Investigation

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Saf Ismail, a Post Office director, temporarily relinquishes duties during misconduct probe. Criticizes management culture and executive bonuses as Horizon IT issues persist.

Saf Ismail, a Post Office director appointed to advocate for Horizon scandal victims, has temporarily stepped down from his board duties amid a misconduct investigation. This development comes as the Post Office inquiry enters its final stage, examining organizational practices and executive compensation.

Ismail, who oversees seven branches across Lancashire and Greater Manchester, has been vocal in his criticism of Post Office management. He described a "culture of fear" within the organization and claimed he was targeted for asking challenging questions. The ongoing investigation is reportedly unrelated to the faulty Horizon IT system, which led to the wrongful prosecution of hundreds of subpostmasters.

In 2021, Ismail and Elliot Jacobs became the first subpostmasters to join the Post Office board, representing their colleagues in the wake of the Horizon scandal. This move was part of the Post Office's efforts to demonstrate its commitment to learning from past mistakes and resetting relationships with postmasters.

Ismail criticized Post Office CEO Nick Read for being "very reactive and tactical" and not sufficiently focused on long-term sustainability. He accused senior leaders of having an "unhealthy and unjustified obsession with bonuses and remuneration," despite postmasters not receiving a real-terms pay rise since 2015.

"My considered opinion is that the executive tried to deliver this project at any cost to release bonuses. These arrangements reinforce loyalty to the bonus culture, rather than driving performance or positive behaviours."

Saf Ismail's statement to the inquiry

The Post Office, which has existed in various forms since 1660, is the UK's largest retail network, serving around 17 million customers weekly across 11,500 branches. Despite its size and importance, Ismail claimed that most board directors were excluded from key meetings that could benefit the business.

Ismail's term is set to end in June 2025, and he alleges that he is not allowed to stand for re-election due to being "too challenging, inquisitive and ask[ing] too many awkward questions." This situation reflects ongoing tensions within the organization as it grapples with the aftermath of the Horizon scandal.

The Horizon IT system, introduced in 1999, led to over 700 subpostmasters being wrongly prosecuted between 2000 and 2014, marking one of the UK's biggest miscarriages of justice. A recent YouGov survey of 16,000 subpostmasters revealed that issues with the system are still causing financial shortfalls in branch accounts, with nearly 70% encountering "unexplained discrepancies" since January 2020.

Nick Read, who has been CEO since 2019, recently announced his resignation, effective March 2025. During his tenure, Read oversaw a £58 million settlement to a group of 555 subpostmasters led by Sir Alan Bates. However, claimants reportedly received only £20,000 each after legal fees and litigation costs.

As the Post Office handles over 1.3 billion parcels and 800 million mail items annually, the ongoing issues with the Horizon system and management culture continue to impact its operations and reputation. The organization, which offers over 170 different products and services, faces significant challenges in rebuilding trust and ensuring fair treatment of its subpostmasters.

Thomas Archer

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