Ex-Post Office chairman Henry Staunton was told not to ‘rip off the band aid’ with compensation payments

A high civil servant told the ex-Post Office chairman to “hobble” into the common election and not “rip off the band aid” when it comes to compensation payments to subpostmasters, it has been revealed.

After enterprise secretary Kemi Badenoch accused Henry Staunton of mendacity for saying he had been told to stall compensation payouts for postmasters affected by the Horizon scandal, he unearthed a memo wherein he recorded the instruction.

It revealed that Sarah Munby, who was then the enterprise division’s everlasting secretary, warned Mr Staunton that “politicians do not necessarily like to confront reality” and that “now was not the time for dealing with long-term issues”.

The contemporaneous observe of their first assembly on January 5 final 12 months, revealed by The Times, raises questions on Ms Badenoch’s denial of Mr Staunton’s declare, in addition to her choice to accuse him of mendacity.

It emerged after she told the Commons there was “no evidence whatsoever” of his account and branded it “a blatant attempt to seek revenge” for his sacking.

The observe may even add to stress on the authorities to set a deadline date for payments to wronged postmasters, which enterprise and commerce committee chairman Liam Byrne has referred to as for.

It got here as Ms Badenoch was plunged right into a separate political row over a declare she is engaged in commerce talks with Canada, which the nation says do not exist.

The enterprise secretary told MPs “explicitly” final month that talks with Canada had been “ongoing”, as a March cliff-edge for British carmakers approaches.

But the Canadian excessive commissioner to the UK, Ralph Goodale, wrote to the House of Commons enterprise choose committee to insist the talks have not occurred, the Financial Times reported.

The row between Mr Staunton and Ms Badenoch erupted when he gave an explosive interview to the Sunday Times wherein he stated he was told to “stall” on compensation for subpostmasters forward of the common election.

Staunton, who was ousted final month after lower than a 12 months in the position, stated he had been told to enable the Tories to “limp into” the vote.

But Ms Badenoch hit again accusing him of “lies” and stated he had been faraway from his publish due to “concerns over his conduct”.

She additionally claimed he was being investigated over bullying allegations earlier than he was fired as chairman, and that considerations had been raised about his willingness to co-operate with the probe.

The Horizon scandal noticed greater than 700 postmasters handed prison convictions between 1999 and 2015 as Fujitsu’s defective Horizon system made it seem as if cash was lacking at their branches.

Mr Staunton’s observe, as reported by The Times, recounts him telling Ms Munby a month after taking his publish that he “had been on over a dozen public company boards and not seen one with so many challenges”.

She was “sympathetic” with his arguments, however stated that “politicians do not necessarily like to confront reality” and in the run up to a common election “ there was no appetite to ‘rip off the band aid’”.

The observe suggests Ms Munby was referring to the total funds of the Post Office, however Mr Staunton stated the two largest spending gadgets had been compensation payments and changing the Horizon system.

The Liberal Democrats demanded an investigation by the authorities’s ethics advisor, suggesting Ms Badenoch might have breached the ministerial code.

Deputy chief Daisy Cooper stated: “Time and once more Conservative ministers have undermined the integrity of our politics. Now, this row embroiling Kemi Badenoch raises a complete collection of recent questions to which we urgently want solutions.

“If Badenoch misled Parliament then she clearly breached the Ministerial Code.

“Subpostmasters – who’re at the coronary heart of this complete scandal – deserve justice, monetary redress and the reality.”

Ms Munby reportedly denies telling Mr Staunton to maintain again on compensation for sub-postmasters.