Former Post Office chairman Henry Staunton lobbied ministers to double the pay of the beleaguered agency’s chief government, it emerged yesterday.
The newest bombshell amid the continued fallout from the Horizon IT scandal was dropped within the Commons by postal affairs minister Kevin Hollinrake.
He advised MPs that Mr Staunton twice lobbied ministers to hike CEO Nick Read’s package deal, which features a base wage of £435,000.
In the yr 2022/23, he additionally loved a £137,000 bonus, taking his package deal to £572,000.
This is regardless of lower than half of the compensation pot for wronged subpostmasters caught up within the Horizon scandal having been paid out to this point.
Former Post Office chairman Henry Staunton (pictured) lobbied ministers to double the pay of the beleaguered agency’s chief government, it emerged yesterday
Nick Read (pictured), the boss of the Post Office, is underneath inner investigation and has allegedly threatened to resign 4 occasions after complaining his wage is simply too low, MPs have been advised
It got here as Rishi Sunak appeared to drop his assist for Mr Read, who it emerged at a choose committee listening to on Tuesday is underneath investigation.
On Tuesday, Downing Street officers stated Mr Sunak had ‘full confidence’ in Mr Read.
But throughout Prime Minister’s Questions yesterday, Mr Sunak stated it might be ‘inappropriate’ to remark whereas an investigation into Mr Read’s conduct is underway.
‘Our focus stays working intently with the Post Office to make sure it delivers justice for postmasters caught up on this historic scandal and that’s the reason we are going to imminently deliver ahead laws that we promised,’ he advised MPs.
In a shift in tone, No 10 additionally refused to say it had the total backing in Mr Read’s management.
The PM’s official spokesman stated: ‘We usually are not going so as to add additional commentary to an ongoing HR investigation.’
Insiders say the investigation into Mr Read will conclude inside days – probably this week – and that his future is hanging within the steadiness.
The nature of the allegations in opposition to him is unclear.
The newest bombshell amid the continued fallout from the Horizon IT scandal was dropped within the Commons by postal affairs minister Kevin Hollinrake (pictured)
Mr Staunton, who was sacked by Business Secretary Kemi Badenoch final month, can be underneath investigation.
He revealed that Mr Read’s conduct was additionally being probed at Tuesday’s explosive listening to of the Commons enterprise committee, the place each males gave proof.
In yesterday’s debate in regards to the listening to, Conservative MP Jane Stevenson requested Mr Hollinrake: ‘In yesterday’s choose committee, Mr Staunton spoke about lobbying for a pay rise for Mr Read, which I do know should have been fairly galling to lots of these subpostmasters.
‘The minister was reported as refusing this pay rise. Can I ask him what kind of pay rise Mr Staunton thought can be a good, equitable settlement at the moment?’
Mr Hollinrake replied: ‘I believe on two events Mr Staunton sought to foyer or did foyer for a pay improve for Mr Read.
‘He sought to double the general package deal of Mr Read on these events.’
The response triggered gasps of disbelief from MPs within the chamber, with some heard muttering ‘Wow’.
Mr Staunton advised the committee on Tuesday that Mr Read stated he was going to resign 4 occasions as a result of he was ‘sad along with his pay’.
Mr Staunton was sacked final month by Business Secretary Kemi Badenoch (pictured)
He additionally used his look to say that he stood by his account that officers requested him to stall compensation funds to wronged subpostmasters.
In an interview with the Sunday Times, he claimed he was advised to do that by the previous prime civil servant on the Business division, Sarah Munby, throughout a gathering in January 2023.
But yesterday Mr Hollinrake stated he ‘strongly rejected’ Mr Staunton’s claims.
He advised MPs: ‘The proven fact that Nick Read is being investigated is proof that nobody is untouchable and the Post Office tradition is altering.
‘An investigation is in fact not proof that allegations are correct. While Nick Read has co-operated absolutely, Mr Staunton tried to dam investigations wanting into his conduct, it was this motion in addition to his try and bypass formal course of to nominate a brand new director to the board, which led the Secretary of State (Kemi Badenoch) to lose confidence in Mr Staunton.’
He added: ‘Mr Staunton has now made a collection of allegations which we strongly reject.
‘He is utilizing the Nick Read investigation to divert consideration from the problems that the choose committee have been discussing about his dismissal, the allegations made are additionally proving to be a distraction from the victims of this injustice.
‘The central allegation is the Government advised him to decelerate compensation funds; not a single individual backed him up on this declare.
‘My officers have been clear that they’ve by no means been instructed to do that, Post Office executives are clear that instruction was by no means handed onto them.’