Kemi Badenoch stand-off with ex-Post Office boss escalates as he defends interview branded ‘full of lies’

The row between former Post Office boss Henry Staunton and business secretary Kemi Badenoch ratcheted up another notch, as the row over compensation for sub-postmasters continues.

This follows a major scandal centred around the Post Office’s handling of the Horizon scandal, whereby countless sub-postmasters were wrongly accused and imprisoned of fraud, due to a faulty accounting system.

Post Office bosses have been under pressure to resolve outstanding compensation, and the government has been urged to ensure convictions are overturned swiftly.

In a letter to Badenoch sent late last night, he refuted a number of her explosive comments about an interview he gave with the Sunday Times.

The article suggests he was told by a top civil servant to stall “compensation payments to Horizon victims so the government could “limp into the election” with the lowest possible financial liability.”

The interview led to a fierce reaction from Badenoch, as she claimed it was “full of lies”. Yesterday in Parliament, Badenoch said the claims were “completely false” and “a blatant attempt to seek revenge following dismissal” after she sacked him.

“There would be no benefit to us whatsoever of us delaying compensation.

“This does not have any significant impact on revenues whatsoever – it would be a mad thing to even suggest.”

She claimed there was  “no evidence whatsoever” he was told to stall payments.

Staunton, in a letter to Badenoch he said he “stands by this comment” about calls to “limp the election” which he said “he recorded at the time in a file note which he emailed to himself and to colleagues and which is therefore traceable on the Post Office Server.”

He also said he “stands by his characterisation of the conversation with the Secretary of State in which he was informed of his dismissal.”

Badenoch also hit back saying “reaching payment settlements with victims of the Horizon scandal was a priority when he took the role”, posting the letter on social media from his appointment.

This comes after Badenoch told parliament that along with allegations he delayed compensation payments, he was also under investigation for misconduct, including bullying charges.

He responded, “with regard to allegations of bullying behaviour, this is the first time the existence of such allegations have been mentioned, and Mr Staunton is not aware of any aspect of his conduct which could give rise to such allegations. They were certainly not raised by the Secretary of State at any stage and certainly not during the conversation which led to Mr Staunton’s dismissal. Such behaviour would in any case be totally out of character.”

The department declined to comment but pointed towards letters published, including correspondence between the secretary of state and Mr Staunton.