Kemi Badenoch has mentioned former Post Office chair Henry Staunton was being investigated over bullying allegations earlier than his dismissal - as she accused him of searching for "revenge" towards the federal government.
The enterprise secretary advised the Commons that allegations concerning Mr Staunton's conduct, together with "serious matters such as bullying", had been being examined and considerations had additionally been raised about his "willingness to co-operate" with the formal investigation.
Speaking within the Commons, Ms Badenoch mentioned: "Mr Staunton claimed that I told him that someone's got to take the rap for the Horizon scandal and that was the reason for his dismissal," she mentioned. "That was not the explanation in any respect.
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"I dismissed him as a result of there have been severe considerations about his behaviour as chair, together with these raised from different administrators on the board.
"My department found significant governance issues, for example, with the recruitment of a new senior independent director to the Post Office board."
But shortly after Ms Badenoch made her assertion, a spokesperson for Mr Staunton launched a recent assertion hitting again on the "astonishing" claims, saying it was the "first time the existence of such allegations have been mentioned".
"Mr Staunton is not aware of any aspect of his conduct which could give rise to such allegations," they added.
"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 heated alternate got here after Mr Staunton, who was dismissed from his submit final month, claimed in an interview with The Sunday Times that he was advised to delay pay-outs to sub-postmasters forward of the following common election as a consequence of considerations about prices.
Speaking within the Commons, Ms Badenoch mentioned the declare was "completely false" and accused Mr Staunton of searching for "revenge" after he was sacked.
'Pretty apparent to everybody'
Mr Staunton stood by his claims about stalled compensation this night and earlier advised Sky News it "pretty obvious what was really going on" following the federal government denials.
Mr Staunton mentioned there was "no real movement" on the payouts till after the airing of the ITV drama Mr Bates Vs The Post Office earlier this 12 months.
He added: "It was in the interests of the business, as well as being fair for the postmasters, that there was faster progress on exoneration and that compensation was more generous, but we didn't see any real movement until after the Mr Bates programme.
"I believe it's fairly apparent to everybody what was actually happening."
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But Ms Badenoch advised MPs this afternoon there was "no proof by any means that that is true".
"For Henry Staunton to recommend in any other case, for no matter private motives, is a shame and it dangers damaging confidence within the compensation schemes that ministers and civil servants are working so onerous to ship," she said.
"I'd hope that most individuals studying the interview in yesterday's Sunday Times would see it for what it was: a blatant try to hunt revenge following dismissal."
As the confrontation between the pair ramped up, opposition events demanded the federal government launch all paperwork referring to Mr Staunton's sacking to supply readability on the allegations.
In his interview with The Sunday Times, Mr Staunton claimed that when he was sacked Ms Badenoch had advised him "someone's got to take the rap" for the Post Office scandal - and that he was supplied no apology for studying about his dismissal from Sky News.
A readout of a name between the pair, seen by Sky News, exhibits that Ms Badenoch did apologise, however just for the decision being at quick discover.
'Truly surprising'
As properly as denying the claims, the enterprise division additionally revealed a letter despatched to Mr Staunton after his appointment which mentioned one in every of his priorities must be to resolve historic litigation points referring to the Horizon software program.
However, Labour described the allegations as "truly shocking", and mentioned there have been "clear discrepancies" within the accounts of Mr Staunton's quick time as chairman.
Mr Staunton grew to become chairman of the Post Office in December 2022, however he was ousted final month as the federal government reeled from the backlash of its dealing with of the Horizon scandal.
This noticed a whole bunch of sub-postmasters prosecuted due to discrepancies within the Horizon IT system between 1999 and 2015, in what has been referred to as the most important miscarriage of justice in UK historical past.
The airing of Mr Bates Vs The Post Office final month led to widespread outrage and guarantees from the federal government to introduce a brand new legislation to exonerate all victims and velocity up the compensation course of.
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Appearing reverse Ms Badenoch within the Commons, shadow enterprise secretary Jonathan Reynolds mentioned the revelations in The Sunday Times "could not be more serious".
He singled out the declare that the Post Office was "instructed to deliberately go slow on compensation payments" to wrongly convicted sub-postmasters to avoid wasting the federal government cash forward of an election.
He added it could be a "further outrageous insult to a scandal that has already rocked faith in the fairness of the British state", if true.
Mr Staunton claimed he acquired the route from a senior determine in Whitehall, however a spokesman for the federal government mentioned on Sunday it "utterly" rejected the declare and mentioned Mr Staunton was given "concrete objectives" to deal with reaching settlements.
Content Source: information.sky.com
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