James Manning/PA
Henry Staunton says he has unearthed the memo that raises serious questions about Kemi Badenoch’s denial regarding Post Office compensation.
The former Post Office chairman has accused the Business Secretary of making “an astonishing series of claims” and mischaracterisations after she told MPs he had spread “made-up anecdotes” following his dismissal.
The row between Staunton and Badenoch deepened after he claimed over the weekend that he had been told to stall compensation payouts for postmasters affected by the Horizon scandal.
In a statement to the Commons, the Business Secretary said there was “no evidence whatsoever” of his account and branded it “a blatant attempt to seek revenge” for his sacking.
She also claimed he was being investigated over bullying allegations before he was fired as chairman, and that concerns were raised about his “willingness to co-operate” with the probe.
But Staunton has now unearthed a memo which suggests Badenoch could have misled parliament with her statement.
According to reports, officials told the ex-Post Office chief that now is not the time for dealing with long-term issues and there needed to be a plan to ‘hobble’ up to the election.
It notes that “politicians do not necessarily like to confront reality” in the run-up to the election and that there was no appetite to “rip off the band aid”.
Badenoch has said allegations relating to Mr Staunton’s conduct, including “serious matters such as bullying”, were being examined and concerns were also raised about his “willingness to co-operate” with the formal investigation.
Speaking in the Commons, she also described it as “so disappointing that he’s chosen to spread a series of falsehoods, provide made-up anecdotes to journalists and leak discussions held in confidence”.
Ms Badenoch said it had confirmed in her mind that “I made the correct decision in dismissing him”.
She told MPs: “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. That was not the reason at all.
“I dismissed him because there were serious concerns about his behaviour as chair, including those raised from other directors on the board.
“My department found significant governance issues, for example, with the recruitment of a new senior independence director to the Post Office board.
“A public appointment process was under way but Mr Staunton apparently wanted to bypass it, appointing someone from within the existing board without due process. He failed to properly consult the Post Office board on the proposal, he failed to hold the required nominations committee, most importantly he failed to consult the Government as a shareholder – which the company was required to do.
“I know that MPs will agree with me that such a cavalier approach to governance was the last thing we needed in the Post Office given its historic failings.
“I should also inform the House that while he was in post a formal investigation was launched into allegations made regarding Mr Staunton’s conduct. This included serious matters such as bullying. Concerns were brought to my department’s attention about Mr Staunton’s willingness to co-operate with that investigation.”
Related: James Cleverly SACKS immigration watchdog amid row over border security concerns
