The postmaster general has been sacked by the government as the state-run company is reeling from the Horizon IT scandal.
Henry Stanton was told this weekend he would be replaced by business secretary Kemi Badenoch.
“We felt we needed a new leader,” Badenoch said. The Post Office is now understandably under increased scrutiny. With that in mind, we felt that new leadership was needed and we decided to part ways by mutual consent,” she said.
Earlier, a ministry spokesperson told Sky News: “The Secretary of State spoke by telephone today with Henry Stanton, Chairman of the Postal Service (POL).
“Following this call, I can confirm that he has been removed as POL Chairman. An interim replacement will be appointed shortly.
“It's important [the] The Post Office continues to carry out significant work to introduce the necessary operational and cultural changes within the business. ”
A Post Office spokesperson said: “On Saturday afternoon, the Post Office was informed that the Secretary of State for Commerce and Trade had asked Mr Henry Stanton to resign as Postmaster General.” We have been informed by the Government that an interim Chair will be appointed shortly. ”
Mr Stanton, 75, only took over as chairman in December 2022 after a long career on the FTSE board.
The decision to replace him comes as Rishi Sunak seeks to push for new laws to “quickly exonerate and compensate” those affected by the Horizon scandal.
“This is one of the greatest miscarriages of justice in the history of our country,” Mr Sunak told MPs earlier this month. “Those who worked hard to serve their communities had their lives and reputations destroyed through no fault of their own. The victims deserve justice and compensation.”
More than 700 post office managers have been indicted by the Post Office after using flawed accounting software called Horizon to make it appear as though cash was missing from their stores. The story sparked protests across the country and was dramatized in the ITV series Mr Bates vs the Post Office earlier this month.
There have been several sources of tension between the postmaster general and the government in recent months, including a dispute over the appointment of a new independent director, according to people familiar with the story, who spoke to Sky News, which first reported the resignations. It is said that
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At a House of Commons Commerce and Industry Committee hearing in June last year, Mr Stanton was repeatedly questioned by chairman Darren Jones about the £1.6 million bonuses paid to executives in 2021-22. One of the ways bonuses were awarded was dependent on Horizon research. The post office acknowledged the mistake and 33 employees returned their bonuses.
The government's stake in Post Office Limited is controlled by UK Government Investments (UKGI), which also controls the public's stake in Channel 4 and the Met Office.
The post office relies on government funding to operate and has suffered from stiff competition in recent years.
Mr Stanton was previously chairman of insurance company Phoenix Group and high street retailer WH Smiths.
His executive career also included a stint at ITV, while also holding board seats at companies such as BSkyB and Ladbrokes.
The Post Office has been contacted for comment.
