Vennells took advice not to review cases as it would end up ‘front page news’

The probe was shown an email exchange between Ms Vennells and then director of communications Mark Davies in July 2013 in which she said she would “take your steer” after he said looking at all past cases would be “in media terms… very high profile”.

Ms Vennells agreed that had the Post Office decided to review all prosecutions of false accounting, it “may well have” avoided the “lost decade” until miscarriages of justice involving subpostmasters were discovered.

The public gallery at the inquiry, made up of mainly subpostmasters, groaned loudly after Ms Vennells said she did not remember if she took the “advice of the PR guy” to review past prosecutions.

After chairman Sir Wyn Williams intervened, Ms Vennells continued: “As I tried to say before, what we were working to at this stage was numbers of cases going through a scheme, and a scheme that was going to be opened up to anybody who wanted to come forward.

“I understand how this reads, but I don’t recall making any conscious decision not to go back and put in place a review of all past criminal cases.”

After Ms Vennells asked him for his thoughts on whether the business should look at cases going over 5-10 years, Mr Davies said: “If we say publicly that we will look at past cases – and whatever we say to JA (Lord Arbuthnot) or JFSA (Justice for Subpostmasters Alliance) will be public – whether from recent history or going further back, we will open this up very significantly, into front page news.

“In media terms it becomes mainstream, very high profile.”

Ms Vennells conceded that the view of Mr Davies was a “grossly improper perspective”.

In her response to Mr Davies’ email, Ms Vennells said: “You are right to call this out. I will take your steer.”

Referring to her initial suggestion of reviewing past cases, Mr Beer said: “Do you agree your nascent idea here of a review of all prosecutions of false accounting, if it had been carried into effect, may have avoided a lost decade until miscarriages of justice were discovered?”

Ms Vennells paused for a short moment before responding: “It may well have done. It may well have done.”

Mr Beer asked: “Do you think the failure to carry into effect the idea that you posit here was a missed opportunity?”

The former Post Office boss replied: “At the time I and the board and everybody else involved in… what took place after this particular point felt that that was completely the right way to do this. We were concentrating on individual cases.”

The 65-year-old ordained priest was answering questions as part of her second day of evidence to the inquiry after an emotional first day which saw her become visibly upset on a number of occasions and break down in tears twice.

She apologised for her actions during the scandal 23 times during her first day of evidence, according to the inquiry’s official transcript.

During her second day of evidence, she claimed she had no inkling subpostmaster convictions were unsafe in 2013 despite a “concerning” email from lead campaigner Alan Bates.

Mr Bates told Ms Vennells that he was “surprised” she had not offered to meet him “bearing in mind what has been discovered so far” – referring to the work of independent forensic accountants Second Sight.

Ms Vennells also said the Post Office did want “reassurance” the Horizon system could be relied upon but denied seeking to persuade Second Sight to come to a conclusion favourable to the company.

She told the probe she was unaware there was a view among the company’s lawyers that reviewing a large number of cases might “open the floodgates” to damages claims by subpostmasters.

Forensic accountants from Second Sight were drafted in to independently review cases involving the Horizon system in 2012.

The former Post Office boss told the probe: “There is no way I would have wanted to persuade Second Sight on something they were not prepared to say and I don’t believe Second Sight would ever have agreed to that.”

Mr Bates emailed Ms Vennells on May 21 2013, saying he had “little doubt that it is now feasible to show that many of the prosecutions that the Post Office have pressed home should never have taken place”.

Mr Beer asked: “Would you have been very concerned reading an email like this that the person representing a key stakeholder, JFSA, was saying that the prosecutions, and many of them, that the Post Office had brought ought never to have taken place?”

She replied: “I was concerned to get the email from Alan, certainly.”

Mr Beer then said: “Had you been given any inkling that anything had emerged that might undermine the safety of convictions?”

Ms Vennells responded: “No.”

More than 700 subpostmasters were prosecuted by the Post Office and handed criminal convictions between 1999 and 2015 as Fujitsu’s faulty Horizon IT system made it appear as though money was missing at their branches.

Hundreds of subpostmasters are still awaiting compensation despite the Government announcing that those who have had convictions quashed are eligible for £600,000 payouts.