Former Post Office minister Ed Davey has expressed his belief that he was lied to about significant flaws in the Horizon IT system. Davey made these claims during an inquiry into the Horizon scandal, where numerous sub-postmasters were wrongly blamed and prosecuted for losses attributed to bugs in Fujitsu's faulty IT system between 1999 and 2015.

Speaking at the inquiry, Davey stopped short of directly accusing Post Office executives of lying to him during his tenure from 2010 to 2012. However, he asserted that "someone senior must have known the truth at some stage" about the system's flaws. Davey argued that former chief executive Paula Vennells and former managing director David Smith were responsible for passing false information to the government.

While Davey did not accuse Vennells and Smith of personal deception, he emphasized that someone senior within the Post Office must have been aware of the flaws. He stated, "I now know I was being lied to... what they told my officials was not true."

During the inquiry, Davey acknowledged that he could not determine the intentions of senior Post Office executives or how they received the information. However, he insisted that this deception must have occurred at a higher level within Post Office Limited.

Davey's testimony also revealed that Post Office Limited misled the shareholder executive and ministers. When asked about responsibility within Post Office Limited, Davey pointed to senior executives, who he assumed would be aware of the flaws. Davey expressed hope that the ongoing inquiry would uncover who exactly knew about the system's defects.

Labour MP Pat McFadden, who held the post from 2007 to 2010, also appeared before the inquiry. He admitted to trusting the Post Office's assertions that the Horizon system was robust, writing letters to MPs assuring them of its reliability and court validation. McFadden explained his trust was based on the emphatic nature of the Post Office's responses.

Former sub-postmaster Lee Castleton, who faced bankruptcy due to the Post Office's erroneous claims, supported the notion that McFadden had trusted the advice provided. Castleton argued that the Crown Prosecution Service, rather than the Post Office, should have been responsible for prosecutions.

The inquiry also revealed letters from MPs expressing concerns about random flaws in the Horizon system that led to financial discrepancies for sub-postmasters. However, the stock response from McFadden at the time emphasized the Post Office's authority over operational matters and the government's role in overall strategy.

As the inquiry continues, it aims to uncover when blind faith in the Horizon system at the Post Office turned into intentional deception. McFadden acknowledged the severe consequences for sub-postmasters, expressing regret over not having asked more questions. He defended his actions based on the Post Office's strong assertions and the use of court judgments to validate the system.

The inquiry will now focus on establishing who knew about the flaws in the Horizon system, shedding light on the actions and accountability of senior management within Post Office Limited.