Former Camelot boss, Nigel Railton, is set to become the next chairman of the Post Office as the Department for Business and Trade (DBT) seeks to put an end to the controversy surrounding the exit of his predecessor.
Sources have revealed that Mr. Railton, who retired as Camelot boss last year, has been offered the chairmanship of the government-owned company by Kemi Badenoch, the business secretary. The appointment has been approved by Ms. Badenoch and is expected to be announced on Wednesday morning.
Mr. Railton brings with him a wealth of experience from his previous roles at Daewoo, the automotive group, and British Rail. He is expected to take up the position immediately as the pressure mounts to provide compensation to sub-postmasters affected by the Horizon IT scandal.
He will be replacing Henry Staunton, who was informed of his dismissal by Sky News in January. Following his departure, Mr. Staunton made public allegations about the conduct of Ms. Badenoch and Nick Read, the Post Office’s chief executive.
Despite these allegations, the government has declared its confidence in Mr. Read, who was the subject of an independent probe into allegations of bullying. This decision was made despite reports that he had asked for a pay increase and threatened to resign if his demands were not met.
Mr. Railton was chosen for the role due to his extensive experience in the private sector. According to sources, he is “a solid choice for the role, with a sound commercial brain”. Another candidate considered for the position was Neil Sachdev, who currently chairs the state-owned Land Registry.
It is unclear whether Mr. Railton’s appointment will be on an interim or long-term basis. He is currently the chairman of Argentex Group, a London-listed provider of currency management services.
The departure of Mr. Staunton has brought to light concerns about corporate governance at the Post Office. There were allegations that he had attempted to suppress whistleblowing claims about his own behavior. These issues have revealed deep divisions within the Post Office board and the government.
Meanwhile, the government has been working to address the Horizon scandal. Earlier this year, it announced plans to introduce legislation to overturn all convictions in England and Wales related to the Horizon crisis. This bill is expected to become law in the summer.
In addition to handling the repercussions of the Horizon scandal, Mr. Railton will also be responsible for negotiating with Whitehall regarding the Post Office’s future funding requirements. The government’s shareholding in Post Office Limited is managed by UK Government Investments (UKGI), which also oversees the public’s stakes in Channel 4, the Met Office, and other state-owned companies.
The Post Office has been struggling in recent years due to increased competition in the sectors in which it operates. The Department for Business declined to comment on Mr. Railton’s appointment.
