Kemi Badenoch has accused a former Post Office chairman of lying in a row over the Horizon scandal.
Henry Staunton, who was sacked by the Business Secretary last month, alleged he was told by a senior civil servant to slow down spending on compensation to subpostmasters to allow the Tories to “limp into” the next election.
In a newspaper interview he claimed Ms Badenoch told him that “someone’s got to take the rap” for the miscarriage of justice and that he discovered his sacking following a phone call from Sky News.
But Mrs Badenoch said the comments were a “disgraceful misrepresentation” of the reasons he was ousted.
In a lengthy on social media platform X, she said: “Henry Staunton had a lack of grip getting justice for postmasters. The serious concerns over his conduct were the reasons I asked him to step down.
“That he chose to run to the media with made-up anecdotes and a series of falsehoods, confirms I made the correct decision.”
The Cabinet minister said her call with Mr Staunton “was with officials” who took a “complete record”.
She added: “He has given an interview full of lies about our conversation during his dismissal.
“The details will emerge soon enough as I won’t let the matter rest here, but will be discussing with (government) lawyers.”
Ms Badenoch is expected to make a Commons statement about the matter on Monday.
Mr Staunton, who took up the role in December 2022, used an interview with the Sunday Times to suggest the alleged request to hold up payments was linked to concerns about the cost of compensation heading into the election.
He said: “Early on, I was told by a fairly senior person to stall on spend on compensation and on the replacement of Horizon and to limp, in quotation marks – I did a file note on it – limp into the election.
“It was not an anti-postmaster thing, it was just straight financials. I didn’t ask, because I said ‘I’m having no part of it – I’m not here to limp into the election, it’s not the right thing to do by postmasters’.
“The word ‘limp’ gives you a snapshot of where they were.”
More than 700 branch managers were prosecuted by the Post Office between 1999 and 2015 after faulty Horizon accounting software made it look as though money was missing from their shops.
Hundreds of subpostmasters and subpostmistresses are still awaiting compensation despite the Government announcing that those who have had convictions quashed are eligible for £600,000 payouts.
The miscarriage of justice has been pushed into the public eye by a major ITV drama.
A Government spokesperson said: “We utterly refute these allegations. The Government has sped up compensation to victims and consistently encouraged postmasters to come forward with their claims.
“To suggest any actions or conversations happened to the contrary is incorrect. In fact, upon appointment, Mr Staunton was set concrete objectives, in writing, to focus on reaching settlements with claimants – clear evidence of the Government’s intent.
“The Secretary of State asked Henry Staunton to step down as chairman of the Post Office because a change in leadership was needed.”
