Weekend essay
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Ethics
Justice
8 min read

The Post Office scandal: why truth matters

Lawyer Alex Stewart analyses the Post Office scandal for the lessons it teaches on our missing morals.

Alex Stewart is a lawyer, trustee and photographer.  

A man, dressed in a suit and anarak, stands in front of a law court.
Toby Jones plays the eponymous Mr Bates in ITV Studios dramatisation.

The reaction to ITV's 4-part dramatisation of the The Post Office Horizon story has been profound. It managed to stir up huge public sympathy for the sub postmasters and has galvanised the Government into action. The story has also tapped into deep wells of moral outrage at a time when trust in our institutions and corporations is the lowest in living memory. It’s a tale of failure to take responsibility. It’s a tale that shows the truth matters. 

A failure to take responsibility 

What seems to have enraged us most is the collective moral failure over many years of those in positions of power. They either deliberately covered up the problems with the Post Office’s Horizon IT system, by withholding information about known faults, or simply ignored them.  The sense of disbelief has been compounded by the apparent inability, so far, to pin the blame on any one person or group of people. The Post Office’s ex CEO, Paula Vennells, has handed back her CBE but it seems she was only the tip of an iceberg of obfuscation and prevarication.   

What emerges is a pattern of behaviour that moral philosophers call moral diffusion. It is also called the ‘bystander effect’, so-called after a case in which a woman was attacked in New York in the presence of a large number of people who knew that she was being assaulted but failed to come to her rescue as they all saw it as someone else’s problem. 

I witnessed an example of this the other day in London at a busy pedestrian crossing. A man with an angle grinder was cutting through a bicycle lock.  As the sparks flew, pedestrians looked at each other for reassurance, as if to ask - is this ok?  Was he shamelessly stealing the bicycle, or had he been sent by the council to remove a long-abandoned bicycle?  No one knew and no one intervened. 

The instinct to shirk responsibility seems to be hardwired into us, part of our fallen nature.  It all started with Adam and Eve. Embarrassed and ashamed they hide, only to discover you cannot hide from God. And when they are discovered, both deny personal responsibility, saying in effect “it wasn’t me”.  

Later we have the story of Cain killing his brother Abel. Cain doesn't deny he has done something wrong, he simply denies he had any responsibility for his brother at all.  He asks why he should have any concern for anyone beyond himself. ‘Look after Number One’ Is the voice of Cain throughout the ages. 

Why is this failure of leadership such an effrontery to us? Because we instinctively recognise that leadership is not about lording it over others. 

The Government has promised to hold to account those responsible for the scandal.  Perhaps the roving searchlight of the inquiry will succeed in identifying the human culprits? In the meantime, executives and politicians are scrambling over themselves to deny responsibility, typified by the response of Sir Ed Davey who has taken the art of the non-apology to a new level. The honourable exception, among the political class, is Lord Arbuthnot who as an MP was both tireless and fearless in campaigning for justice for the sub-postmasters.     

Why is this failure of leadership such an effrontery to us? Because we instinctively recognise that leadership is not about lording it over others, hiding behind other people’s decisions or passing the buck, it is about taking responsibility.  In practice we do not live by the philosophy presented by Glaucon in Plato’s Republic, that justice is whatever is in the interest of the stronger party.  Nor are we willing to live in a Darwinian world where in the struggle for supremacy there is no need for the powerful to look out for the weak simply because they are powerful.    

There is a fascinating moment in the story of Moses in the book of Exodus when he notices an Egyptian official beating one of the Israelite slaves. He sees that no one else is willing to intervene and he gets involved, at some personal risk, and in so doing marks himself out as a leader.   

Leadership is born when we become active not passive, when we decide that something is wrong and we need to take steps to put it right. These are the people who make the world a better place because doing nothing, though it may not be illegal, is not morally neutral. Failing to act to prevent a wrong does not simply leave a vacuum, it gives permission for evil to flourish. Or as Burke put it “The only thing necessary for the triumph of evil is for good people to do nothing.”   

Alan Bates could have resigned himself to his fate, but instead has doggedly pursued justice for 20 years.  

We all long for leaders who will lead responsibly and not out of self-interest, who will not turn a blind eye to the suffering of the powerless or blame others when asked to explain why they did nothing.   

This is especially so in the church which holds itself to a higher standard and should know better. The ITV series quite deliberately dwells on the fact that Paula Vennells was, as well as being CEO of the Post Office, ordained in the Church of England.  

The truth matters 

Key to the success of the sub-postmasters case was the ability to get to the truth, a task made very difficult by the fact that the Post Office held all the records needed to prove that it was the Horizon system, not the sub-postmasters, that was at fault.   

Being able to determine the truth of a matter is essential to how we lead our lives, and especially in matters of justice.  The version of events presented by the Post Office turned out to be false, but once this false version was on record, the reputations of otherwise upstanding pillars of local communities were destroyed overnight.  The public shame and the human cost of being cruelly and wrongly labelled a liar and thief is powerfully brought home by the TV series, as is the relief of vindication. 

We do not in reality live our lives in a postmodern universe where truth is seen as relative (Oprah’s infamous “What is your truth?” moment), or nothing more than a claim to power.  We know on a daily basis the power of the truth to set us free, from false accusations or a guilty conscience, and how much it stinks when we are deceived - especially when it is by the powerful.  

A lack of integrity 

During the Cold War, there was a running joke that the best indicator of whether a country operated as a one-party state was whether it had the word “Democratic” in its name.    

We have become used to the same kind of dissonance between image and reality, whether it is the smiley telegenic people in a company’s glossy videos (actors? library footage?) or an impossibly worthy values statement.

I was once part of group of employees invited to revamp our employer’s declared values. We were presented with a set of aspirational statements that described a culture that was akin to the Garden of Eden and a working environment that bore no relation to the reality.  When I pointed this out, I was not invited back.   

In public Paula Vennells was insistent that the Post Office cared about its people while out of the spotlight those people were being horribly mistreated.   

It isn’t always so, but how can so many organisations live with such glaring contradictions?  Or is it that boards become so disconnected, by geography or otherwise, from the organisations they run and the cultures they preside over that they actually believe the image over the reality?  

"Computer says no"

One of the more terrifying issues raised by the Post Office scandal is how the principle of the presumption of innocence was abandoned.  How come the testimony of hundreds of innocent people was rejected in favour of a faulty computer system’s data?  

Part of the problem is that the English courts regard computer records as reliable unless the defendant can show otherwise. Since 1999, the burden of proof - and with it the presumption of innocence – has effectively been reversed: the defendant is guilty unless he can show that the computer records implicating him are wrong.   

The notion that we cannot challenge a computer that “Says No” is a real problem. As the Post Office scandal shows, computer software is often riddled with bugs. After all, it is written by fallible human programmers. It also became clear that the Horizon system’s data could be manipulated remotely - and without the knowledge of the sub postmasters.  

To assume that computer generated evidence is infallible is a very dangerous assumption in a world increasingly dominated by machines and, more recently, artificial intelligence.   

A very human story 

The sub-postmasters in the Post Office case were not machines or assets.  The ITV drama succeeded in doing what no legal or investigative process can adequately do, it humanised the victims. Despite all the PR talk about caring for its people, the Post Office only cared about its own reputation, and in the process of trying to save itself lost its humanity and its reputation.   

The drama successfully stripped away all the lifeless procedural, technical and legal terminology to reveal a very simple, devastatingly human story that needed to be told. In Alan Bates’ words: “the Post Office stole my livelihood, my shop, my job, my home, my life savings and my good name”.   

This Post Office story has struck a chord because it reminds us of is what is increasingly missing in public life - leadership, accountability, respect for the truth, integrity and humanity. 

Watching the ITV drama, I was frequently moved to tears and cheered at the end. We root for the victims out of solidarity, as if we ourselves had been wronged.  

The Christian understanding of sin identifies it as a public not a private matter, as it infects the whole body politic.  This is why the case name given to a crime is “R (that is, the state) v X”. There are certain wrongs which are so serious they are considered to be offences against the whole community, not just the individual victim.  

The Post Office saga is a parable of our times.  It tells a story of a society whose elites have become dangerously detached from principle and deaf to the concerns of ordinary people. It will not go away any time soon. The moment of true catharsis, if it comes, will be when our institutions and leaders have earned back our trust. 

The last word goes to the book of Proverbs: 

When good people run things, everyone is glad, but when the ruler is bad, everyone groans. 

Article
Culture
Economics
Ethics
6 min read

The rights and wrongs of making money with meme coins

When does investing become speculating, or even addictive gambling?
A montage shows Trump with a raised fist against other images of him and the phrase 'fight fight fight'.
$Trump coin marketing image.
gettrumpmemes.com,

Donald Trump’s “liberation day” tariffs may have driven sharp swings in global financial markets, but his actions in markets a few months earlier were in some ways even more peculiar.

On the Friday before his inauguration as the 47th US President in January, the Republican surprised many with the launch of the $TRUMP memecoin, described by its website as “the only official Trump meme”. The cryptocurrency token, in which Trump’s family business owned a stake, initially soared in value to more than $14bn over that following weekend. 

Then, on the Sunday, Trump’s wife Melania launched her own memecoin, $MELANIA, which reached a value of $8.5bn. Even the pastor who spoke at the president’s inauguration subsequently launched his own memecoin. 

For those wondering what exactly a memecoin is, you are not alone. In short, they are a form of cryptocurrency - an asset class that itself has attracted plenty of questions about its substance and purpose - representing online viral moments. They have no fundamental value or business model and, according to the US securities regulator, “typically have limited or no use or functionality”. 

Donald and Melania Trump’s coins subsequently plunged in price, but still have a value of around $2.5bn and $214mn respectively, according to website CoinMarketCap. 

There are plenty of others in existence. PEPE, based on a comic frog, has a value of around $3.6bn; BONK, a cartoon dog, has a market cap of $1.5bn; and PNUT, a reference to a squirrel euthanised by authorities in New York and about which Trump was allegedly “fired up” (although doubt has since been cast on the president’s involvement in the matter), is still valued at around $174mn, despite having fallen sharply in price.  

Dogecoin, seen as the world’s first memecoin and originally created as a joke, boasts a market value of around $25bn. (There are other memecoins which may not be suitable for these pages). 

Some people’s willingness to buy an “asset” with no use or fundamental value may seem strange to more traditional investors. But it can be viewed as just one manifestation of the speculative investor behaviour evident since the onset of the coronavirus pandemic and, indeed, at times throughout history. 

The price of Bitcoin recently rose above $100,000, despite many investors still viewing it as having little or no value (in 2023 the UK’s Treasury select committee described cryptocurrencies as having “no intrinsic value, huge price volatility and no discernible social good”). In early 2021, shares in GameStop - a loss-making US video games retailer that some hedge funds were betting against - rocketed as much as 2,400 per cent, as retail investors piled in, many with the aim of inflicting pain on the hedge fund short sellers (in that respect at least, a highly successful strategy that became the subject of the film Dumb Money). The huge rise in AI and other tech stocks in recent years - until the recent tariff-driven volatility - has also been described as a bubble by some commentators. 

Whether or not such episodes can be compared to infamous bouts of speculative mania in history depends on your point of view (and often can only be judged with the benefit of hindsight) - be it the 17th century Dutch tulip bulb mania, shares in the South Sea Company in the 18th century or the dotcom boom and bust of the late 1990s and early 2000s. 

But it does give rise to the question of when investment should start to be described as speculation or even as gambling? And what are the rights and wrongs of any of those activities? 

There can be negative effects, for instance if the actions of speculators force businesses in the real economy to change their plans or divert time and resources... 

Gambling can be thought of as risking a stake on, for instance, the result of a game of chance or sport in the hope of a bigger payout. While often the result is purely down to chance, in some cases a strategy or an element of research (for instance of a horse or football team’s form) can be used. Investment, in contrast, tends to involve purported economic utility and assets believed to have some sort of underlying value, and holds the hope of future profit (although there are also plenty of bad investments or those that have gone to zero). While an investor must be prepared to lose their entire stake, in some cases such an event is relatively unlikely (for instance, if they buy a fund tracking the performance of a major stock exchange). Speculation is harder to define, but is generally seen as shorter term than investment, with more chance of a bigger gain or loss, and dependent on price fluctuations. Rightly or wrongly, the term has a more negative connotation than investment. 

One writer who explored the ethics of these activities was Oswald von Nell-Breuning, a Jesuit theologian and economist who served as an adviser to the Pope and who was banned from publishing under the Nazis. 

While he found that “one general definition cannot capture all the nuances” of speculation, he identified two different types of speculative activity - one that was purely trying to make a profit from financial market trading, and one based on trying to create a viable business. (See this article in the Catholic Social Science Review for a fuller explanation of Nell-Breuning’s views on speculation). 

As the CSSR article shows, Nell-Breuning found that there can be positive effects from speculation - one might think of better liquidity and price discovery in a market, while, in commodity futures markets, speculators allow producers to hedge risk

But he also argued that there can be negative effects, for instance if the actions of speculators force businesses in the real economy to change their plans or divert time and resources away from production. 

And whereas gambling typically takes place within a circle of players who have chosen to take part, speculation, he wrote, can affect a greater portion of society - for instance, if it affects the price of shares or bonds they hold. 

The Bible - on which Nell-Breuning’s faith and analysis was based - does not take a prescriptive approach to such activities. But it does provide some interesting guidance.  

An entrepreneurial approach to business and investment is applauded, for instance when the writer of the book of Proverbs (traditionally believed to be King Solomon) praises the virtues of “an excellent wife”. These include investing in a field and using her earnings from business to plant a vineyard, and feeding her family from her gains. 

Jesus tells a story of a master who, before going on a journey, gives his property to his servants, each according to their ability. To one he gives five “talents” (a large unit of money), to a second two and to a third servant he gives one. 

The first servant trades with his talents and makes five more talents - a 100 per cent profit - and is applauded by the master on his return. The second servant also trades and similarly makes two more talents and is again applauded. 

But the third servant, being afraid and believing the master to be “a hard man”, hides the money in a hole in the ground. He is condemned as “wicked and slothful”, and told that he should at least have put the money in the bank. 

While Jesus’s story may primarily be about how we view God’s nature, how we use our God-given abilities and whether or not we can take risks in faith for Him, it is also hard not to see investment and indeed wise speculation as being virtuous activities here. Putting the money into a bank account is, in this story anyway, more of a fallback option. 

But the Bible also warns us against putting money above all else in our lives. The love of money is, famously, a root of all sorts of evil, while we are also told to be content with what we have, and that “wealth gained hastily will dwindle”. 

Nell-Breuning similarly warns that a “get-rich-quick” mindset, when this is placed above all else, can be harmful, and advises caution in situations where the lure of big profits can lead the speculator into market manipulation or fraud. 

After all, both gambling and crypto trading have the potential to become dangerous and damaging addictions needing treatment

Ultimately, Nell-Breuning struggled to come to a simple conclusion on the question of whether speculation, in and of itself, is morally wrong. It is, he wrote, a judgment call for those involved. 

When making such decisions ourselves, his - and the Bible’s - warnings may be worth bearing in mind.