The ex-CEO of former National Lottery operator Camelot has been appointed as the Post Office’s interim chairman, following the bitter departure of predecessor, Henry Staunton.
Nigel Railton, who spent 24 years in Camelot’s UK division before stepping down last year, has been chosen to lead the Post Office through what is an enormously consequential period for the government-owned company.
Railton’s appointment, announced by the Business and Trade Secretary Kemi Badenoch on Wednesday, comes as hundreds of sub-postmasters await compensation over the Horizon scandal.
Ms Badenoch said she was grateful to Mr Railton for “stepping up to public service at a time of need”, adding: “I know he can help fix the issues of the past while transforming the company of the future.
An unenviable in-tray
Many will hope that Mr Railton’s appointment will mark a new chapter in the testy relationship between the Post Office and the government, which is its soul shareholder.
Staunton, the company’s previous chairman, left under a grey cloud after a bitter dispute with Badenoch became public. The executive used an interview with The Sunday Times to claim that a civil servant advised him to delay any compensation payments to sub-postmasters so that the government could “limp to the election”.
Ms Badenoch issued a stern rebuke, branding the comments a “disgraceful representation” of what had been said.
Railton also joins at a crucial juncture of the inquiry into the Horizon scandal, which saw over 900 sub-postmasters wrongly accused of stealing from the Post Office due to a software malfunction, some of whom served a prison sentence. Paula Vennels, who was chief executive officer between 2012 and 2019, is due to give evidence later this month.
Vennells will have to defend accusations that she and colleagues up the scandal, after leaked recordings exposed revealed bosses heard evidence that sub-postmaster’s accounts had been ‘corrected’ remotely; something which of bosses had previously denied knowledge.
Railton will have to steer the firm through the inevitable fallout from the inquiry, a likely change in government, and oversee further distribution of compensation to sub-postmasters.
Commenting on his appointment, Railton said: “The Post Office plays a vital role in communities across the country. It is a national institution and its success in the years ahead matters to everyone.
“This is an incredibly challenging time for the Post Office as it works to address historic failures while also striving to transform business.”
In addition to his responsibilities with the Post Office, Railton is also, according to his LinkedIn profile, a trustee at the Social Mobility Foundation and chairs Argentex Group, a London-listed currency management firm.
Railton left the former National Lottery operator, Camelot, after the firm lost its licence for the lottery to Czech firm Allwyn.
There is no indication how long his interim role will last.