A RETIRED subpostmaster who says his life was ruined after being accused of stealing £85,000 is demanding an apology after being cleared.

Tom Brown, who once won a bravery award for fending off a succession of armed raiders at a post office in Birtley, blames a controversial computer system called Horizon which processes millions of UK benefit payments.

Mr Brown, and hundreds of other subpostmasters, claim glitches in the system - which cost £1bn and can process millions of transactions every day - left them in debt.

He has joined a legal action against Post Office Ltd focusing on the system and the way alleged shortfalls were dealt with.

The Post Office has always insisted there is no evidence of system-wide software problems. It said a thorough investigation had found no widespread problems.

A number of subpostmasters operating the Horizon system received heavy fines or were even jailed for alleged false accounting. The Criminal Cases Review Commission is currently examining 30 cases of wrongful prosecution.

The Northern Echo: BRAVERY: Now retired subpostmaster Tom Brown, left, received a certificate of valour from district manager Bruce McNiven in 1990

BRAVERY: Now retired subpostmaster Tom Brown, left, received a certificate of valour from district manager Bruce McNiven in 1990

The 71-year-old, from Stanley, County Durham, was charged with two offences of false accounting after an audit of his post office in North Kenton, Newcastle, revealed £85,000 was missing.

He was suspended and after struggling to pay the bills, was made bankrupt – losing his business and home.

The father-of-one spent 30 years working for the Post Office in various locations in Durham and Tyneside.

He said: “I was accused of taking £85,000, but I said don’t be stupid, there is something wrong with the computer. The software they [the Post Office] had was not registering all the transactions, although it was giving people receipts.”

He was suspended by the Post Office and tried to carry on running the shop side of his business, but couldn’t pay the bills and staff wages.

He resigned a year later and with debts mounting his creditors successfully petitioned for his bankruptcy in February 2010.

Mr Brown denied the offences and was sent for trial at Newcastle Crown Court where formal not guilty verdicts were returned after the prosecution offered no evidence.

Mr Brown, now retired, claims he lost £500,000 after all his remaining assets were seized and auctioned off.

His case was brought up in Parliament four years ago by North Durham MP Kevan Jones when questions were posed about problems with the Horizon system.

Mr Brown said: “I want reimbursing for the money I have lost. But the most important thing is for them to admit there was something wrong with the computers. I just want an apology.”

York postmistress Wendy Martin said she was forced to close her Clifton shop after the stress brought on by the Horizon system.

She said she had been left £30,000 in debt adding: "I had to make a decision. Rather than working on a faulty system and paying financial penalties, to close the office and leave myself in debt or risk carrying on with the faulty system and ending up in court."

The group litigation order – approved by the High Court - is being brought by the Justice for Subpostmasters Alliance (JFSA) which will look at the Post Office Ltd’s rights to terminate subpostmaster contracts and examine issues of “good faith, fair dealing, transparency, co-operation and trust and confidence”.

It also seeks to establish whether subpostmasters were placed under duress by Post Office Ltd when they signed off incorrect accounts or when they resigned. The Post Office Ltd is defending the claim.

A spokeswoman said: “The Post Office welcomes the Group Litigation Order as offering the best opportunity for the matters in dispute to be heard and resolved. We welcome the progress that has been made but will not otherwise comment on litigation whilst it is ongoing.

“We continue to have confidence in the robustness of the Horizon system which has around 78,000 users across 11,600 branches nationwide to process six million transactions a day.”

Alan Bates, of the JFSA, said: “As well as a court finding of responsibility, the claimant group will be seeking appropriate financial compensation in respect of loss and damage suffered.”

The JFSA said a significant number of the claimants came from the North-East and subpostmasters who had been affected had until July 26 to join the action.