Britain’s audit watchdog probes EY over Post Office scandal

Hundreds of self-employed workers at the state-owned Post Office were wrongly prosecuted or convicted between 1999 and 2015 for false accounting, (FILE/AFP)
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Updated 16 April 2025
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Britain’s audit watchdog probes EY over Post Office scandal

  • Hundreds of self-employed workers at the state-owned Post Office were wrongly prosecuted or convicted between 1999 and 2015 for false accounting, theft and fraud, because of glitches in a software

LONDON: Britain’s Financial Reporting Council has opened an investigation into EY over its audit of Post Office Limited, it said on Wednesday, amid the lingering fallout from one of the country’s worst miscarriages of justice.
The FRC said in a statement it will focus on the audit firm’s role in approving the Post Office’s financial statements from 2015 to 2018, particularly the Horizon IT system which was at the heart of the scandal.
“We have been notified of the FRC’s intention to open an investigation into the EY audits of Post Office Limited for the financial years ending March 2015 – March 2018,” a spokesperson for EY said. “We take our public interest responsibilities extremely seriously and will be fully cooperating with the FRC during their investigation,” the spokesperson said.
Hundreds of self-employed workers at the state-owned Post Office were wrongly prosecuted or convicted between 1999 and 2015 for false accounting, theft and fraud, because of glitches in a software system that incorrectly showed money missing from accounts.
Some were jailed, lost their marriages or otherwise saw their lives destroyed while others died before their names could be cleared.
Spurred into action last year by public outcry following a television series that dramatized the scandal, then-Prime Minister Rishi Sunak sought to quash the wrongful convictions while a police investigation and public inquiry have also been carried out.


Britain poised to reset trade and defense ties with EU

Updated 7 sec ago
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Britain poised to reset trade and defense ties with EU

  • Starmer taking a political risk with closer EU ties
  • Deal likely to cover defense, trade, fish

LONDON Britain is poised to agree the most significant reset of ties with the European Union since Brexit on Monday, seeking closer collaboration on trade and defense to help grow the economy and boost security on the continent.
Prime Minister Keir Starmer, who backed remaining in the EU, has made a bet that securing tangible benefits for Britons will outweigh any talk of “Brexit betrayal” from critics like Reform UK leader Nigel Farage when he agrees closer EU alignment at a summit in London.
Starmer will argue that the world has changed since Britain left the bloc in 2020, and at the heart of the new reset will be a defense and security pact that could pave the way for British defense companies to take part in a 150 billion euros ($167 billion) program to rearm Europe.
The reset follows US President Donald Trump’s upending of the post-war global order and Russia’s full-scale invasion of Ukraine, which have forced governments around the world to rethink ties on trade, defense and security. Britain struck a full trade deal with India earlier this month and secured some tariff relief from the United States. The EU has also accelerated efforts to forge trade deals with the likes of India and deepen partnerships with countries including Canada, Australia, Japan and Singapore.
Negotiations between the two sides continued into Sunday evening, before European Commission President Ursula von der Leyen and European Council President Antonio Costa were due in London on Monday morning. One EU diplomat cautioned that “nothing is agreed until everything is agreed.” From the issues up for discussion, Britain is hoping to drastically reduce the border checks and paperwork slowing down UK and EU food and agricultural exports, while access to faster e-gates for UK travelers at EU airports would be hugely popular.
In return, Britain is expected to agree to a limited youth mobility scheme and could participate in the Erasmus+ student exchange program. France also wants a long-term deal on fishing rights, one of the most emotive issues during Brexit.

Limited room for maneuver
Britain’s vote to leave the EU in a historic referendum in 2016 revealed a country that was badly divided over everything from migration and sovereignty of power to culture and trade.
It helped trigger one of the most tumultuous periods in British political history, with five prime ministers holding office before Starmer arrived last July, and poisoned relations with Brussels.
Polls show a majority of Britons now regret the vote although they do not want to rejoin. Farage, who campaigned for Brexit for decades, leads opinion polls in Britain, giving Starmer limited room for maneuver.
But the prime minister and French President Emmanuel Macron have struck up a solid relationship over their support for Ukraine, and Starmer was not tainted with the Brexit rows that went before, helping to improve sentiment.

‘Break the taboo’
The economic benefit will be limited by Starmer’s promise to not rejoin the EU’s single market or customs union, but he has instead sought to negotiate better market access in some areas — a difficult task when the EU opposes so-called “cherry picking” of EU benefits without the obligations of membership.
Removing red tape on food trade will require Britain to accept EU oversight on standards, but Starmer is likely to argue that it is worth it to help lower the cost of food, and grow the sluggish economy.
Agreeing a longer-term fishing rights deal will also be opposed by Farage, while the opposition Conservative Party labelled Monday’s event as the “surrender summit.”
One trade expert who has advised politicians in both London and Brussels said the government needed to “break the taboo” on accepting EU rules, and doing so to help farmers and small businesses was smart.
Trade experts also said Britain benefited from the greater focus on defense, making the deal look more reciprocal, and said improved ties made sense in a more volatile world.
When “trade disruption is so visible and considerable” anything that reduced trade friction with a country’s biggest trading partner made sense, said Allie Renison, a former UK government trade official at consultancy SEC Newgate.

 


Ruling party tops Portugal polls marked by far-right surge

Updated 25 min 43 sec ago
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Ruling party tops Portugal polls marked by far-right surge

  • Near complete official results showed PM Montenegro’s Democratic Alliance (AD) captured 32.7 percent of the vote
  • AD gets 89 of parliament's 230 seats, which is short of the 116 seats required for a ruling majority

LISBON: Portugal’s incumbent center-right party won the most seats in the country’s third general election in three years on Sunday but again fell short of a parliamentary majority, while support for the far-right Chega rose.
The outcome threatens to extend political instability in the NATO and European Union member state as the bloc faces growing global trade tensions and works to strengthen its defenses.
Near complete official results showed that Prime Minister Luis Montenegro’s Democratic Alliance (AD) captured 32.7 percent of the vote in Sunday’s poll with the Socialist Party (PS) and Chega virtually tied in second place.
That would boost the AD’s seat tally in the 230-seat parliament to 89, short of the 116 seats required for a ruling majority.
The Socialists had 23.4 percent, their worst result in decades, trailed closely by Chega (“Enough“) with 22.6 percent wich would give each party 58 seats.
Even with the backing of upstart business-friendly party Liberal Initiative (IL) which won nine seats, the AD would still need the support of Chega to reach a majority to pass legislation.
But Montenegro, 52, a lawyer by profession, has refused any alliance with Chega, saying it is “unreliable” and “not suited to governing.”
“It is not clear that there will be increased governability following these results,” University of Lisbon political scientist Marina Costa Lobo told AFP, calling Chega “the big winner of the night.”

Support for Chega has grown in every general election since the party was founded in 2019 by Andre Ventura, a former trainee priest who later became a television football commentator.
It won 1.3 percent of the vote in a general election in 2019, the year it was founded, giving it a seat in parliament — the first time a far-right party had won representation in Portugal’s parliament since a coup in 1974 toppled a decades-long rightist dictatorship.
Chega became the third-largest force in parliament in the next general election in 2022 and quadrupled its parliamentary seats last year to 50, cementing its place in Portugal’s political landscape.
Like other far-right parties that have gained ground across Europe, Chega has tapped into hostility to immigration and concerns over crime.
There are still four seats left to be assigned representing Portuguese who live abroad, but those results will not be known for days.
Sunday’s election was triggered after Montenegro lost a parliamentary vote of confidence in March after less than a year in power.
He called for the vote following allegations of conflicts of interest related to his family’s consultancy business, which has several clients holding government contracts.

Montenegro denied any wrongdoing, saying he was not involved in the day-to-day operations of the firm.
The AD formed a minority government after the last election. It passed a budget that raises pensions and public sector wages, and slashes income taxes for young people, because the PS abstained in key votes in parliament.
But relations between the two main parties soured after the confidence vote, and it is unclear if a weakened PS will be willing to allow the center-right to govern this time around.
Socialist leader Pedro Nuno Santos, a 48-year-old economist, had accused Montenegro of engineering the election “to avoid explaining himself” about the firm’s activities to a parliamentary enquiry.
After the results were announced, he said he would call an internal party election to pick a new leader.
Montenegro has criticized the immigration policies of the previous Socialist government, accusing it of leaving Portugal in “bedlam.”
Under the Socialist Party, Portugal became one of Europe’s most open countries for immigrants.
Between 2017 and 2024, the number of foreigners living in Portugal quadrupled, reaching about 15 percent of the total population.
Montenegro has since toughened immigration policy, and during the campaign his government announced the expulsion of some 18,000 irregular migrants, leading critics to accuse it of pandering to far-right voters.
 


Polish centrist’s narrow presidential lead leaves pro-EU path in balance

Updated 19 May 2025
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Polish centrist’s narrow presidential lead leaves pro-EU path in balance

  • Centrist and liberal left parties score lower than expected
  • Far-right voters to play crucial role in second round

WARSAW: Polish liberals performed worse than expected in a presidential election on Sunday, an exit poll showed, as Rafal Trzaskowski from ruling centrists Civic Coalition (KO) scraped to victory setting up a close fight for Warsaw’s pro-European path.
Trzaskowski placed first with 30.8 percent of the vote, ahead of Karol Nawrocki, the candidate backed by the nationalist Law and Justice (PiS) party, who had 29.1 percent, according to an Ipsos exit poll. The gap was much narrower than the 4-7 percentage points seen in opinion polls before the vote.
If confirmed, the result would mean that Trzaskowski and Nawrocki will go head-to-head in a runoff vote on June 1 to determine whether Poland sticks firmly on the pro-European track set by Polish Prime Minister Donald Tusk or moves closer to nationalist admirers of US President Donald Trump.
“We are going for victory. I said that it would be close and it is close,” Trzaskowski told supporters. “There is a lot, a lot, of work ahead of us and we need determination.”

Warsaw Mayor Rafal Trzaskowski, the presidential candidate of the Civic Coalition reacts to exit polls for the first round of Poland's presidential election, in Sandomierz, Poland, on May 18, 2025. (REUTERS)

Nawrocki also told supporters he was confident of victory in the second round and called on the far-right to get behind him and “save Poland.”
“We have to win these elections so that there is no monopoly of power of one political group, so that there is no monolithic power in Poland,” he said.
An Opinia24 poll for private broadcaster TVN published after the first round gave Trzaskowski 46 percent in the run-off and Nawrocki 44 percent, with 10 percent of voters either undecided or refusing to say.
Far-right candidates Slawomir Mentzen and Grzegorz Braun scored almost 22 percent combined, a historically high score.
Braun, who in 2023 used a fire extinguisher to put out Hanukkah candles in the country’s parliament, an incident that caused international outrage, won 6.2 percent of the vote according to the exit poll.
Mentzen stopped short of immediately endorsing Nawrocki.
“Voters... are not sacks of potatoes, they are not thrown from one place to another,” he said. “Each of our voters is a conscious, intelligent person and will make their own decision.”
Stanley Bill, Professor of Polish Studies at the University of Cambridge, said the combined strong showing of nationalist and far-right parties meant the results were “a disappointment for the Trzaskowski camp and put wind in the sails of Nawrocki.”
“I would add to this that the results are a significant blow to Donald Tusk’s ruling coalition,” Bill added. “Candidates representing parties that won 53.7 percent of the vote in the 2023 parliamentary elections won only 44.9 percent of the vote this evening.”
Turnout was 66.8 percent according to the exit poll.
The vote in Poland took place on the same day as a presidential run-off vote in Romania, in which centrist Bucharest mayor, Nicusor Dan, appeared on course to defeat Euroskeptic hard-right lawmaker George Simion.

Karol Nawrocki, presidential candidate for the 2025 Polish presidential election supported by Poland's national conservative Law and Justice party, wave to supporters as first exit polls following the presidential elections are announced in Gdansk, Poland, on May 18, 2025. ( AP Photo)

Presidential veto
In Poland, the president has the power to veto laws. A Trzaskowski victory in the second round would enable Tusk’s government to implement an agenda that includes rolling back judicial reforms introduced by PiS that critics say undermined the independence of the courts.
However, if Nawrocki wins, the impasse that has existed since Tusk became prime minister in 2023 would be set to continue. Until now, PiS-ally President Andrzej Duda has stymied Tusk’s efforts.
If the exit poll is confirmed, the other candidates in the first round, including Mentzen from the far-right Confederation Party, Parliament Speaker Szymon Holownia of the center-right Poland 2050 and Magdalena Biejat from the Left, will be eliminated.
Two updated polls that take into account partial official results will be published later in the evening and early on Monday morning.

Role in Europe
Trzaskowski has pledged to cement Poland’s role as a major player at the heart of European policymaking and work with the government to roll back PiS’s judicial changes.
Nawrocki’s campaign was rocked by allegations, which he denies, that he deceived an elderly man into selling him a flat in return for a promise of care he did not provide. But Trump showed support by meeting Nawrocki in the White House.
Nawrocki casts the election as a chance to stop Tusk achieving unchecked power and push back against liberal values represented by Trzaskowski, who as Warsaw mayor was a patron of LGBT marches and took down Christian crosses from public buildings.
Unlike some other euroskeptics in central Europe, Nawrocki supports military aid to help Ukraine fend off Russia. However, he has tapped into anti-Ukrainian sentiment among some Poles weary of an influx of refugees from their neighbor.
He has said Polish citizens should get priority in public services and criticized Kyiv’s attitude to exhumations of the remains of Poles killed by Ukrainian nationalists during World War Two.


Starmer discusses Russian war against Ukraine with US, Italy, France and Germany

Updated 19 May 2025
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Starmer discusses Russian war against Ukraine with US, Italy, France and Germany

  • The talks followed intense diplomacy by the leaders that started with their May 10 trip to Kyiv when the major European powers threw their weight behind an unconditional 30-day Ukraine ceasefire

British Prime Minister Keir Starmer on Sunday discussed Russia’s war against Ukraine with leaders of the US, Italy, France and Germany, a Downing Street spokesperson said.
Looking ahead to US President Donald Trump’s call with Russia’s President Vladimir Putin on Monday, the leaders discussed the need for an unconditional ceasefire in the war that Russia launched against its smaller neighbor more than three years ago.
They also discussed the use of sanctions if Russia fails to engage seriously in ceasefire and peace talks, the spokesperson added.
The talks followed intense diplomacy by the leaders that started with their May 10 trip to Kyiv when the major European powers threw their weight behind an unconditional 30-day Ukraine ceasefire.
“Tomorrow, President Putin must show he wants peace by accepting the 30-day unconditional ceasefire proposed by President Trump and backed by Ukraine and Europe,” French President Emmanuel Macron said on X after the Sunday call.
UK’s Foreign Minister David Lammy on Saturday accused Moscow of obfuscating after talks between Ukraine and Russia on a possible ceasefire ended in less than two hours and Trump said “nothing could happen” until he had met directly with Putin.
Russia — which is slowly but steadily advancing on the battlefield and is worried that Ukraine will use such a pause to regroup and re-arm — has said it needs to nail down the terms of a ceasefire before signing up to one.


Paris airport chaos to enter second day after air traffic breakdown

Updated 19 May 2025
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Paris airport chaos to enter second day after air traffic breakdown

  • The breakdown hit on Sunday and has affected thousands of passengers

ORLY, France: An air traffic control breakdown at Paris-Orly airport caused the cancelation and delay of hundreds of flights and the aviation authority said the chaos would extend into Monday.
The breakdown hit on Sunday and has affected thousands of passengers with some already sat in planes at the French capital’s second biggest airport when flights were canceled.
The control tower breakdown forced the cancelation of about 130 flights in and out of Orly Sunday, officials said.
It had not been resolved by late Sunday and the DGAC French civil aviation authority said it was “asking airlines to reduce their flight schedules by 15 percent” on Monday and warned that “delays are expected.”
“The situation is improving but still requires traffic regulation,” the DGAC said.
The authority blamed an air traffic control “malfunction.” An airport source said there had been a “radar failure.”
Flights to European and North Africa destinations and across France were among those hit. Long queues formed at terminals amid a frenzied rush to find alternative transport.
“We were in the aircraft, all seated and strapped in, ready to go, when they made us disembark and collect our bags ... then began the ordeal,” said Azgal Abichou, a 63-year-old business owner.
“The only option is a 300 euro flight — and there’s only one seat left, but there are two of us and we are not even sure it will take off,” said Romane Penault, a 22-year-old student. “So for now, we’re going home.”
Agnes Zilouri, 46, tried desperately to find a seat for her 86-year-old mother and six year old son in the terminal. The family should have taken a flight to Oujda in Morocco on Sunday evening to go to a funeral.
“The flight is canceled. Fortunately I am with my mother,” she said.
Last year Orly handled about 33 million passengers, approximately half the number of the main Paris Charles de Gaulle international airport.