Post Office employees "implicated" in the Horizon scandal may "still be operating at the heart" of the business, the inquiry into it has heard.
Chief executive Nick Read was on Thursday questioned about issues around staff who played a part in wrongful prosecutions and investigations of sub postmasters before 2015.
Jason Beer KC asked whether, during a meeting in January with the then Post Office minister Kevin Hollinrake, the government was "green lighting" action against employees.
Nick Read replied that it "does sound like it" but admitted the Post Office has "dragged our feet" and not been "robust" in acting.
Addressing Mr Read, Mr Beer then said: "The issue is the potential for individuals who still may be operating at the heart of Post Office who are implicated in events in the past, isn't it?"
Mr Read replied: "That is the case and, as I've been very clear, where we get formal allegations we will act. Pre-emptively we have struggled to move people on from the organisation."
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Hundreds of sub postmasters were wrongfully convicted due to faulty Horizon computer software used by the Post Office between 1999 and 2015.
In one of his witness statements, Mr Read also says the Post Office kept investigators employed because they have "human rights".
He writes he would have "preferred" that more "decisive action" had been taken, and he had aired those views to the board.
He describes a "collective decision" not to "simply dismiss anyone who was, for instance, an investigator at the time but against whom there was no direct evidence of wrongdoing, rather to transfer them to other departments".
He asserts that unless wrongdoing can be proven, the Post Office "cannot simply remove existing staff because they were in post when the miscarriages of justice were taking place".
"Those individuals of course have employment and indeed human rights themselves," he says.
Three people under investigation
On Wednesday, it emerged three individuals are currently under investigation by the Post Office and outside agencies over their conduct around the Horizon scandal.
Allegations against the individuals had emerged in restorative justice hearings with victims.
The inquiry also heard details about the new contracts in place for sub postmasters that mention the Post Office Investigation Division (POID).
Mr Beer questioned how appropriate the contract currently is in telling sub postmasters the POID has investigatory powers including "an evidential interview process under caution".
Mr Read admitted the wording was "heavy handed" and agreed it needed "addressing, not just rewording".
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Tap hereHe also told the inquiry it was "astonishing" the Post Office was involved in the administration of compensation schemes.
He said the "corporate view" was that the Post Office should not have anything to do with them.
When asked why that view was not communicated to the inquiry, Mr Read responded: "It's a good question. I'm unsure why we didn't make that very explicit… clearly we should have done."
He described it as a "failure".
The inquiry continues.
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