Channel 4's 'Dispatches' programme claimed to have found evidence of criminal activity and malpractice.
Undercover reporter Simon Barnes posed as a postman in Royal Mail's Paddington and Vauxhall sorting offices. He claimed to have found clear evidence of criminal activity, including organised gangs who work in the sorting offices in order to steal credit cards, passports and chequebooks.
Malpractice and poor management as well as poor security, dilapidated machinery and a lack of training for new recruits were also revealed.
The programme's accusations are another blow for the already beleaguered firm -- Royal Mail has already admitted that it will fail all targets for delivery this year, putting much of the blame on strike action.
Last year, Royal Mail received more than 1.5m complaints for lost or damaged mail according to the programme, and admits to losing some 280,000 letters a week -- 14m a year. Postwatch, however, believes the true figure is nearer 1m a week.
'Dispatches' also revealed that one in five letters that go missing are stolen, and that around 3,000 passports go missing in the post every year.
In response to the programme, Royal Mail stated that C4 had refused to provide it with any evidence of criminal activity before the show was aired but said it was taking action to clamp down on illegal activity, prosecuting 300 workers just last year. It said it would continue to take action against any wrongdoings, stating "If evidence is received we will thoroughly investigate it."
It also stated: "The vast majority of postmen and women do an excellent job and are honest and hardworking, Neither they, nor anyone else at Royal Mail, recognise the examples C4 say they have filmed as the norm."
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