A SUBPOSTMASTER accused of taking part in a fiddle in which cash to the tune of more than £30,000 was "pocketed," told a jury he had nothing to do with it.

Self-employed international businessman Paul Anthony Jackson, 33, who then owned Colne post office, told Burnley Crown Court he did not take the money - somebody had, but he had not decided who.

He said the first he knew of the scam was when police knocked on his front door in the early hours.

Jackson, who said he liked to describe himself as above average intelligence, agreed the fraud must have been an "inside job," but added he was not going to "name names."

The defendant, of Hurstwood Lane, Worsthorne, denies conspiring to defraud the Department of Social Security between July 1999 and Deecmber 2000. The department allege he was involved with at least two other people - not employees at the post office - in the plot.

The court has been told how the money went missing after dockets from "lost in transit " benefits books were cashed. Staff were worried the finger of suspicion may be pointed at them and one went to the police.

Jackson, who also ran Nelson Post Office for four years, told the court he had had numerous businesses for more than a decade.

Colne Post Office was his first business which he obtained when he was 21 but he did not go to the premises on a regular basis.

The defendant, who said he owned a wholesale toy company which bought extensively from the United States, said he had worked in just short of 30 post offices in over 15 years.

Questioned by his barrister John Jackson, the defendant, who had been described by one worker as "unapproachable," said he was not told when staff at first discovered the fraud and they had thought a colleague was responsible. He said one employee had seemed to build up an "us and him," atmosphere and he had seemed to get alienated from staff.

Mr Jackson said; "It is being suggested you are the person who obtained monies by deception. Were you in any way involved in this fraud ?" Jackson replied; "Categorically no."

Under cross-examination, the defendant said he liked to think he ran Colne Post Office very well over the years.

Asked who he thought was responsible for the fraud if it wasn't him, Jackson said he thought it would be somebody who had access to the secure part of the post office.

He said he was not going to name names, but there were a number of possibilities. Former members of staff could have had keys cut - and although that was far fetched, it was a possibility. He felt one or more of the employees who had given evidence must not be telling the whole truth.

Jackson, who said he thought the fraud must have been committed by somebody who was intelligent, claimed investigating officers in the case had not afforded any time looking at anybody else but him.

He said the first time he was aware of any fraud at the post office was at 7am on 7 December, 2000, when four police officers knocked on his door.

(Proceeding)