The new “bombshell” claims were made in front of the Business and Trade Select Committee, at a hearing attended by several sub-postmasters and mistresses.
MPs heard evidence of how affected postmasters were waiting for months for offers on compensation payments and lawyers raised concerns that many may have “under-settled”.
Alan Bates: Post Office a dead duck
Alan Bates, whose story was televised in the ITV drama Mr Bates vs The Post Office, told MPs he was not reassured by what he had heard from the session.
The former postmaster, who rejected his first offer which was “around a sixth” what he had requested, told MPs: “It’s very disappointing and this has been going on for years, as you well know, and I can’t see any end to it.”
He described the Post Office as a “dead duck” and suggested the business would be best off being sold “to someone like Amazon for £1”.
Early on in his evidence session, Mr Staunton, a former WHSmith chairman, was granted permission to read a statement he had prepared.
Referring to his public row with Kemi Badenoch, the Business Secretary, he said: “I still think that more could be done at least to make compensation more generous and the process of getting justice less bureaucratic.
“But I will at least have achieved something if the sunlight of disinfectant, which the Secretary of State so approves of, means that Government now lives up to its promises.”
He added: “I’ve spoken up on matters of genuine, public concern, have been fired and now am subject to a smear campaign.”
Report: Read wanted to resign over pay
During his evidence session, Mr Staunton claimed an 80-page report on Mr Read, prepared by the HR director he had fallen out with, also stated that the chief executive was going to resign over his pay.
This claim came less than an hour after Mr Read denied under oath ever having “tried to resign”.
Mr Staunton also said the document contained “one paragraph” with allegations about himself, which claim he made “politically incorrect comments”.
The Telegraph understands that one of these remarks relates to a claim that Mr Staunton called a female member of staff a “girl”.
However, he told MPs that he “strenuously denies” making any of the comments alleged.
Mr Staunton’s comments came less than two weeks after he told the Sunday Times he had been told to delay compensation payments ahead of the general election.
He denies any knowledge of bullying allegations, maintains his claims made in the Sunday Times and he says he acted “scrupulously” in the appointment of a new director to the board.
Ms Badenoch went on to brand his account as “full of lies”.
In the evidence session, Mr Read said he did not believe anyone at the company was told by the Government to slow down the payments of compensation to subpostmasters.
“I don’t believe that to be the case and I can categorically say that nobody in my team or myself has received any instruction from the Government about slowing down compensation,” he said.
Mr Staunton claimed: “The 80-page report alleges, from the HR director, not my words, that Nick was going to resign because he was unhappy with this pay.”