Henry Staunton stands by claim he was asked to delay compensation payments to Horizon IT scandal victims.
The Cabinet Office said she had "brought the honours system into disrepute".
Business secretary tells Commons that Henry Staunton is spreading "falsehoods" and was under investigation for bullying.
Business secretary Kemi Badenoch has accused ex-Post Office chairman Henry Staunton of lying.
Former Post Office chairman claims he was told to stall handing compensation to victims to help Tories "limp" into election.
"What we really want is leadership," the Asda chair said.
She also said the Post Office "don’t seem to know or care what they’ve done".
"You can't just talk nonsense and not be interrupted."
There's no shortage of people being scrutinised over the saga.
Vennells has actually just handed back her CBE, but some are still asking why she had it in the first place.