A court heard that Aleid Kloosterhuis had made "admissions" to a Post Office investigator about taking money from the Isle of Gigha branch, but prosecutors have since accepted that the case against her had been compromised which made the conviction unsafe.
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Aleid Kloosterhuis, 64, had been sentenced to 12 months imprisonment after she pleaded guilty at Campbeltown Sheriff Court in 2012 to one charge of embezzlement.