The government stated that all proper procedures were followed in the appointment of Richard Sharp as chairman of the BBC in early 2021.
It follows allegations that Mr. Sharp helped the then-prime minister, Boris Johnson, arrange a loan guarantee agreement just before accepting the position.
Mr. Sharp, Mr. Johnson, and the government all deny a conflict of interest existed. But Labour has requested an investigation from the watchdog for parliamentary standards.
Labour has argued that Mr. Johnson may have violated the MPs’ code of conduct “by failing to declare the agreement adequately” on his parliamentary register of interests.
According to the Sunday Times, which first published the allegations, Mr. Sharp assisted Mr. Johnson in late 2020 in securing a guarantee for a loan of up to £800,000 with a maximum value of £800,000.
Mr. Sharp stated that he had “just connected” individuals, whilst Mr. Johnson’s spokesman called the report “rubbish” and asserted that his financial arrangements “had been duly documented.”
Sunday, the Cabinet Office again denied allegations of a potential conflict of interest. Conflicts of interest occur when an MP or minister’s public obligations and private interests may conflict.
A Cabinet Office representative stated,
“Richard Sharp was named chairman of the BBC following a thorough selection process that included evaluation by a panel of experts convened in accordance with the public appointments code.”
“Mr. Sharp’s appointment was confirmed after additional pre-appointment vetting by a House of Commons Select Committee. All recruitment procedures were handled correctly.”
The Sunday Times article focuses on events in late 2020 when it was rumored that Mr. Johnson was in financial trouble.
It is stated that multimillionaire Canadian businessman Sam Blyth, a distant cousin of Mr. Johnson, proposed to Mr. Sharp that he serve as Mr. Johnson’s loan guarantor. It is unclear where the lending deal originated.
Mr. Sharp, a Conservative Party donor who was vying for the BBC chairmanship at the time, called Simon Case, the cabinet secretary and head of the civil service at the time. According to the report, a procedure of due diligence was subsequently initiated.
A Cabinet Office official confirmed this on Sunday, stating,
“Mr. Sharp reminded the cabinet secretary of the BBC appointment procedure and asked for guidance, given his existing relationship with Boris Johnson.”
“They agreed that he was ineligible to participate in negotiations with the then-prime minister due to the appointment process. This was accepted by Mr. Sharp in order to avoid any conflict or even the perception of a conflict of interest, and the then-prime minister was informed appropriately.”
According to the Sunday Times, Mr. Sharp, Mr. Blyth, and Mr. Johnson dined at Chequers before the loan guarantee was finalized, though they deny discussing the Prime Minister’s finances at that time.
Mr. Sharp, a former Goldman Sachs banker, was named the new head of the BBC by the government in January 2021.
The final decision is made by the prime minister, based on the advice of the culture secretary, who is in turn advised by a panel.
As chairman of the BBC, Mr. Sharp is responsible for safeguarding and defending the corporation’s autonomy and ensuring that it fulfills its goal to inform, educate, and amuse. Candidates for publicly appointed positions such as chairman must disclose any potential conflicts of interest.
Mr. Sharp stated,
“There is no conflict of interest because I just connected Mr. Blyth with the cabinet secretary at his request and had no further involvement.”
A representative for Mr. Johnson stated, “Richard Sharp has never provided Boris Johnson with financial advice, nor has Mr. Johnson requested financial advice from him.” Mr. Sharp has never received payment or reward from Boris Johnson for this or any other service.
“Mr. Johnson did dine with Mr. Sharp, whom he has known for nearly two decades, and his cousin. Then what? Big deal.
On the guidance of officials, all of Mr. Johnson’s financial arrangements have been legally stated and registered.
Anneliese Dodds, chairwoman of Labour, has written to the Parliamentary Commissioner for Standards, Daniel Greenberg, who is responsible for regulating the behavior of members of parliament, requesting “an urgent investigation into the facts of this issue.”
Ms. Dodds expressed worry that Mr. Johnson may have violated the regulations by requesting a loan guarantee from an individual whom he would subsequently nominate to a top public position.
She stated that a “lack of openness” may “give the idea that this was a quid pro quo deal, which would undermine the democratic process and put into question the procedure by which the BBC chairman was nominated.”
Foreign Secretary James Cleverly stated on Sunday that Mr. Sharp’s appointment was based on merit.
Mr. Sharp declined to appear on BBC One’s Laura Kuenssberg on Sunday, but stated that “the notion that anything pecuniary was involved is false.”
The BBC has stated that it “plays no role in the selection of the chairman, and any questions should be sent to the government.”
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