Labour is requesting a parliamentary investigation into allegations that the BBC chairman assisted Boris Johnson in obtaining a loan weeks before the then-prime minister nominated him for the position.
According to the Sunday Times, Richard Sharp arranged a guarantee for a loan of up to £800,000 for Mr. Johnson. Mr. Sharp stated that he only “connected” individuals and that there was no conflict of interest.
Mr. Johnson did not get financial advice from Mr. Sharp, according to Mr. Johnson’s spokeswoman.
He also refuted Labour’s claim that Mr. Johnson may have violated the MPs’ code of conduct “by failing to declare the agreement adequately” on his Parliamentary register of interests.
Anneliese Dodds, the chairwoman of Labour, has written to Daniel Greenberg, the Parliamentary Commissioner for Standards, requesting “an immediate investigation into the facts of this issue.”
In late 2020, Mr. Johnson was reportedly experiencing financial difficulties. The Sunday Times reports that multimillionaire Canadian businessman Sam Blyth suggested to Mr. Sharp that he serve as Mr. Johnson’s loan guarantor.
Mr. Sharp, a Conservative Party donor who was bidding for the position of BBC chairman at the time, contacted Simon Case, the then-head of the civil service and cabinet secretary.
According to the report, Mr. Sharp, Mr. Blyth, and Mr. Johnson dined at Chequers before the loan was finalized, but 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 culture secretary and the prime minister make the selection.
The BBC chairman presides over the board that determines the corporation’s strategic direction and safeguards its autonomy.
The Sunday Times reports that candidates for such publicly-appointed positions must disclose any potential conflicts of interest.
Mr. Sharp stated in a statement,
“There is no conflict of interest because I just connected Mr. Blyth with the cabinet secretary at his request and had no further involvement.”
Labour had previously written to the Parliamentary Commissioner for Standards requesting an investigation into reports that Mr. Blyth, a distant cousin of Mr. Johnson, had established the borrowing facility.
In her letter to the commissioner, Ms. Dodds references the Sunday Times article and expresses worry that Mr. Johnson may have violated guidelines “by requesting a person he would subsequently promote to a top public job to guarantee a loan.”
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.”
A representative for Mr. Johnson stated: “Richard Sharp has never offered Boris Johnson financial advice, and Mr. Johnson has never 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.
A BBC spokesperson stated,
“The BBC has no part in the selection of the chair, and any questions should be sent to the government.”
The government has not yet responded to a request for comment from the BBC.
Also Read: How Does Katie George, An ESPN Sporyscaster, Get Paid?
