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BBC Chairman resigns over £800,000 Boris Johnson loan row

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BBC Chairman, Richard Sharp has resigned after an investigation found he had breached the code on public appointments.

The investigation led by the Commissioner for Public Appointments, Adam Heppinstall KC, found that he did not properly disclose his involvement in the facilitation of a £800k loan to the then Prime Minister, Boris Johnson.

In a resignation letter to Lucy Fraser, the Secretary of State for Culture, Media and Sport Department for Culture, Media and Sport, Richard Sharp stated:

“Mr Heppinstall’s view is that while I did breach the governance code for public appointments, he states that a breach does not necessarily invalidate an appointment.

“Indeed, I have always maintained the breach was inadvertent and not material, which I believe the facts he lays out substantiate. In any event I am sorry that these events have impacted the BBC in recent months, and I regret such a breach occurred.

“I am pleased that Mr Heppinstall supports the fact that my involvement in the events examined in his report was very limited.

“Furthermore, he states that he is happy to record there is no evidence – and nor could there be – to say I played any part whatsoever in the facilitation, arrangement, or financing of a loan for the former Prime Minister.

“Nevertheless, I have decided that it is right to prioritise the interests of the BBC. I feel that these matters may well be a distraction from the Corporation’s good work were I to remain in post until the end of my term. I have decided therefore to resign from my position as BBC Chair.

“As you know the BBC Board proposed that I stay on as Chair until the end of June, while the process to appoint my successor is undertaken. I am happy to do that in the interests of the Corporation’s stability and continuity.”

The investigation was based around whether Sharp failed to disclose the details of his involvement in the facilitation of a guarantee for an £800k loan to Boris Johnson.

He denied any involvement in this or that there was a conflict of interest.

However, he has admitted to setting up a meeting between the Head of the Civil Service and Sam Blyth, who had offered financial assistance. That was in 2020.

At the time of the meeting Sharp had already applied to be the BBC Chairman. In 2021, he was named the preferred candidate by the Government.

The following year the Sunday Times reported on the loan.

Sharp also released a public statement this morning:

“When I sought in December 2020 to introduce the Cabinet Secretary to Mr. Blyth I did so in good faith.

“I did so with the best of intentions.

“And I did so with the sole purpose of ensuring that all relevant rules were being followed.

“I am pleased that Mr Heppinstall supports the fact that my involvement in these matters, as he states, was accordingly “very limited”.

“After extensive work he states, his words, that he is “happy to record” that he has seen no evidence – and nor could he – to say I played any part whatsoever in the facilitation, arrangement, or financing of a loan for the former Prime Minister.

“During my conversation with the Cabinet Secretary on December 4th, 2020, I reminded him of the fact that I was in the BBC appointments process.

“I believed, as a result of that conversation, that I had been removed from any conflict or perception of conflict.

“I  understood this recusal to be absolute.

“This was my error.

“In my subsequent interview with the Appointments Panel I wish, with the benefit of hindsight, this potential perceived conflict of interest was something I had considered to mention.

“I would like once again to apologise for that oversight – inadvertent though it was – and for the distraction these events have caused the BBC.”

He continued:

“For more than two years now I have seen the beating heart of the BBC up close.

“And for all its complexities, successes, and occasional failings, the BBC is an incredible, dynamic, and world beating creative force, unmatched anywhere.

“As Chair I have acted at all times in the public interest, and for the betterment of the BBC.

“I am proud to have fought for the recent return of Government funding for the World Service.

“I have been active in commissioning independent thematic reviews of BBC coverage on touchstone issues.

“And I have championed the importance of the BBC as a well-funded and impartial public service broadcaster.

“To chair this incredible organisation has been an honour. The BBC’s contribution to our national life is immense, its people are hardworking and absolutely brilliant, and preserving and enhancing it matters.”

The BBC Board also issued a statement:

“We accept and understand Richard’s decision to stand down. We want to put on record our thanks to Richard, who has been a valued and respected colleague, and a very effective Chairman of the BBC. The BBC Board believes that Richard Sharp is a person of integrity.

“Richard has been a real advocate for the BBC, its mission, and why the Corporation is a priceless asset for the country, at home and abroad. He has always had the impartiality of the BBC and a desire to see the organisation thrive at the forefront of his work as Chairman.

“We understand that the UK Government is moving swiftly to begin the process of appointing a new Chairman of the BBC, in line with the terms of the BBC’s Charter.”

Tim Davie, the Director-General of the BBC, added:

“On behalf of the BBC Executive, I would like to thank Richard for his service to the BBC and the drive and intellect he brought to his time as Chairman. Working with him over the last two years has been rewarding and Richard has made a significant contribution to the transformation and success of the BBC.

“The focus for all of us at the BBC is continuing the hard work to ensure we deliver for audiences, both now and in the future.”

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