BBC chairman Richard Sharp’s position is in increased peril after MPs found he made “significant errors of judgment” by acting as a go-between for a loan for Boris Johnson.
A cross-party committee was furious that Sharp failed to declare to MPs his role in facilitating the loan when he was applying for the job of BBC chairman and said he should “consider the impact his omissions will have” on trust in the broadcaster.
They said his actions “constitute a breach of the standards expected of individuals” applying for prominent public appointments.
Sharp has insisted that he did not arrange the loan but admitted introducing his friend Sam Blyth, a cousin of Johnson who wanted to help the then prime minister with his financial troubles, to the Cabinet Office.
A spokesman for Sharp said he “regrets” not telling MPs about his involvement with Blyth “and apologises”. Sharp was named as the preferred candidate for the BBC job in January 2021 and the Commons Digital, Culture, Media and Sport Committee backed his appointment – but crucially they were not aware of his role in facilitating the £800,000 loan guarantee.
In a strongly worded report they have now suggested Sharp’s failure to come clean could damage the BBC.
“Richard Sharp’s decisions, firstly to become involved in the facilitation of a loan to the then-prime minister while at the same time applying for a job that was in that same person’s gift, and then to fail to disclose this material relationship, were significant errors of judgment, which undermine confidence in the public appointments process and could deter qualified individuals from applying for such posts,” the MPs said.
The committee concluded: “Sharp should consider the impact his omissions will have on trust in him, the BBC and the public appointments process.”
The MPs were also critical of Rishi Sunak (above) and other senior ministers who had highlighted their 2021 decision to endorse Sharp to defend the appointment since the row over the loan broke, despite the fact they had not been told about the situation.
“The fact that ministers have cited this committee’s original report on Sharp’s appointment as a defence of the process was followed, when we were not in full possession of all the facts that we should have had before us in order to come to our judgment, is highly unsatisfactory,” the MPs said.
The MPs said there was an “unresolved issue” as to why Cabinet Secretary Simon Case believed Sharp had himself been giving financial advice to Johnson and called on the Cabinet Office to “clear up the confusion”.
“Sharp denied that he had ever given financial advice to the then-prime minister but was unable to account for the decision by the Cabinet Office to issue a note to the Prime Minister advising him not to seek further financial advice from Sharp given his impending appointment as chair of the BBC,” the MPs said.
In their new report the MPs said: “Sharp recognised the need to be open and transparent over facilitating an introduction of the then-prime minister to Blyth regarding the £800,000 loan guarantee and brought this to the attention of the Cabinet Secretary. However, he failed to apply the same standards of openness and candour in his decision not to divulge this information during the interview process or to this committee during the pre-appointment hearing.”
“He regrets this and apologises,” the spokesman said. “It was in seeking at the time to ensure that the rules were followed, and in the belief that this had been achieved, that Sharp acted in good faith in the way he did.
“Sharp believed he had dealt with the issue by proactively briefing the Cabinet Secretary that he was applying for the role of BBC chair, and therefore beyond connecting Blyth with Case, he recused himself from the matter.
“At that meeting, and subsequently, it was not suggested by the Cabinet Office that the act of connecting Blyth with Case was something that should be declared, and it was explicitly agreed that by not being party to the matter going forward he would be excluded from any conflict.”
The spokesman said Sharp was never involved in the arrangement of a loan between Blyth and Johnson and had not offered financial advice to the then prime minister.
“Sharp would like to apologise again to the BBC’s brilliant staff given the distraction it has caused.
“He is proud of the work the board has done driving positive change at the BBC over the last two years, and very much looks forward to continuing that work.”
Sharp is said to be looking forward to the conclusions of the investigation being carried out by Adam Heppinstall KC, ordered by the Commissioner for Public Appointments.
