Richard Sharp is battling to remain as chair of the BBC, ahead of the publication of a “very uncomfortable” report into how he was appointed to the position by Boris Johnson – and why he failed to declare his role in organising a loan for the former prime minister.
Who is Richard Sharp and what is his role at the BBC?
Sharp, 67, is a wealthy former Goldman Sachs banker and Conservative party donor who was appointed chair of the BBC in early 2021.
The job advert for the role said the successful candidate must ensure “the provision of impartial, high-quality and distinctive output and services” and act as the “most senior representative and ambassador of the BBC”.
It is a non-executive role, meaning Sharp is officially there to support and oversee the work of the BBC rather than running the organisation on a day-to-day basis.
How did Sharp get the job as BBC chair?
The BBC likes to insist on its independence from government but its governance and funding structure are closely tied to the British state. Ministers control the BBC’s main source of funding by setting the rate of the licence fee and also can make appointments to the BBC board.
One of the jobs that ministers control is that of BBC chair, the person running the corporation’s board. The BBC’s charter requires the government to run a “fair and open competition” for the job, with the government’s choice of candidate subjected to a public cross-examination by a parliamentary select committee before they are installed.
In reality, any prime minister can be fairly confident of ensuring their preferred candidate gets the role – and Johnson’s government made no secret of its willingness to put pro-Tory allies in key cultural positions.
Did anyone else apply for the job?
Johnson initially attempted to appoint his former boss, the ex-Daily Telegraph editor Charles Moore, to the role of BBC chair. When that attempt failed, he turned to Sharp, who was publicly tipped for the job in October 2020 – well before the deadline for applications closed.
Soon afterwards ITV’s political editor Robert Peston reported that other candidates were told not to bother sticking in an application: “Don’t waste your time applying, the PM has made up his mind it will be Richard Sharp.” This turned out to be correct.
Why is Sharp being investigated?
It’s all about an £800,000 loan facility obtained by Johnson during the period Sharp was applying to be BBC chair.
Johnson’s personal finances were in a poor state while he was prime minister as he was struggling with the costs of an expensive divorce and had lost the £275,000 salary he used to receive for his Daily Telegraph column.
Around the same time that Sharp applied to be BBC chair, he was approached by an old friend, Sam Blyth.
Blyth, a Canadian businessman who also happened to be a distant cousin of Johnson, had read about the prime minister’s money troubles in the media and wanted to offer financial assistance.
Sharp introduced Blyth to Simon Case, the UK’s top civil servant. The businessman then acted as guarantor on an £800,000 credit facility for Johnson, with the financial arrangement kept secret from the public.
Why didn’t Sharp declare the potential conflict of interest in helping to arrange a loan for the PM who could give him a high-profile job?
This is a good question. Sharp was criticised by MPs for “significant errors of judgment” in failing to declare this. The arrangement was only publicised after the Sunday Times obtained details about it earlier this year.
What happens next?
There are two parallel investigations into Sharp. One is an internal process being run by the BBC. The other is being conducted by a leading lawyer on behalf of the commissioner for public appointments. The latter is believed to be very damning of Sharp and is expected to be released imminently.
How can Sharp be removed from his position?
He can go either through resignation or by a formal ministerial order.
One option is that Sharp feels his position is untenable and distracting for the BBC and he chooses to step down voluntarily. Another is that Sunak and his team have a quiet word and make clear they have lost confidence in Sharp.
In extreme circumstances, the BBC chair could be forcibly removed if ministers conclude he is “unable, unfit or unwilling” to continue.
Who could replace Sharp as chair of the BBC?
If Sharp resigned, the government would immediately appoint one of the BBC’s other non-executive directors as a temporary acting chair. Current non-executives include the former technology executive Shumeet Banerji, the broadcaster Muriel Gray and the financier Damon Buffini.
The most explosive option would be to appoint Robbie Gibb, a board member who was previously Theresa May’s communications chief and has pushed a pro-Conservative agenda at the BBC.
The government would then have the option of making a new permanent appointment with a fresh four-year term in office. This could mean that an incoming Labour government has to deal with a Tory-appointed BBC chair until 2027.
