BBC chairman Richard Sharp has resigned after conceding a report found he breached the governance code for public appointments.
The former Tory donor announced that he will stand down at the end of June on Friday morning. He did so after reading the findings of barrister Adam Heppinstall KC’s review into his appointment. The review was also published on Friday morning.
The report was ordered after it emerged Sharp helped organise an £800,000 loan guarantee for then prime minister Boris Johnson.
Sharp introduced his friend Sam Blyth, Johnson's cousin who wanted to help him with his financial troubles, to the Cabinet Office permanent secretary Simon Case.
This was before Johnson recommended him for the BBC chair role, which is influential in overseeing the public broadcaster’s independence.
Heppinstall concluded Sharp “failed to disclose potential perceived conflicts of interest” to the panel that interviewed candidates and advised ministers on his appointment.
The review said Sharp risked a perception that he was recommended for the role because he assisted Johnson “in a private financial matter”.
Hepinstall also said there was the risk it would be perceived that he influenced Mr Johnson to recommend him by telling him of his application before submitting it.
Failing to disclose both issues, which he said create a risk of the BBC being seen as not independent from Downing Street, caused breaches of the governance code for public appointments.
Sharp said in a statement: “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 the facts he lays out substantiate. The Secretary of State has consulted with the BBC Board who support that view.
“Nevertheless, I have decided that it is right to prioritise the interests of the BBC.
“I feel that this matter 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 therefore this morning resigned as BBC Chair to the Secretary of State, and to the Board.”
BBC director-general Tim Davie said: “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.”
Sharp has donated £400,000 to the Conservative party and was also boss to a young Rishi Sunak during his Goldman Sachs career.
The 67-year-old was also on the board of conservative think tank the Centre for Policy Studies. He acted as an adviser to Sunak during the pandemic.
Labour shadow culture secretary Lucy Powell said the Prime Minister should have sacked Sharp and should “establish a truly independent and robust process” to replace him.
She said: “I have this morning received the report of the investigation into Richard Sharp which Labour instigated.
“The report is clear: Mr Sharp breached the rules expected of candidates by failing to disclose his involvement in a personal loan to the then PM.
“As a result, this breach has caused untold damage to the reputation of the BBC and seriously undermined its independence as a result of the Conservatives’ sleaze and cronyism.
“This comes after 13 years of the Tories doing everything they can to defend themselves and their mates. From Owen Paterson to Dominic Raab, and now Richard Sharp, instead of doing what’s best for the country the Prime Minister was more interested in defending his old banking boss.
“The Prime Minister should have sacked him weeks ago. Instead it took this investigation, called by Labour, to make him resign.
“Rishi Sunak should urgently establish a truly independent and robust process to replace Sharp to help restore the esteem of the BBC after his government has tarnished it so much.”
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