The head of an investigation into Richard Sharp’s appointment as the BBC chair has recused himself from the process, admitting the pair have met several times.
William Shawcross, the commissioner for public appointments, said an independent person would be selected by his office to look at Sharp’s hiring, and said he would “play no part in this particular investigation”.
The admission showed up the “cosy relationships” under scrutiny and gave greater urgency to the need to find out the truth about Sharp’s appointment, said Labour.
Shawcross stepped back from the role a week after it was confirmed he would investigate Sharp, who allegedly helped Boris Johnson secure a loan of up to £800,000 weeks before he was recommended for the job of BBC chair by the then prime minister.
As the regulator who provides independent assurance that ministers’ selections for senior public roles and are fair and based on merit, Shawcross’s role leading the investigation into Sharp proved controversial.
His daughter is Rishi Sunak’s head of policy. When challenged by MPs at a pre-appointment hearing in September 2021, Shawcross said he would “not be doing deals around the dinner table”, though added: “I cannot say that the things I do will never be discussed.”
In a letter published on Monday, Shawcross admitted he had “met Mr Sharp on previous occasions”, and so would play no further role in the inquiry. He said his commissioner powers would be delegated to “an independent person who will be appointed by my office for this one investigation”.
The outcome – including any findings and recommendations – would be published on the commissioner’s website, he added.
Lucy Powell, the shadow culture secretary, said: “It’s taken him a week to realise a conflict of interest, sharing these cosy relationships. The truth must come out about this appointment.”
Last week, Shawcross told Powell in a letter that he intended to review the appointment “to assure myself and the public that the process was run in compliance” with the rules.
Sharp is facing a separate investigation by the BBC’s nominations committee, which is examining whether there has been any breach of its conflict of interest rules since he joined the corporation in 2021.
The Guardian revealed last week that the government-appointed panel that approved Sharp as a prime candidate included a Conservative party donor and prospective MP, as well as the wife of the former chair of the Spectator, who worked with Johnson when he edited the political magazine.
Sharp, who in the past has donated hundreds of thousands of pounds to the Conservative party, is coming under increased pressure over the affair.
At the time of the recruitment process, Sharp introduced his friend Sam Blyth, a multimillionaire Canadian businessman and distant cousin of Johnson who had proposed to act as the then prime minister’s guarantor for a credit facility, to Simon Case, the cabinet secretary and head of the civil service.
Last week, Johnson said Sharp “knows absolutely nothing about my personal finances”.
However, the Sunday Times reported that Case sent a formal note to Johnson in December 2020 advising him: “Given the imminent announcement of Richard Sharp as the new BBC chairman, it is important that you no longer ask his advice about your personal financial matters.”
Sharp has repeatedly said he did not advise Johnson or have detailed knowledge of his finances. He told the BBC last week he believed hewould be exonerated, and that he would not be quitting his job at the corporation.
MPs on the digital, culture, media and sport select committee have called Sharp before them to face questions on 7 February.
