BBC chairman Richard Sharp on Friday resigned after a report found that he failed to disclose a potential conflict of interest over playing a role in getting Boris Johnson an £800,000 loan guarantee.
Adam Heppinstall KC’s review found the former Tory donor twice breached the code governing public appointments, risking the perception he was not independent from the then prime minister. Amid a cronyism row, Mr Heppinstall concluded that Mr Sharp “failed to disclose potential perceived conflicts of interest” to the panel that interviewed candidates and advised ministers on his appointment.
In his resignation statement, Mr Sharp acknowledged that the report concluded that he had breached the Government’s code but said it was “inadvertent” and he was quitting to “prioritise the interests” of the broadcaster.
He said: “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.” The former banker announced he will stand down in June — sparing Rishi Sunak having to sack his former Goldman Sachs boss.
The Prime Minister, who is facing calls to make the process of selecting a new BBC chairman more transparent, said he has not spoken to Mr Sharp following his resignation.
Mr Sunak, who is in Glasgow for the Scottish Conservative conference, said: “I haven’t seen the report but I understand he tendered his resignation to the Secretary of State and she has accepted it.”
The report was ordered after it emerged that Mr Sharp played a role in facilitating a loan guarantee from Canadian millionaire Sam Blyth to Mr Johnson before being recommended for the influential role overseeing the public broadcaster’s independence.
Mr Sharp confirmed he had introduced his friend Mr Blyth to Cabinet Secretary Simon Case in late 2020 during a grilling in front of MPs earlier this year. He had previously said Mr Blyth had told him he wanted to provide financial assistance to Mr Johnson after reading about the then-PM’s money troubles.
Mr Heppinstall said Mr Sharp had been appointed after “a good and thorough process” which had seen government officials ask all “candidates to declare any potential conflicts of interest in their application and at interview”.
But he added: “The successful candidate, Mr Richard Sharp, failed to disclose potential perceived conflicts of interest to the panel which interviewed candidates and advised ministers on who to appoint.”
The lawyer said that while he could “not judge his independence in office” Mr Sharp’s actions had led to “a breach of the governance code because the panel was unable at the time to advise ministers on these matters”. He also said Mr Sharp’s failure to tell the panel he had spoken to Mr Johnson about his application for the BBC role “does amount to a failure to disclose a potential perceived conflict of interest”.
He added: “Whilst it might have been appropriate for Mr Sharp to inform his ‘boss’ of his application particularly in light of Mr Sharp’s work at a time of national emergency, it was also appropriate for him to have informed the panel of the conversation.”
Culture Secretary Lucy Frazer said she “respected” Mr Sharp’s decision to stand down. In a letter to him, she praised his commitment to public service, adding: “I especially applaud the work you did during the pandemic.”
Opposition parties condemned the report findings. Lucy Powell MP, Labour’s shadow culture secretary, said: “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.”
