Richard Sharp is grilled by MPs about his involvement in arranging a loan for Boris Johnson.
Image source, DCMSBBC chairman Richard Sharp has denied giving Boris Johnson financial advice when he was prime minister.
There has been controversy over Mr Sharp’s role in loan talks involving Mr Johnson, which came before the then-PM nominated him to chair the BBC board.
The government has previously said Mr Sharp was appointed on merit.
Mr Sharp told the House of Commons Digital, Culture, Media and Sport committee on Tuesday he had not facilitated a loan to Mr Johnson.
The MPs robustly questioned Mr Sharp, telling him they could not understand why he had not been “open and transparent” about his involvement in the loan discussions during his appointment process. It was later reported by the Sunday Times.
Mr Sharp confirmed he had introduced his friend Sam Blyth to Cabinet Secretary Simon Case in late 2020, which was shortly before his appointment at the BBC.
‘Introduction agency’
Mr Sharp has previously said Mr Blyth had offered to act as guarantor on a loan – reportedly worth up to £800,000 – after reading about Mr Johnson’s money troubles in the media.
On Tuesday, Mr Sharp agreed with acting committee chairman Damian Green that he had “acted as a sort of introduction agency” between Mr Blyth and Mr Case.
He said he then “raised with Mr Blyth the fact that I’d submitted my application to be the chair of the BBC and that therefore, to avoid a conflict, or perception of conflict, I could have – and we agreed – no further participation in whatever transpired whatsoever. And I didn’t.”
Image source, Reuters
Mr Sharp described his relationship with Mr Johnson as “broadly professional”, and that he only knew of the prime minister’s financial issues from press reports.
He told the committee: “I also want to make it clear that I’ve never given financial advice to the former prime minister, he’s never asked for it, he never received it from me.”
He added: “I did not provide and have not provided the former prime minister personal financial advice, I know nothing about his [financial] affairs, I never have done.”
Mr Blyth’s second cousin is Stanley Johnson, the former prime minister’s father.
Mr Sharp explained: “I said to him [Mr Blyth] at that time, ‘You may be a family member, but you need to be very careful. Things need to be done by the book. There are rules in this country and these rules exist for a good reason.
“[I told Mr Blyth,] ‘You’re a foreigner and therefore before you contemplate doing anything, or providing any assistance to the prime minister, you should involve the Cabinet Office.'”
William Shawcross, the commissioner for public appointments, was set to examine how Richard Sharp got the BBC job, but stood aside because of past contact between the pair.
Adam Heppinstall KC has since been appointed in Mr Shawcross’s place to look into the appointment.
Mr Sharp’s appointment is also set to be examined in a separate probe from the BBC board, which will look at his current personal interests for any conflicts.