Richard Sharp is grilled by MPs about his involvement in discussions about a loan for Boris Johnson.
Image source, DCMSBBC chairman Richard Sharp has denied that he facilitated a loan for Boris Johnson 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 given Mr Johnson financial advice.
The MPs robustly questioned Mr Sharp, with one telling him she could not understand why he had not been “open and transparent” about his involvement in the loan discussions during his appointment process.
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.”
Although he accepted he was “a go-between” for Mr Blyth and the Cabinet Office, 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. I didn’t facilitate a loan.
“I’ve nothing to do with it whatsoever. I’m not party to anything that then happened or didn’t happen. I’ve no knowledge of a bank. I’ve no knowledge of the actual loan.”
Image source, Reuters
Mr Sharp, a former investment banker and Conservative donor, described his relationship with Mr Johnson as “broadly professional”, and that he only knew of the prime minister’s financial issues from press reports.
It had not crossed his mind to mention the loan discussion when he appeared in front of the committee during his appointment process, he said.
Asked whether he regretted not doing so, Mr Sharp replied: “Obviously I regret this situation.”
But Labour MP Kevin Brennan accused the BBC chairman of a “monumental failure of judgment” in not disclosing it.
‘Conflict of interest’
Another Labour MP, Julie Elliott, told Mr Sharp that “it sounds, sitting here, that you were hiding it, that’s how it comes across”, which he said was not the case.
She asked if he could see that his involvement could be perceived as a conflict of interest.
He replied: “I can see with the benefit of hindsight, particularly with some of the assertions that have been made, that that is a perfectly legitimate issue for you to raise.”
At the time, Mr Sharp did tell the cabinet secretary about his conversation with Mr Blyth. The Sunday Times reported on his involvement in the loan discussions last month.
Mr Sharp said: “It’s manifest that this has cause embarrassment for the BBC and I regret that.”
He added: “I acted in good faith to ensure that the rules were followed and in that sense I have no regret for that.”
Mr Blyth’s second cousin is Stanley Johnson, the former prime minister’s father.
William Shawcross, the commissioner for public appointments, was set to examine how Mr 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.