BBC Chairman Richard Sharp has resigned after being found to have broken the rules by failing to disclose his role in securing an £800,000 loan guarantee for former Prime Minister Boris Johnson.
The former Conservative Party donor announced his resignation after a review found that he twice breached the code governing public appointments, risking the perception he was not independent from the then-prime minister.
The review was ordered after it emerged Sharp introduced his friend Sam Blyth, a distant cousin of Johnson who wanted to help him with his financial troubles, to Cabinet Secretary Simon Case ahead of being recommended for the BBC role by the government.
In the report published on Friday morning, Adam Heppinstall, KC found that Sharp risked a perception that he was recommended for the role because he assisted Johnson “in a private financial matter” ahead of his appointment in 2021.
Heppinstall also said there was the risk it would be perceived that Sharp influenced Johnson to recommend him by notifying the then-prime minister of his application before submitting it.
Loan Allegations
The Sunday Times alleged on Jan. 22 that Sharp, a Tory donor and BBC chair candidate at the time, was involved in talks about financing Johnson when the then-prime minister found himself in financial difficulty in late 2020, shortly before Sharp was appointed chair of the public broadcaster.According to the report, Sharp, a former Goldman Sachs banker, got involved in November 2020 after his friend Blyth, a multi-millionaire Canadian businessman who is also a distant cousin of Johnson, floated the idea of acting as Johnson’s guarantor.
The report said Sharp in December 2020 introduced Blyth to Simon Case and spoke to Johnson. It also said that Sharp and Blyth had a private dinner with Johnson before the loan was finalised, but all three denied they had talked about Johnson’s finances at the dinner.
In January 2021, Sharp was appointed chair of the BBC on the recommendation of the prime minister and the culture secretary. The Sunday Times said neither Johnson nor Sharp declared the matter of the loan.
Sharp admitted that he had introduced his “old friend” Blyth to the Cabinet secretary, as the Canadian “wanted to support Boris Johnson.” But Sharp insisted that he “was not involved in making a loan, or arranging a guarantee,” and “did not arrange any financing.”
‘Inadvertent’
In his resignation statement, Sharp insisted that his breach of the rules was “inadvertent and not material.”“Nevertheless, I have decided that it is right to prioritise the interests of the BBC,” he added.
“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 thanked Sharp for his service 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,” Davie said.
In a letter to Sharp, Culture Secretary Lucy Frazer said that he is “held in high regard” by the BBC board but added that “I understand and respect your decision to stand down.”
‘Untold Damage’
Labour’s shadow culture secretary Lucy Powell said: “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.”
She urged Prime Minister Rishi Sunak to “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.”
Liberal Democrat leader Sir Ed Davey said: “The British people won’t stand for any more of this. Everything Conservative politicians touch turns into a mess. They are not fit to govern our great country.
“Boris Johnson should never have been allowed to appoint Richard Sharp in the first place and what’s worse is Rishi Sunak didn’t show leadership by sacking him.
“We need a rigorous, transparent, and independent process to appoint the next BBC chair, including a confirmation vote by Parliament’s cross-party Culture, Media and Sport Committee.”
