Public Appointments Commissioner William Shawcross has recused himself from the investigation into Richard Sharp’s appointment as BBC chairman because he has met Sharp in the past.
Shawcross said on Jan. 23 that he would review the competition that led to Sharp’s appointment after allegations emerged that Sharp had helped secure an £800,000 ($987,000) loan guarantee for former Prime Minister Boris Johnson, who later appointed him to the BBC position.
The commissioner said at the time that he wanted to assure the public that “the process was run in compliance with the government’s governance code for public appointments.”
But in a letter to the chair of the Digital, Culture, Media and Sport (DCMS) Committee of the House of Commons on Monday, Shawcross wrote: “As I have met Mr. Sharp on previous occasions, I have decided to recuse myself from this particular investigation.
“I will be delegating my powers as commissioner under the 2019 Order in Council to an independent person who will be appointed by my office for this one investigation. They will have sole responsibility and will be supported by my officials.”
But he said he will continue with all his other regulatory functions as commissioner.
Labour’s shadow culture secretary Lucy Powell said on Twitter: “It’s taken him a week to realise a conflict of interest, sharing these cosy relationships. The truth must come out about this appointment.”
Shawcross, who was recommended by Johnson in his role as commissioner for public appointments, is also the father of Eleanor Shawcross, head of the policy unit of Number 10 Downing Street.
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 Sam 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 Cabinet Secretary and Head of the Civil Service Simon Case and spoke to the prime minister. 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 released a statement on Jan. 23, apologising to staff for the “distraction” the row has caused to the BBC.
He 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.”
He added: “I am proud and honoured to have been appointed as the chairman of the BBC. I have never hidden my longstanding relationship with the former prime minister, however I believe firmly that I was appointed on merit, which the Cabinet Office have also confirmed.”
He said he had agreed with the BBC board’s Senior Independent Director Sir Nicholas Serota that the committee shall “assess” the matter when it next meets.
Johnson also said Sharp has no knowledge of his personal finances, calling the row “a load of complete nonsense.”
Speaking to Sky News last week, Johnson said, “Let me just tell you, Richard Sharp is a good and wise man but he knows absolutely nothing about my personal finances.”
In a follow-up report published on Jan. 29, The Sunday Times alleged that Johnson was warned by officials on Dec. 22, 2020, to stop discussing his financial arrangements with Sharp, who was due to be named for the BBC role in the following month.
Citing a leaked Cabinet Office memo, the paper said guidance was issued by top civil servant Case after Johnson and Sharp sought advice on accepting the loan from Blyth.
The paper quoted advice issued by Case, which stated, “Given the imminent announcement of Richard Sharp as the new BBC chair, it is important that you no longer ask his advice about your personal financial matters.”
A spokesman for the former prime minister said Sharp has “never given any financial advice to Boris Johnson, nor has Mr. Johnson sought any financial advice from him.”
A Cabinet Office spokesman said, “We do not comment on leaks.”
