BBC chairman resigns following Boris Johnson loan scandal

The chairman of the BBC has resigned after he was found to have broken the rules by failing to disclose he played a role in helping Boris Johnson get a £800,000 loan.

Richard Sharp announced yesterday that he will stand down at the end of June from the role which oversees the independence of the public broadcaster.

A review by Adam Heppinstall found that Mr Sharp, who is a former Tory donor, twice breached the code for public appointments, risking a perception that he was not independent from the then-prime minister.

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In his resignation statement, Mr Sharp insisted that his breach of the rules was “inadvertent and not material”.

LONDON, ENGLAND - APRIL 28:  A General view of BBC Broadcasting House on April 28, 2023 in London, England. A report published today found that BBC Chairman Richard Sharp, who was appointed in February 2021, failed to disclose conflicts of interest while being interviewed for his role. (Photo by Neil P. Mockford/Getty Images)LONDON, ENGLAND - APRIL 28:  A General view of BBC Broadcasting House on April 28, 2023 in London, England. A report published today found that BBC Chairman Richard Sharp, who was appointed in February 2021, failed to disclose conflicts of interest while being interviewed for his role. (Photo by Neil P. Mockford/Getty Images)
LONDON, ENGLAND - APRIL 28: A General view of BBC Broadcasting House on April 28, 2023 in London, England. A report published today found that BBC Chairman Richard Sharp, who was appointed in February 2021, failed to disclose conflicts of interest while being interviewed for his role. (Photo by Neil P. Mockford/Getty Images)

“Nevertheless, I have decided that it is right to prioritise the interests of the BBC,” the former Goldman Sachs banker added.

The Prime Minister defended himself from suggestions he should have sacked Mr Sharp weeks ago, arguing it was right to follow the “proper process”.

Mr Sunak declined to commit to ensuring Mr Sharp’s replacement is not a political appointment, telling broadcasters on a visit to Scotland he will follow the “established” procedure.

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The review was ordered after it emerged he introduced his friend Sam Blyth, a distant cousin of Mr Johnson who wanted to help him with his financial troubles, to Cabinet Secretary Simon Case ahead of being recommended for the role by the Government.

The BBC Board said: “We accept and understand Richard’s decision to stand down.”

BBC director-general Tim Davie thanked Mr Sharp for his service to the BBC and “the drive and intellect he brought to his time as chairman”.

Labour’s shadow culture secretary Lucy Powell said Mr Sharp had “caused untold damage to the reputation of the BBC and seriously undermined its independence as a result of the Conservatives’ sleaze and cronyism”.

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“The Prime Minister should have sacked him weeks ago. Instead it took this investigation, called by Labour, to make him resign,” she added.

In a letter to Mr Sharp, Culture Secretary Lucy Frazer said that he his “held in high regard” by the BBC board but added that “I understand and respect your decision to stand down”.

Mr Heppinstall’s report considered how Mr Sharp had told Mr Johnson that he wished to apply for the role ahead of his application in November 2020.

And it considered how he met Cabinet Secretary Simon Case the following month regarding the introduction to Mr Blyth over the then prime minister’s financial affairs.

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Mr Sharp “failed to disclose potential perceived conflicts of interest to the panel which interviewed candidates and advised Ministers”, the barrister ruled.

He formally took up the four-year appointment, ultimately approved by Mr Johnson, in February 2021.

The outgoing chairman insisted he made the introduction “with the best of intentions” to ensure all rules were being followed.

He said he believed by reminding Mr Case he was in the running for the job that he had removed any perceived conflict of interest.

“I understood this recusal to be absolute. This was my error,” Mr Sharp said.