Labor is calling for an official inquiry into allegations that the BBC chairman helped Boris Johnson secure a personal loan shortly before the prime minister recommended the appointment.
Richard Sharp, a former Goldman Sachs partner who became chairman of the BBC in 2021, denied any wrongdoing, saying he “simply connected” Johnson to the guarantor of a personal credit facility worth up to £800,000.
He added that there were “no conflicts” of interest to be declared during the application process for the BBC role, which was ongoing and involved an independent panel.
Johnson’s spokesman said the allegations were “rubbish”, saying he had not received or sought financial advice from Sharp, a donor to the Conservative party who is former Prime Minister Rishi Sunak at Goldman Sachs.
Opposition Labor Party leader Anneliese Dodds has written to the Parliamentary Commissioner for Standards, calling for an “urgent investigation into the facts of this case”, including whether the arrangements were properly disclosed.
Sharp’s involvement in arranging a loan to Johnson in 2020 to save his personal finances was first reported by the Sunday Times newspaper. The source of the £800,000 credit facility has not been disclosed but was promised by Canadian businessman Sam Blyth, a distant cousin of Johnson.
Blyth proposed the idea of acting as guarantor with Sharp, who in turn took the suggestion to Simon Case, the cabinet secretary. Labor is calling for an official investigation into whether Johnson broke parliamentary rules “by asking individuals to facilitate loan guarantees to be appointed to senior public roles”.
Before the loan ended Johnson, Blyth and Sharp gathered at Checkers, the prime minister’s official country house, for chop suey, according to the Sunday Times. A spokesman for Johnson said: “Mr Johnson actually had dinner with Mr Sharp, whom he has known for almost 20 years, and with his cousin. So what? Big.”
Sharp said: “There was no conflict as I simply connected, at his request, Mr Blyth with the cabinet secretary and there was no further involvement.”
The Cabinet Office’s propriety and ethics team wrote to the prime minister in December 2021 to ask Johnson not to engage with Sharp over his personal finances as the appointment process is open, according to the Sunday Times. Sharp was nominated by the culture secretary in January 2022.
The BBC said: “The BBC has no role in seat recruitment and there are questions for the government.”
Under the BBC’s charter, the chairman is appointed by the King, on the recommendation of the government, after a “fair and open competition” that follows the public appointments code. Candidates are expected to disclose any conflicts of interest.
The BBC was consulted on the process, job descriptions and skills required, but had no role in selecting individuals. The BBC board has no power to expel chairs; The appointment can only be terminated by the King on the recommendation of the government.
Sunak’s cabinet on Sunday stood behind Sharp’s appointment, denying any suggestion or irregularities in the recruitment process.
It appeared on the BBC Sunday with Laura Kuenssberg programme, James Cleverly, the foreign secretary, said Sharp had brought “a wealth of experience” to the BBC project.
“That’s why he was appointed chairman of the BBC,” Cleverly said. “I have absolutely no doubt that he was appointed on merit.”
However, Cleverly denied knowing anything about the Sunday Times’ claims beyond what he read in the story.
On the same programme, Rachel Reeves, Labour’s shadow finance minister, described Johnson’s claims about the BBC appointment as one of a series of ethical issues facing the government.
“It’s going to take a Labor government coming in to clean up this mess, drain the swamp, because frankly it stinks,” Reeves said.