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BBC chief quits after controversy over role in loan deal for Boris Johnson

BBC has been under political pressure after it was revealed Richard Sharp helped arrange the line of credit weeks before his appointment at the UK's national broadcaster.

Reuters

A screen inside BBC headquarters broadcasts a statement by Richard Sharp following his resignation, in London / Photo: Reuters

The chairman of the BBC has quit after a report found he failed to disclose a potential conflict of interest over his role in arranging a loan more than two years ago for Boris Johnson, as scandals from the former prime minister's turbulent term continue to rattle UK public life.

The publicly funded national broadcaster has been under political pressure after it was revealed that Richard Sharp helped arrange the line of credit weeks before he was appointed to the BBC post on the government's recommendation.

The 800,000 pound ($1 million) line of credit came from wealthy Canadian businessman Sam Blyth, a distant cousin of Johnson's. It was facilitated by Sharp, a former Goldman Sachs banker and Conservative Party donor, who arranged a meeting between Blyth and the UK's top civil servant to discuss Blyth's offer of financial help.

Johnson was then Conservative Party leader as well as British prime minister.

'Conflict of interest'

A report on the episode by senior lawyer Adam Heppinstall published on Friday found Sharp "failed to disclose potential perceived conflicts of interest."

The report found Sharp did not reveal his role in the loan guarantee to the BBC appointments panel before he was appointed chairman in early 2021.

"There is a risk of a perception that Mr Sharp was recommended for appointment because he assisted … the former prime minister in a private financial matter," Heppinstall wrote in his report.

"There may well have been a risk of a perception that Mr Sharp would not be independent from the former prime minister, if appointed," he said.

Sharp said he would remain in his BBC role until the end of June while the search for a successor takes place. He said he made an "inadvertent" breach of the disclosure rules and was quitting to "prioritise the interests of the BBC."

"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," he said.

Sharp is the latest in a string of politicians and officials brought down through their association with Johnson, who became prime minister in 2019 and led Britain out of the European Union the following year.

SOURCE: AP