Jeffrey Epstein donated $650k to Kevin Rudd’s International Peace Institute

Kevin Rudd’s New York think tank has been embroiled in scandal after it emerged the paedophile donated to the organisation from 2011-2019.

Former Prime Minister Kevin Rudd (left) and paedophile Jeffrey Epstein. Pictures: File

The New York think tank headed by former prime minister Kevin Rudd has been embroiled in scandal after it emerged paedophile Jeffrey Epstein donated $US650,000 from 2011 to 2019.

Mr Rudd, who chaired the ­International Peace Institute during part of the time Epstein supported the organisation, ­issued a statement on Wednesday saying he had been “blindsided’’ by the donations from Epstein. “The revelations were deeply disturbing to me,’’ he said.

An investigation by Norwegian business newspaper DN ­revealed financial links between Norwegian diplomat Terje Rød-Larsen and Epstein.

Mr Rød-Larsen, who is also the president of the IPI, received a $US130,000 loan from Epstein.

According to IPI emails ­published in DN, Mr Rød-­Larsen suggested payment of $US100,000 be made to Epstein in 2016 after Mr Rudd turned down a payment of the same amount for his role on an advisory board and said IPI should receive it.

However DN reported that IPI never made the payment to Epstein.

Jeffrey Epstein and Ghislaine Maxwell in 2005 in New York City. Picture: Getty Images

“I had dinner with Kevin yesterday evening, and he said we could keep his share,” an email from Mr Rød-Larsen said. “For form’s sake we should send it to Jeff, however I am sure we will get it back many fold!”

Mr Rudd said he turned down his payment as his work on the board was “negligible”.

Mr Rudd said the loan had never previously been disclosed to the board “or to me as chair’’.

“Mr Rød-Larsen has apologised to the board for what he has described as his grave error of judgment,” Mr Rudd said. “I am deeply disappointed that the board has had to learn about so much of this through the media.”

He said that, as a consequence of this latest development, he last week convened an extraordinary board meeting and requested that Mr Rød-Larsen provide a report on these matters.

“I will be recommending to the board that an immediate and comprehensive probity review be conducted into the matters raised,” Mr Rudd said. “I will also recommend an independent accounting review by a big four global firm into any financial transactions between Epstein and the IPI.”

Mr Rudd had participated along with former Norwegian prime minister Kjell Magne Bondevik, former Israeli prime minister Ehud Barak and former US Treasury secretary Larry Summers in a project that advised the leaders of Mongolia on issues of regional and global peace and security. Mongolian authorities had reportedly offered each $US100,000 for their work although Mr Rudd said he forfeited his payment. “I participated in it and provided advice to the Mongolian president on the future of his country’s mining industry,” Mr Rudd said.

“There were no further meetings of which I am aware.’’

Mr Rudd joined the IPI board in June 2014 after retiring from politics and in June 2018 became its chair. Mr Rudd said he had never received any remuneration for his work with IPI.

He said he had “no recollection whatsoever” of meeting Epstein who committed suicide in 2019 while on remand awaiting trial. However, the former prime minister was on a teleconference call in 2014 that included Epstein and at an event in New York in 2013 that Epstein attended. “IPI records indicate that Epstein was also invited to ­attend that same function, ­although I don’t believe we ever met,” Mr Rudd said.

Kevin Rudd with International Peace Institute president Terje Rod-Larsen in 2016.

He said he had introduced a character test for private donations.

“Any significant engagement with someone as odious as Epstein must be taken ­seriously and investigated thoroughly,” Mr Rudd said.

“These revelations were deeply disturbing to me and to other members of the board. IPI’s work includes combating human trafficking and sexual violence.’’

By the time Epstein donated almost $US650,000 to the think tank he had already served time in jail for sexual abuse and rape of underage girls.

Mr Rudd in his statement said the $US650,000 donated to the IPI by Epstein represented approximately 0.9 per cent of IPI’s total revenue over those years. “The source of these donations had not previously been disclosed to the board, nor to me as chair,’’ Mr Rudd said. “IPI management has informed the board that these donations were fully disclosed to the US authorities as required by the IRS.’’

Mr Rudd said IPI was not alone in receiving donations from Epstein foundations. “Dozens of other US non-profit organisations and teaching institutions have collectively received more than $30m of donations from his foundations,” he said. “First, the IPI decided to donate an equivalent sum to suitable programs to support victims of human trafficking and sexual assault. This hardline approach contrasts with a number of other institutions that decided to keep some or all of their donations. IPI management is in the process of implementing this board decision. Second, the IPI adopted a new gift acceptance policy to prevent any future donations unless the donors satisfy a test of good character.”