BBC chairman Richard Sharp resigns over loan to Boris Johnson

The BBC chairman has quit after failing to declare his involvement in arranging a loan for Boris Johnson.

Richard Sharp has announced his resignation as BBC chairman after breaching conflict-of-interest rules. Picture: AFP

The chairman of the BBC has announced his resignation after he was found to have breached rules for failing to declare his involvement in arranging a loan for then prime minister Boris Johnson.

Controversy surrounding the appointment of Richard Sharp to one of Britain’s most high-profile roles had heaped pressure on Mr Johnson’s successor Rishi Sunak.

A week ago, Mr Sunak lost his deputy prime minister, Dominic Raab, who was forced out after he was found to have bullied public servants.

Mr Sharp was formerly Mr Sunak’s boss at investment bank Goldman Sachs and is a wealthy past donor to the ruling Conservative Party.

The chairman of the public broadcaster is appointed by the monarch on the advice of the government.

Mr Sharp’s appointment by Mr Johnson was criticised at the time for cronyism by a government that was said to be keen to rein in perceived critical reporting by the BBC.

Mr Sharp “failed to disclose potential perceived conflicts of interest” to a committee of MPs who were vetting his appointment by Mr Johnson in early 2021, an inquiry by a senior lawyer found.

“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,” lawyer Adam Heppinstall wrote.

In February, MPs accused Mr Sharp of “significant errors of judgment” for not disclosing his involvement in the loan.

While he was being considered for the BBC job, Mr Sharp in late 2020 put Mr Johnson in contact with a distant cousin of the prime minister who extended him a credit facility of £800,000.

Mr Sharp has denied he got the job as a quid pro quo for helping out the cash-strapped Johnson, but announced his resignation hard on the heels of Mr Heppinstall presenting his report to the government.

He acknowledged breaching conflict-of-interest rules for top UK officials, but said it was “inadvertent and not material” to his appointment to the BBC.

“Nevertheless, I have decided that it is right to prioritise the interests of the BBC,” he said, confirming he would step down at the end of June to give time for a new chair to be found.

“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.”

AFP