Richard Sharp: BBC chair resigns after report finds he broke appointment rules over £800K Boris Johnson loan

Richard Sharp has resigned as BBC chairman after a report found he breached the governance code for public appointments over his involvement in a loan to Boris Johnson.

He announced on Friday morning that he will stand down at the end of June after reading the findings of barrister Adam Heppinstall KC’s review into his appointment, which has just been published. The report was ordered after it emerged he played a role in facilitating an £800,000 loan guarantee for the then Prime Minister, before being recommended for the influential role overseeing the public broadcaster’s independence.

Labour said the case had done "untold damage to the reputation of the BBC and seriously undermined its independence as a result of the Conservatives’ sleaze and cronyism".

In a statement, he said: “Mr Heppinstall’s view is that while I did breach the governance code for public appointments, he states that a breach does not necessarily invalidate an appointment. Indeed, I have always maintained the breach was inadvertent and not material, which the facts he lays out substantiate. The Secretary of State has consulted with the BBC Board who support that view.

“Nevertheless, I have decided that it is right 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. I have therefore this morning resigned as BBC Chair to the Secretary of State, and to the Board."

The Sunday Times reported that Sharp was involved in talks about financing Johnson when he found himself in financial difficulty in late 2020. The newspaper then identified Canadian businessman and multimillionaire Sam Blyth as the source of the loan given to Johnson. Sharp has since confirmed that he introduced Johnson to Blyth, who he described as an “old friend” and who also happened to be a distant cousin of the then-PM.

According to The Sunday Times, Johnson, Sharp and Blyth then had dinner at Chequers in late 2020 before the loan was finalised - although they have denied the PM’s finances were discussed. Sharp, a former Goldman Sachs banker, was announced as the government’s choice for the BBC role in January 2021. Rishi Sunak described the process to vet Sharp for the role of BBC chairman was “conducted rigorously and transparently".

In his statement today, Sharp added: "During my conversation with the Cabinet Secretary on December 4 2020, I reminded him of the fact that I was in the BBC appointments process. I believed, as a result of that conversation, that I had been removed from any conflict or perception of conflict.

“I understood this recusal to be absolute. This was my error. In my subsequent interview with the Appointments Panel, I wish, with the benefit of hindsight, this potential perceived conflict of interest was something I had considered to mention. I would like once again to apologise for that oversight – inadvertent though it was – and for the distraction these events have caused the BBC.”

Labour’s Shadow Culture Secretary, Lucy Powell, said: "The report is clear: Mr Sharp breached the rules expected of candidates by failing to disclose his involvement in a personal loan to the then PM. As a result, this breach has caused untold damage to the reputation of the BBC and seriously undermined its independence as a result of the Conservatives’ sleaze and cronyism.

"This comes after 13 years of the Tories doing everything they can to defend themselves and their mates. From Owen Patterson to Dominic Raab, and now Richard Sharp, instead of doing what’s best for the country the Prime Minister was more interested in defending his old banking boss. The Prime Minister should have sacked him weeks ago.  Instead it took this investigation, called by Labour, to make him resign."

In his report, barrister Adam Heppinstall KC recommended a “review of current conflict of interest guidance for candidates to ensure it is fit for purpose. This might include a new section addressing relationships and interactions between candidates and appointing ministers, and how confidential or sensitive issues might be disclosed”.

He also suggested “considering advice to senior officials in relation to handling (from the perspective of a minister) potential conflicts between ministers and candidates”.

Tim Davie, director-general of the BBC, said: “On behalf of the BBC Executive, I would like to thank Richard for his service to the BBC and the drive and intellect he brought to his time as chairman. Working with him over the last two years has been rewarding and Richard has made a significant contribution to the transformation and success of the BBC. The focus for all of us at the BBC is continuing the hard work to ensure we deliver for audiences, both now and in the future.”