Richard Sharp was forced to resign as BBC chairman after a damning report found he breached public appointment rules by failing to declare he had helped to facilitate a loan for Boris Johnson.
The independent review by Adam Heppinstall KC ruled that Mr Sharp had broken the rules as he “failed to disclose potential perceived conflicts of interest” to the panel interviewing him for the job at the head of the BBC.
Mr Sharp said he was quitting to “prioritise the interests” of the broadcaster.
Labour and the Lib Dems said the incident had damaged the reputation of the broadcaster and undermined its record of impartiality. They called for a more transparent appointment process.
The report was ordered after it emerged Mr Sharp had helped facilitate an £800,000 loan guarantee for the then prime minister before he was recommended for the role overseeing the public broadcaster’s independence.
It also found that Mr Johnson had personally approved his appointment at the BBC, despite Mr Sharp having helped him facilitate the loan.
And it added that, as a result of Mr Sharp’s relationship with Mr Johnson, “there may well have been a risk of a perception that Mr Sharp would not be independent from the former prime minister, if appointed”.
Mr Heppinstall’s report read: “The successful candidate, Mr Richard Sharp, failed to disclose potential perceived conflicts of interest to the panel which interviewed candidates and advised ministers on who to appoint.”
Mr Sharp informed Mr Johnson he wanted to apply for the BBC job before making his application and before being interviewed told the then PM he would meet with Cabinet Secretary, Simon Case, to introduce him to someone who wanted to help with his personal finances.
The report said: “These matters gave rise to a potential perceived conflict of interest. There is a risk of a perception that Mr Sharp was recommended for appointment because he assisted (to the very limited extent of attempting to make the introduction to the Cabinet Secretary mentioned above) the former prime minister in a private financial matter, and/or that he influenced the former prime minister to recommend him by informing him of his application before he submitted it.”
Announcing his resignation, Mr Sharp said: “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.”
Mr Sharp said he had informed the Cabinet Secretary that he was in the BBC appointments process when they had discussed the loan for Mr Johnson. He said he believed this would free him of accusations of any conflict of interest.
“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,” Mr Sharp said.
Following his announcement, the BBC Board put out a statement saying it “believes that Richard Sharp is a person of integrity”.
“We accept and understand Richard’s decision to stand down,” the board said.
Labour’s shadow Culture Secretary, Lucy Powell, who requested the report in the first place, said the breach had “caused untold damage” to the broadcaster.
“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,” she said.
“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.”
She called on the PM to “urgently establish a truly independent and robust process to replace Sharp to help restore the esteem of the BBC”.
