Due of Mandelson's connections to Epstein, the PM issued a "reputational risk" warning.
Prior to his confirmation as the US ambassador, Sir Keir Starmer was informed that Lord Mandelson's connection to Jeffrey Epstein constituted a "reputational risk".
According to government-released documents, the prime minister received counsel stating that the couple's relationship persisted following the financier's 2008 sentence for obtaining an underage female.
The due diligence procedure "fell short," according to PM chief secretary Darren Jones, and the government has already taken action to rectify "weaknesses in the system."
The BBC believes that Mandelson disputes this claim, but the documents also indicate that he looked into the prospect of receiving a severance payment of almost £500,000 following his dismissal.
In the end, the Treasury consented to a £75,000 payout.
According to the BBC, Lord Mandelson asserts that he was quick to agree to the amount that the Foreign Office ultimately paid him and made it very clear that he had no intention of taking his case to an employment tribunal, and that he would not have been eligible for any payment had any concerns about his lying been brought up.
Following fresh disclosures regarding the depth of his acquaintance with Epstein, Lord Mandelson was dismissed as the United Kingdom's ambassador to the United States last September.
The 147-page files are the first to be made public in relation to his appointment.
In order to prevent interfering with the ongoing criminal investigation into Lord Mandelson, the Metropolitan Police has requested that certain of the documents that are scheduled for publication be withheld.
Supporters claimed that Lord Mandelson's connections in politics and industry, along with his charm, would help him forge a solid rapport with the new Trump government.
However, a due diligence report that was delivered to the PM on December 11, 2024, nine days prior to his confirmation as ambassador, brought up several concerns that would provide a "reputational risk".
It cited a 2019 study that the US bank JP Morgan commissioned, which concluded that Epstein seemed to "keep an especially close relationship" with Lord Mandelson.
According to the affidavit, the peer allegedly stayed at Epstein's home in June 2009 while the financier was incarcerated.
The prime minister has insisted that when Mandelson was chosen, he was unaware of the breadth and depth of their relationship.
The report also identified further reputational issues associated with Lord Mandelson's prior government resignations, both of which had to do with money.
The recruitment process for Lord Mandelson was deemed "weirdly rushed" by Jonathan Powell, the PM's national security adviser, according to other government-published documents.
Powell expressed worries "about the individual and reputation" to Sir Keir's then-chief of staff, Morgan McSweeney, in a call recorded on September 12, 2025, the day after Lord Mandelson was fired.
According to the memo, Powell also asserted that Philip Barton, the Foreign Office's top civil servant at the time, had "reservations regarding the appointment."
Severance compensation
According to a Treasury document, discussions over Lord Mandelson's severance package started when the peer suggested that he would be eligible for £547,201, which is the remaining amount of his four-year salary.
According to an email, Lord Mandelson told a Foreign Office official after being fired that he wished to depart the United States "with the maximum dignity and minimum media intrusion" and that he should "expect to be treated as such" because he was still a civil servant.
Lord Mandelson's stance on severance pay was deemed "wrong and unsatisfactory" by Jones, who addressed MPs.
The PM's chief secretary made a statement about the documents in Parliament, saying that although the government "would not have preferred to pay £1" to Lord Mandelson, a settlement was reached to prevent far greater expenses from a protracted legal dispute.
The Liberal Democrats demanded that Lord Mandelson contribute any payment to charity, while the Conservatives questioned why government consented to any amount.
According to Tory leader Kemi Badenoch, Sir Keir ought to take the documents into consideration for his role as prime minister.
According to her, the disclosure revealed that he "has not been honest with the country" regarding the scope of his knowledge regarding Lord Mandelson and Epstein's relationship.
Through a legislative process known as a humble address, which was initiated by the Conservatives, MPs voted for the records to be revealed, forcing the administration to make them public.
Post a Comment