UK Foreign Office Looks Again at Lord Mandelson's Payoff

The Foreign Office is checking a payment given to Lord Mandelson when he stopped being the UK's ambassador to the US. This is happening after details came out about his connection to Jeffrey Epstein. Police are also looking into the matter.
By Newsroom | Politics, UK |

Unpacking the Controversy Surrounding Lord Mandelson's Payoff

Recent revelations tied to Jeffrey Epstein have spurred a review of an exit payment made to Lord Peter Mandelson following his dismissal as the UK's ambassador to the United States. The Foreign Office is examining this financial settlement, a decision prompted by emerging details of Mandelson's interactions with Epstein and a subsequent police investigation. The situation has generated considerable debate, with some politicians calling for Mandelson to return the funds or donate them to charity.

Foreign Office to review Mandelson's US ambassador pay-off - 1

Timeline of Events and Key Actors

The controversy stems from Lord Mandelson's tenure as ambassador to the US, a role he held for approximately seven months before his dismissal in September of the previous year. His removal followed the public release of email exchanges, notably those within the latest US government disclosures concerning Jeffrey Epstein, which began in January. These emails indicated contact between Mandelson and Epstein, including during Mandelson's time as a member of Gordon Brown's cabinet.

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Key individuals and entities involved include:

  • Lord Peter Mandelson: The former ambassador whose exit payment is under review.

  • Jeffrey Epstein: A convicted sex offender whose association with Mandelson is central to the controversy.

  • The Foreign Office: The government department responsible for the UK's diplomatic missions and for issuing Mandelson's exit payment.

  • UK Government Ministers: Including Pat McFadden, Secretary of State for Work and Pensions, who has publicly commented on the matter.

  • Prime Minister Sir Keir Starmer: Whose handling of the situation has drawn scrutiny, with some calling for his resignation.

  • Law Enforcement: Including the Metropolitan Police, which has launched a criminal investigation into alleged misconduct in public office.

The sequence of events has unfolded as follows:

  • September [Previous Year]: Lord Mandelson is sacked as ambassador to the US.

  • January [Current Year]: New US government releases include email exchanges concerning Jeffrey Epstein.

  • Subsequent Weeks: These releases reveal further details of Mandelson's contacts with Epstein, intensifying scrutiny.

  • Recent Days: The Foreign Office confirms a review into Mandelson's exit payment. Police investigations are ongoing, with searches conducted at Mandelson's properties. Political pressure mounts for Mandelson to return the funds.

Evidence and Official Statements

Evidence pertaining to the case has emerged through government document releases and official statements:

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Foreign Office to review Mandelson's US ambassador pay-off - 3

  • Email Exchanges: The latest US government release in January, focusing on Epstein, included emails showing exchanges with Mandelson. Some of these occurred while Mandelson was a member of Gordon Brown's cabinet.

  • Source: BBC News, The Guardian, Sky News.

  • Nature of Contact: Emails suggest Epstein made payments of thousands of pounds to Lord Mandelson and his partner. Other emails indicate supportive messages from Mandelson to Epstein after Epstein pleaded guilty to sex offenses.

  • Source: BBC News, The Guardian.

  • Government Confirmation of Payout: Government sources have confirmed that the Foreign Office reached a financial settlement with Mandelson after his dismissal. The exact amount has not been disclosed, though reports suggest a "five-figure sum," equivalent to three months' salary.

  • Source: BBC News, Sky News, iNews.

  • Police Investigation: The Metropolitan Police has initiated a criminal investigation into allegations of misconduct in public office. This follows assessments by the UK government of emails that Lord Mandelson appears to have sent to Epstein while serving as Business Secretary. Searches have been conducted at two of Mandelson's properties.

  • Source: BBC News, Sky News.

  • Ministerial Commentary: Pat McFadden, Secretary of State for Work and Pensions, stated, "I think taking a payoff in these circumstances, I don’t think the public will think much of that.” He suggested Mandelson should either "hand back" the payoff or "give it to charity."

  • Source: The Guardian, ITV News.

  • Lord Mandelson's Position: Representatives for Lord Mandelson have been approached for comment. His stated position, according to reports, is that he has no record or recollection of alleged payments from Epstein and that he answered questions about his relationship with Epstein accurately during the vetting process for his ambassadorship. He has also apologized for what he termed a "bad mistake."

  • Source: BBC News, ITV News.

  • Political Scrutiny: Prime Minister Sir Keir Starmer stated that Lord Mandelson repeatedly "lied" to him about the extent of his friendship with Epstein. There have also been calls for Morgan McSweeney, Starmer's chief of staff, to resign, given his previous closeness to Mandelson and his alleged role in lobbying for his appointment.

  • Source: BBC News.

The Nature of the Payoff

The financial settlement provided to Lord Mandelson following his sacking as ambassador is a central point of contention.

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  • Confirmation of Settlement: Foreign Office sources have confirmed to the BBC that a financial settlement was indeed reached with Lord Mandelson.

  • Insight: This confirms the existence of the payment.

  • Amount: While the exact sum remains undisclosed by official sources, reports from The Times, cited by iNews, indicate it was an exit payment equivalent to three months' salary, suggesting a "five-figure" amount.

  • Nuance: The lack of a precise public figure fuels speculation.

  • Purpose of Review: The Foreign Office's review aims to examine this payment in light of the emerging details of Mandelson's association with Jeffrey Epstein and allegations of misconduct.

  • Signal: The review suggests a potential for reassessment or reversal of the payment.

Allegations of Misconduct and Information Leaks

Beyond the exit payment, significant allegations have been raised regarding Lord Mandelson's conduct.

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  • Misconduct in Public Office: The Metropolitan Police have launched a criminal investigation into allegations of misconduct in public office. This is a serious charge related to the abuse of entrusted power.

  • Impact: This investigation carries potential legal ramifications.

  • Leaking Market-Sensitive Information: Claims suggest that Mandelson may have passed market-sensitive government information to Jeffrey Epstein while serving as a cabinet minister. This type of action, if proven, could constitute insider trading or related offenses.

  • Question: Were such communications intended to provide financial advantage, and to whom?

  • Mandelson's Defense: Lord Mandelson has stated he has no recollection of payments from Epstein and believes he answered vetting questions truthfully.

  • Counterpoint: This contrasts with the implications of the released documents.

  • Calls for Investigation: There are calls for regulatory bodies, such as the Financial Conduct Authority (FCA), to examine potential market abuse related to these alleged leaks.

  • Broader Scope: This suggests the potential for wider financial and regulatory consequences.

Political Ramifications and Calls for Action

The revelations have ignited a significant political response, impacting leadership and party standing.

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  • Ministerial Disappointment: Pat McFadden, a cabinet minister, expressed personal disappointment, stating, "I think the public will think much of that" regarding the payoff. He explicitly suggested Mandelson should return the money or donate it to charity.

  • Public Opinion: This indicates a concern for public perception and trust.

  • Prime Minister's Position: Prime Minister Sir Keir Starmer has acknowledged that Lord Mandelson "repeatedly lied" to him about his relationship with Epstein. This has led to calls for Starmer's resignation from some quarters, with accusations that his judgment is "seriously wrong."

  • Leadership Scrutiny: Starmer's handling of the situation is under intense observation.

  • Role of Staff: Questions have been raised about Morgan McSweeney, Starmer's chief of staff, and his prior connection to Mandelson, including alleged lobbying for his appointment.

  • Internal Politics: This points to potential internal party tensions and the influence of key aides.

  • Document Release: In response to political pressure, the government agreed to release documents pertaining to Mandelson's appointment. This followed a climbdown after initial plans to withhold some material, indicating a move towards greater transparency.

  • Government Response: The administration is navigating calls for openness while balancing potential diplomatic concerns.

Conclusion and Future Outlook

The Foreign Office's review into Lord Mandelson's exit payment is a significant development, directly linked to the ongoing scrutiny of his past associations with Jeffrey Epstein. The convergence of emerging documentary evidence, a police investigation into alleged misconduct, and sharp political commentary has placed both Mandelson and the current political leadership under a critical lens.

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  • Key Findings:

  • A financial settlement was made to Lord Mandelson upon his dismissal as US ambassador.

  • This payment is now subject to a Foreign Office review.

  • Serious allegations of misconduct and the potential leaking of sensitive information are under criminal investigation.

  • Political figures have publicly called for Mandelson to return the payoff.

  • The Prime Minister has stated Mandelson was untruthful regarding his relationship with Epstein.

  • Implications:

  • The review could lead to the recovery of public funds if wrongdoing is established.

  • The criminal investigation carries the possibility of legal proceedings.

  • The scandal continues to pose a challenge to public trust in political figures and institutions.

  • The government faces pressure to ensure transparency and accountability.

  • Next Steps:

  • The Foreign Office is expected to conclude its review of the payoff.

  • The police investigation into misconduct allegations will progress.

  • Further document releases may occur, potentially shedding more light on the matter.

  • Political discourse surrounding the scandal is likely to persist.

Sources Used

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Frequently Asked Questions

Q: Why is Lord Mandelson's payoff being looked at again?
New information has come out about his links to Jeffrey Epstein. This has made the Foreign Office want to check the money he received when he left his job.
Q: What is the police doing?
The police are investigating claims of bad behavior in public office. They have also searched some of Lord Mandelson's homes.
Q: What do politicians think about the payoff?
Some politicians think Lord Mandelson should give the money back or give it to charity. The Prime Minister said Lord Mandelson was not truthful about his friendship with Epstein.