Labour is calling for a parliamentary investigation into claims the chairman of the BBC helped Boris Johnson secure a loan – weeks before the then-prime minister recommended him for the role.
The Sunday Times says Richard Sharp was involved in arranging a guarantor on a loan of up to £800,000 for Mr Johnson.
Mr Sharp said he had “simply connected” people and there was no conflict of interest.
Mr Johnson’s spokesman said he did not receive financial advice from Mr Sharp.
He also dismissed Labour’s suggestion Mr Johnson could have breached the code of conduct for MPs “through failing to appropriately declare the arrangement” on his Parliamentary register of interests.
Labour’s chairwoman Anneliese Dodds has written to the Parliamentary Commissioner for Standards, Daniel Greenberg, asking for “an urgent investigation into the facts of this case”.
Foreign Secretary James Cleverly told the BBC’s Laura Kuenssberg that Richard Sharp was an “incredibly accomplished, incredibly successful individual who brings a wealth of experience with him”, and there was “no doubt he was appointed on merit”.
Mr Johnson was reported to be in financial difficulty in late 2020.
The Sunday Times says multimillionaire Canadian businessman Sam Blyth raised with Mr Sharp the idea of acting as Mr Johnson’s guarantor for a loan. It is not clear where the loan money came from.
Mr Sharp – a Conservative Party donor who at the time, was applying to be the chairman of the BBC – contacted Simon Case, the then-cabinet secretary and head of the civil service.
According to the paper, Mr Sharp, Mr Blyth and Mr Johnson had dinner together at Chequers before the loan was finalised, although they deny the PM’s finances were discussed then.
Former Goldman Sachs banker Mr Sharp was announced as the government’s choice for the new BBC chairman in January 2021. The role is recommended by the culture secretary and the prime minister.
The BBC chairman heads the board that sets the corporation’s strategic direction and upholds its independence.
The Sunday Times says candidates for such publicly-appointed roles are required to declare any conflicts of interest.
In a statement, Mr Sharp said: “There is not a conflict when I simply connected, at his request, Mr Blyth with the cabinet secretary and had no further involvement whatsoever.”
Labour had already written to the Parliamentary Commissioner for Standards calling for an investigation into the reports Mr Blyth – who is a distant cousin of Mr Johnson – had set up the loan facility.
In her letter to the commissioner, Ms Dodds cites the Sunday Times story, saying she was concerned that Mr Johnson may have breached rules “by asking for an individual to facilitate a guarantee on a loan whom he would later appoint to a senior public role”.
She said that a “lack of transparency” may “give the impression that this was a quid pro quo arrangement, something which would undermine the integrity of the democratic process, and calls into question the process by which the chairman of the BBC was appointed”.
A spokesman for Mr Johnson said: “Richard Sharp has never given any financial advice to Boris Johnson, nor has Mr Johnson sought any financial advice from him. There has never been any remuneration or compensation to Mr Sharp from Boris Johnson for this or any other service.
“Mr Johnson did indeed have dinner with Mr Sharp, whom he has known for almost 20 years, and with his cousin. So what? Big deal.
“All Mr Johnson’s financial arrangements have been properly declared and registered on the advice of officials.”
A BBC spokesman said: “The BBC plays no role in the recruitment of the chair and any questions are a matter for the government.”
The government has not yet responded to the BBC News request for comment.