Richard Sharp’s future as BBC chair in doubt over ‘very uncomfortable’ report

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Richard Sharp’s future as chair of the BBC is in doubt as he awaits the publication of a “very uncomfortable” report on how he was recommended for the job by the former prime minister Boris Johnson.

Sharp, a former Conservative party donor, was handed the task of overseeing the national broadcaster in 2021, leading to accusations of cronyism and a Tory takeover of the BBC’s management.

Sharp had failed to reveal while applying for the job that he had helped an acquaintance arrange a secret ?800,000 personal loan facility for Johnson, who was struggling with money issues.

MPs have criticised Sharp for “significant errors of judgment” in failing to declare the potential conflict of interest and the Commissioner for Public Appointments launched an investigation into the circumstances surrounding Sharp’s appointment.

Adam Heppinstall KC has finished his report. One source close to the process said the barrister’s findings were “very uncomfortable” and that Sharp’s future at the corporation was “not looking good”, but emphasised the BBC chair would have the opportunity to make his case before publication.

The final report is due to be released imminently, as first reported by the FT, with publication expected next week.

Sharp is understood to have been briefed on the contents of the report over the past week to give him an opportunity to respond, under a standard process for those criticised in official reports.

Whether Sharp chooses to resign or fight on is likely to come down to whether he feels his position is tenable – and whether he retains the support of the prime minister, Rishi Sunak. One problem facing the BBC is that it cannot remove its own chairman, who is appointed by the government on a four-year term. To complicate the web of connections, Sharp was Sunak’s boss when the prime minister was a junior banker at Goldman Sachs.

Sharp is independently wealthy and donates his ?160,000 salary for the part-time BBC job to charity. He has stated that all his financial investments are held in an arm’s-length trust but has a wide range of investments, including dealings with a Russian oligarch who has since been hit by financial sanctions.

The BBC is facing continued suggestions that it has become too close to the Conservative government after years of sustained political pressure and threats to its funding. Last month, the Guardian revealed leaked emails showing the BBC’s political team came under pressure from Downing Street and senior editors sometimes changed the tone of coverage after phone calls from No 10.

John Birt, the former BBC director general, has called for Sharp to resign, telling MPs: “The unsuitability came from the very process of navigating a loan for the prime minister at exactly the same time as applying for the job at the BBC. It’s the cosiness of that arrangement that made it unsuitable, and I wish the cabinet secretary had called it out.”