Officials are sorting through a Covid Inquiry-style avalanche of documents, emails and WhatsApps relating to Lord Mandelson’s appointment – believed to run to the high tens of thousands
The Peter Mandelson saga risks engulfing people at the top of Government, with senior figures preparing to disclose messages from before and after he became US ambassador.
Officials are sorting through a Covid Inquiry-style avalanche of documents, emails and WhatsApps relating to Lord Mandelson’s appointment – which is believed to run into the high tens of thousands. Some files could be released fairly swiftly but those deemed sensitive will be disclosed to Parliament’s intelligence watchdog, which will have the power to block publication on national security ground or if they pose a risk to the US-UK relationship.
There are fears among diplomats some of the emails could inadvertently offend thin-skinned Donald Trump or other world leaders. A Whitehall source said: “I think the impact on international relations could be quite significant if this is not handled discreetly.”
It comes as police raided two of Lord Mandelson’s homes as part of an investigation into allegations he leaked sensitive information to paedophile Jeffrey Epstein while he was serving in Gordon Brown’s Government. Mandelson has previously denied criminal wrongdoing relating to his friendship with paedophile Epstein, who died in a New York prison cell in 2019.
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Documents released by the US Department of Justice at the weekend included emails between Mandelson and Epstein, that suggest the then-Cabinet member leaked confidential government information to the financier after the 2008 financial crash.
Files released last Friday indicate Epstein was sent details of internal discussions from the heart of the UK government after the global financial crisis. Mandelson, the then-business secretary, appeared to tell Epstein he would lobby ministers over a tax on bankers’ bonuses in 2009, and to confirm an imminent bailout package for the euro the day before it was announced in 2010.
Bank statements from 2003 and 2004 appeared to show he received payments totalling 75,000 US dollars from the financier, and Epstein is also said to have paid for an osteopathy course for Mandelson’s husband. Mandelson said he had no recollection of the payments.
Downing Street has not set out a timeline for the release of the documents, which Keir Starmer believes will prove Lord Mandelson lied to him over his ties to Epstein. The Prime Minister is under intense pressure from his own MPs after the worst week of his premiership, with some breaking cover to call for him to quit.
In a speech on Thursday, the Prime Minister apologised to Epstein’s victims for believing Mandelson’s “lies”. He said “none of us knew the depth of the darkness” of their friendship when he was appointed as US ambassador.
Allies suggest he is absolutely furious with Mandelson, who he sacked last year after fresh revelations about his links to Epstein. Mr Starmer had intended to publish files on Wednesday before Scotland Yard asked Downing Street to hold fire to avoid prejudicing its investigation into allegations of misconduct in public office against Mandelson.
No10 again said Mr Starmer had confidence in his chief aide Morgan McSweeney, who some MPs blame for the decision to hand Mandelson the Washington job.
Home Office Minister Mike Tapp urged MPs to stand by the PM, saying: “I believe that if we stick with Keir Starmer, which we will, then that corner will turn faster and people will start to feel it.”
But former No10 comms chief James Lyons said: “I don’t think anyone can understate the gravity of the situation. I think this is at least the biggest scandal since the expenses scandal of 2009. I think we could just be in the foothills here, we don’t know what other public figures could be dragged into this.”
Luke Sullivan, Starmer’s former political director, said: “Until the documents are out there, it’s hard to see it moving on. We are in a limbo. MPs will go back to their constituencies this weekend and I suspect people will be left in no doubt about what their constituents think about it.”
He added: “This scandal has got all the makings of the perfect conditions to lead into a right-wing populist government under Nigel Farage. They are the main beneficiaries of this. It’s depressing.”
Lord Mandelson has yet to speak publicly, but the BBC said it understood he maintains he did not act criminally and that his actions were not for personal gain. The former Labour grandee has quit his party and stood down from the House of Lords.
