Mandelson wanted a near £550,000 payout – and got £75,000
Peter Mandelson demanded a £547,201 payout for the remainder of his time as UK ambassador to the US after being sacked, with a settlement of £75,000 being agreed with the Foreign Office, official documents have shown.
In the first tranche of documents to be released by the government relating to Mandelson’s time as ambassador, it has been confirmed that the former Labour cabinet minister demanded a hefty sum for the remainder of his work as a diplomat when he was sacked last year.
This request came despite his sacking, with Sir Keir Starmer dismissing his ambassador following the confirmation that Mandelson appeared to maintain a close relationship with Jeffrey Epstein after his first conviction.
Mandelson is currently being investigated by the police over the nature of his relationship with Epstein. He was arrested on suspicion of misconduct in public office and later released on bail, with files in the US allegedly showing he leaked sensitive information to the late paedophile around the time of the financial crisis.
Documents released by the Cabinet Office on the vetting process appear to show Foreign Office permanent under-secretary Oliver Robbins arguing that the £75,000 payment was “good value for money”.
The foreign secretary and No 10 had sight of the severance package offered to Mandelson.
One foreign office official, the HR boss Mark Power, warned that a legal case over Mandelson’s severance payment risked the “reputational damage” to the Foreign Office and cost “several hundred thousands of pounds”.
Emails also revealed that Mandelson’s “chief concern” was to arrive in the UK after his sacking “with the maximum dignity and minimum media intrusion”.
They also suggest that a No 10 official, Alisa Terry, asked about a daily “welfare check” on Mandelson after the sacking.
Mandelson wrote to colleagues in Washington upon his dismissal: “The circumstances surrounding the announcement today are ones which I deeply regret.
“I have no alternative to accepting the Prime Minister’s decision and will leave a position in which I have been so incredibly honoured to serve.
Starmer warned on Mandelson-Epstein links
The documents also showed that the Prime Minister was warned about the “reputational risks” around the appointment given Mandelson’s relationship with Epstein.
One note on the vetting process highlighted a 2019 report by JP Morgan that Mandelson maintained a relationship with Epstein after his conviction and that he was a founder of an ocean conservation group funded by the paedophile.
National security adviser Jonathan Powell, who was a political appointee, raised the alarm on the vetting process for Mandelson.
He said the process was “weirdly rushed” and unusual while noting that Foreign Office permanent under-secretary Philip Barton also raised concerns.
Powell also shared copies of his exchanges with Mandelson with Starmer, wherein the former Labour minister appeared to try to set up a meeting between Epstein and former Prime Minister Tony Blair.
Former Cabinet Secretary Simon Case also told Starmer: “If anything goes wrong, you could be more exposed as the individual is more connected to you personally.”
Warning signs ignored
Nevertheless, the Prime Minister confirmed his approval to appoint Mandelson after discussions with the then foreign secretary David Lammy, who appeared to agree with the recommendation.
Starmer’s former chief of staff Morgan McSweeney appeared to state the “issues had been addressed” around Mandelson’s relationship with Epstein.
The first publication of documents will fuel concerns over the reasoning of the Prime Minister’s initial appointment within months of taking office and subsequent sacking lack November given repeated warnings over the risks of selecting Mandelson for the UK’s top diplomatic posting.
At the time, Starmer said he sacked Mandelson as he did not know about the “extent” of his relationship with Epstein.
More documents are expected to be released in the coming weeks.
Chief secretary to the Prime Minister Darren Jones said the initial report on Mandelson did not give full details on his relationship with the paedophile and added that Starmer had already apologised for appointing the former peer, who still retains his Lords title despite being kicked out of the chamber.
“Whilst the documents point to public reports of an ongoing relationship between Peter Mandelson and Jeffrey Epstein, the advice did not expose the depth and extent of their relationship, which only became apparent after the release of further files by Bloomberg and then the United States Department for Justice,” Jones said.
“After the Prime Minister reviewed the Cabinet Office due diligence, that noted public reporting on Peter Mandelson’s relationship with Jeffrey Epstein, questions were put to Peter Mandelson by advisers in Number 10, and Peter Mandelson responded. These are matters that are currently the subject of an ongoing police investigation.”