Police are being urged to investigate Lord Mandelson today after he was accused of leaking ‘confidential and market sensitive’ No10 emails to Jeffrey Epstein.
The former Cabinet minister finally quit Labour last night, with Sir Keir Starmer branded ‘weak’ for failing to kick him out of the party earlier.
But the storm over a huge tranche of documents released by the US administration last week shows no sign of dissipating.
Gordon Brown has demanded a Cabinet Office probe into the ‘wholly unacceptable’ disclosure of details of his government’s desperate response to the Credit Crunch.
The ex-prime minister revealed he asked No10 for a probe last September – but after two months was told no evidence could be found.
The new US material includes emails apparently forwarded to the paedophile financier by Lord Mandelson in 2009, in which key Downing Street aides and ministers discussed the UK’s resilience to the Credit Crunch crisis and what government assets might be ‘saleable’.
Other documents seemingly show Lord Mandelson – who was Business Secretary at the time – advising Epstein how he and his powerful friends could lobby against a bankers’ bonus tax.
In May 2010 – after the election but before the Coalition government took over – Lord Mandelson appeared to give Epstein advance notice of a €500billion bailout of the Euro.
What looks to be bank records from 2003 and 2004 suggest that Epstein wired the New Labour architect tens of thousands of pounds – although Lord Mandelson has said he believes they are fake.
The Liberal Democrats and SNP are both calling for police to investigate whether there is evidence of criminality in the actions of Lord Mandelson.
Some MPs are demanding his peerage is stripped from him – even though Lord Mandelson is already on a ‘leave of absence’ from Parliament and has indicated he will not return.
Downing Street said Sir Keir believes Lord Mandelson ‘should not be a member of the House of Lords’ and has asked the Cabinet Secretary to ‘urgently’ review his emails to Epstein.
In other details from the correspondence between Lord Mandelson and Epstein:
- Lord Mandelson apparently described himself as ‘wild and dangerous and twice fallen’ in an email to Ghislaine Maxwell in 2002;
- In a sign of their closeness, in August 2009 he asked for Epstein’s advice about whether to stick with partner Reinaldo – now his husband – after a row about sandals and ‘household’ expenses;
- During one grim exchange in October 2009, Epstein joked that Lord Mandelson marrying Princess Beatrice could be considered ‘incest’, adding: ‘How exciting.’
- Lord Mandelson seemingly informed Epstein that he had convinced Mr Brown to quit on May 10, 2010 before it was announced publicly.
A photograph released as part of the Epstein files apparently shows Lord Mandelson talking to a woman who is wearing a white bath robe
The PM was forced to sack Lord Mandelson from the key role of US ambassador last year after more revelations about Epstein
Lord Mandelson’s entry on the Parliament website changed to ‘non-affiliated’ today. He is on leave of absence from the House
The tranche of documents includes an email seemingly from Lord Mandelson to Epstein, talking about the UK government having ‘saleable’ assets
The 2009 memo highlighted that the government was looking to get investment moving
The memo made clear that the government was looking to sell off assets to avoid tax hikes
In a letter to Labour’s general secretary Hollie Ridley last night, Lord Mandelson said: ‘I have been further linked this weekend to the understandable furore surrounding Jeffrey Epstein and I feel regretful and sorry about this.
‘Allegations which I believe to be false that he made financial payments to me 20 years ago, and of which I have no record or recollection, need investigating by me.
‘While doing this I do not wish to cause further embarrassment to the Labour Party and I am therefore stepping down from membership of the party.’
Lord Mandelson added: ‘I want to take this opportunity to repeat my apology to the women and girls whose voices should have been heard long before now.
‘I have dedicated my life to the values and success of the Labour Party and in taking my decision, I believe I am acting in its best interests.’
In a fresh humiliation, a photo has emerged of Lord Mandelson in his underwear chatting to a woman in a bathrobe, seemingly at Epstein’s Paris apartment.
Meanwhile, there are reports the US House Oversight Committee is set to summon him to testify on his links to the paedophile financier.
Documents from the release appear to show Lord Mandelson suggesting to Epstein in 2009 that he would lobby the UK government over a levy on bankers’ bonuses.
The so-called ‘super tax’ was introduced in December 2009 by then-chancellor Alistair Darling in the wake of the huge bailouts for banks.
An email dated December 15, 2009, which appears to be from Epstein, reads: ‘any real chance of making the tax only on the cash portion of the bankers bonus’.
The reply, apparently from Lord Mandelson, reads: ‘Trying hard to amend as I explained to Jes last night. Treasury digging in but I am on case.’
Two days later, an email discussion indicates Lord Mandelson encouraged JP Morgan’s boss Jamie Dimon to call Mr Darling and ‘mildly threaten’ him.
In an email to Lord Mandelson, Epstein wrote ‘should Jamie call Darling one more time’ with an apparent reply – with the sender’s email redacted – saying: ‘Yes and mildly threaten.’
Mr Darling has since died, but wrote about a conversation with Mr Dimon in his book about the financial crisis: ‘Mr Dimon was very, very angry.. he said that his bank bought a lot of UK debt and he wondered if that was now such a good idea.
‘I pointed out that they bought our debt because it was a good business deal for them.
‘He went on to say they were thinking of building a new office in London but they had to reconsider that now.’
The bonus tax stayed in place despite the lobbying.
Tax campaigner Dan Neidle has been highlighting sensitive government emails apparently leaked to Epstein in the wake of the 2008 financial crisis.
They include one from June 2009 seemingly forwarded by Lord Mandelson, with a briefing for then-PM Gordon Brown about the UK’s economic resilience.
The message is introduced as an ‘interesting note that’s gone to the PM’.
It refers to the UK having ‘saleable assets’ – with Epstein apparently having replied to Lord Mandelson asking what they were.
Another document in the cache was an analysis of business lending in August 2009 drawn up by government minister Baroness Vadera.
The sender of the email to Epstein has been redacted, but Lord Mandelson was involved in the discussions.
The peer did not respond to requests for comment today.
On May 10, 2010 Lord Mandelson seemingly messaged Epstein about the EU’s plan for a 500billion euro bailout of the single currency.
After saying the move should ‘be announced tonight’, he said he was ‘just leaving No10’ and ‘will call’.
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Are the Mandelson emails to Epstein deeply concerning?
On May 10, 2010 Lord Mandelson seemingly messaged Epstein about the EU’s plan for a 500billion euro bailout of the single currency
In a statement, ex-PM Mr Brown said: ‘I have today asked the Cabinet Secretary to investigate the disclosure of confidential and market sensitive information from the then Business Department during the global financial crisis.
‘On September 10 last year, I wrote to the Cabinet Secretary to ask him to investigate the veracity of information contained in the Epstein papers about the sale of assets arising from the banking collapse and communications about them between Lord Mandelson and Mr Epstein.
‘That enquiry led to a response on November 19 that no departmental record could be found of any information or communication from Lord Mandelson to Mr Epstein on these issues.
‘Given the shocking new information that has come to light in the latest tranche of Epstein papers, including information about the transfer to Mr Epstein of at least one highly sensitive government document as well as other highly confidential information, I have now written to ask for a wider and more intensive enquiry to take place into the wholly unacceptable disclosure of government papers and information during the period when the country was battling the global financial crisis.
‘Given the public interest in this, I have asked that the results of the enquiry be published and done so as soon as possible.’
Liberal Democrat leader Sir Ed Davey said Lord Mandelson should face a police investigation.
He said: ‘The Epstein files suggest Peter Mandelson leaked sensitive government information to a convicted sex offender while serving as a minister, and even suggested a US bank should threaten the government to lower its tax bill.
‘These allegations are incredibly serious, it is now only right that the police investigate Peter Mandelson for potential misconduct in public office.’
SNP’s Westminster leader Stephen Flynn has written to Metropolitan Police commissioner Sir Mark Rowley, saying there must be an investigation into potential misconduct in public office.
He said there are ‘serious allegations’ in the Epstein files about sensitive state information being passed between Lord Mandelson and the convicted paedophile.
Asked whether it could be a matter for the police, Education Secretary Bridget Phillipson told BBC Radio 5 Live: ‘I’m not well placed to make that judgment but as with all of this, if there is evidence of criminality then of course that should be pursued and what we also want to see is that anyone who has any material or evidence or could shine a light on this does have responsibility to give evidence, that’s true of any of those who are implicated in what we’ve seen.’
Former No10 aide Nick Butler, who wrote one of the leaked emails, told Times Radio: ‘I think he should be ashamed of the breach of trust and the betrayal of trust that he’s been involved in.
‘I agree with Gordon Brown that there should be a full inquiry now into all the messages from the government at that time to Epstein.
‘How many more messages on really important issues, important issues on which Epstein could have made a lot of money?
‘How many messages were sent in that period? I think Peter should now resign from the Lords. I think that would be the honourable thing to do.’
Baroness Catherine MacLeod, who served as a special advisor to Alastair Darling, said the leaking of confidential emails to Epstein was a ‘betrayal’.
Speaking to Radio 4’s The World at One Lady MacLeod said: ‘I think any observer… would think it’s absolutely appalling and shocking. And a sign of terrible weakness and letting down your colleagues.’
When asked whether Lord Mandelson, who is suspected of the leaks, should be removed from the House of Lords, Macleod said: ‘I would think that it would be surprising if Peter Mandelson… would go back into the House of Lords.
‘I think to remove anybody from the House of Lords you need an Act of Parliament.
‘There are some people sitting in the House of Lords now who I think have even been to jail, so I think the whole system probably needs reformed.’
Meanwhile, bank statements appear to show the peer received some $75,000 from Epstein between 2003 and 2004, when he was a Labour MP.
Lord Mandelson said he did not recall ever receiving the payments, and questioned their authenticity.
The three million papers related to Epstein include evidence he sent £10,000 to Mandelson’s Brazilian husband Reinaldo Avila da Silva to pay for an osteopathy course.
Da Silva emailed Epstein on September 7, 2009 – two months after the paedophile was released from prison after serving 12 months of an 18-month sentence on child sex offences – and asked for money.
There was also a reference in one email inviting a woman called ‘Svetlana’ to a meeting with Lord Mandelson, although he says he has never heard of her.
Touring broadcast studios for the government this morning, Education minister Olivia Bailey said she was ‘pleased’ Lord Mandelson had resigned from the Labour Party.
‘There were clearly questions that Peter Mandelson would need to answer. He’s taken this decision, it’s the right decision,’ she told Times Radio.
But asked whether he should remain a member of the House of Lords she said: ‘The reality of the removal of a peerage is a complicated one. You have to have been, I believe, sent to jail for over 12 months or an Act of Parliament needs to be passed…
‘He is not currently in the House of Lords and I do understand that he does not intend to return.’
MPs have been turning their fire on Sir Keir over his handling of the situation.
The PM was forced to sack Lord Mandelson from the key role of US ambassador last year after more revelations about Epstein.
Labour MP John McDonnell said: ‘I warned Keir Starmer on Mandelson but he never listened.’
After the latest allegations emerged, backbencher Andy McDonald said: ‘Yet another colossal misjudgment by Mandelson. He should be immediately expelled from the Party.’
One Labour MP told The Times: ‘It’s a shame he was not expelled.’
SNP MP Stephen Flynn said: ‘Starmer was too weak to remove him.’
Tax campaigner Dan Neidle has been highlighting apparent government emails leaked to Epstein, revealed in the latest release. The name of the sender is blanked out and Lord Mandelson did not respond to questions about whether it was him
The released documents include an Epstein bank statement with a $25,000 transfer to Peter Mandelson – although the peer says he cannot remember receiving the money and believes it is fake
The correspondence between Lord Mandelson and Epstein appears to have continued long after he was jailed
Lord Mandelson seemingly informed Epstein that he had convinced Mr Brown to quit on May 10, 2010 before it was announced publicly
A Labour Party spokesman said: ‘It is right that Peter Mandelson is no longer a member of the Labour Party. Disciplinary action was underway prior to his resignation.
‘Jeffrey Epstein’s heinous crimes destroyed the lives of so many women and girls, and our thoughts remain with his victims.’
The Conservatives called for a ‘full and thorough independent investigation’ into Lord Mandelson’s appointment as US ambassador, after his resignation from the Labour Party.
Kemi Badenoch told broadcasters on a visit in London: ‘I think there is a lot that needs to be looked into, including investigating how he ever came to be appointed, and all levers which can be pulled in order to remove him from public office looked into, including removal from the House of Lords.’
A Conservative Party spokesman said: ‘Lord Mandelson is completely disgraced. Yet Keir Starmer lacked the backbone to take action, allowing Mandelson to resign from the Labour Party instead of kicking him out.
‘Keir Starmer and his chief of staff appointed Mandelson ambassador despite his relationship with Epstein, and then refused to act even as the mountain of evidence against him grew.
‘Given the Prime Minister’s appalling lack of judgment and the participation of his Downing Street operation, there must now be a full and thorough independent investigation.’
Under current arrangements, a new law would be required to remove a peerage, something that last happened more than 100 years ago to deal with members of the nobility who sided with the Germans in the First World War.
There is no precedent for using a new law to remove a specific person from the Lords.
Sir Keir urged the Lords to work with the Government to modernise disciplinary procedures to make it easier to remove disgraced peers.
Lord Mandelson told the Daily Mail yesterday he had no record or recollection of receiving any payments, and questioned whether the documents were real.
‘I have no record and no recollection of receiving these sums and do not know if the documents are authentic,’ he said.
‘I can say clearly, though, I regret ever having known Epstein. I was wrong to believe Epstein and swallow his lies following his conviction and to continue my association with him afterwards. I deeply regret doing so and apologise unequivocally to the women and girls who suffered.’
Labour MPs had been demanding that Sir Keir kick Lord Mandelson out of the party before he went of his own accord
Labour backbenchers also called for Lord Mandelson to be ousted from the Upper House. He is currently on a leave of absence from Parliament
A source insisted the financial statements could not be taken at face value without supporting evidence, pointing to formatting errors.
They highlighted the suggestion Lord Mandelson had a US social security number, saying he did not, and argued it was not possible to pay dollar cheques directly into UK bank accounts. They urged JP Morgan to confirm whether the documents were real.
The source also stressed the US Department of Justice caveat that the release ‘may include fake or falsely submitted images, documents or videos’ and that ‘some of the documents contain untrue and sensationalist claims’.
