The Metropolitan Police has launched a criminal probe into allegations Lord Peter Mandelson passed ‘market-sensitive information’ to Jeffrey Epstein.
Files released by the US Department of Justice apparently showed Lord Mandelson giving material to the paedophile financier while serving as business secretary in Gordon Brown’s Labour administration as it dealt with the 2008 financial crash and its aftermath.
The Cabinet Office had passed material to the police after an initial review of documents released as part of the so-called Epstein files found they contained ‘likely market-sensitive information’ and official handling safeguards had been ‘compromised’.
Meanwhile, former prime minister Brown has written to Met Police boss Sir Mark Rowley with ‘information relevant to his investigation of Lord Mandelson’s disclosure of market sensitive and confidential Government information’.
Sir Keir Starmer told Cabinet earlier on Tuesday that he was ‘appalled’ by the revelations and the apparent forwarding of sensitive internal discussions about the Credit Crunch was ‘disgraceful’.
The Prime Minister warned ministers that although Lord Mandelson’s behaviour was ‘gobsmacking’ he was ‘not reassured the totality of the information had yet emerged’.
Sir Keir also said he would act ‘legislatively if necessary’ to remove Lord Mandelson from the Upper House. A law was being drafted that could also strip his title, with ‘nothing off the table’.
Conservative leader Kemi Badenoch has also hit back tonight saying that although it is ‘right’ there is a full criminal investigation into allegations against Lord Mandelson, it ‘should not distract from the fact that the Prime Minister appointed a man who was the close friend and associate of a notorious and convicted paedophile’.
A criminal investigation has been launched into allegations Lord Peter Mandelson passed market-sensitive information to paedophile financier Jeffrey Epstein (pictured together in an undated photo)
Sir Keir Starmer was forced to sack Lord Mandelson from the key role of US ambassador last year after more revelations about Epstein (pictured together in February last year)
On May 10, 2010, Lord Mandelson seemingly messaged Epstein about the EU’s plan for a 500billion euro bailout of the single currency
Lord Mandelson is now intending to retire from the House, but will still be able to refer to himself as ‘Lord’ unless legislation is passed. A No 10 spokesman said it was ‘right’ that he was leaving.
Commander Ella Marriott, of the Metropolitan Police, said: ‘Following the further release of millions of court documents in relation to Jeffrey Epstein by the United States Department of Justice, the Met received a number of reports into alleged misconduct in public office including a referral from the UK Government.
‘I can confirm that the Metropolitan Police has now launched an investigation into a 72-year-old man, a former Government Minister, for misconduct in public office offences.
‘The Met will continue to assess all relevant information brought to our attention as part of this investigation and won’t be commenting any further at this time.’
It comes after the former Cabinet minister finally quit Labour on Monday, with Sir Keir branded ‘weak’ for failing to kick Lord Mandelson out of the party earlier over his links to the notorious paedophile.
Gordon Brown also revealed earlier this week that 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 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.
And 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 Tories demanded a further probe into Lord Mandelson’s conduct while US ambassador to review what information was shared with private companies, including Palantir.
Lord Mandelson also brokered a meeting between Sir Keir and the tech firm in February last year.
The Conservatives also want the Government to publish documents related to its vetting of Lord Mandelson prior to his appointment as US ambassador by Sir Keir.
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.
Ex-PM Gordon Brown has written to the Met Police boss with ‘information relevant to his investigation of Lord Mandelson’s disclosure of market sensitive and confidential Government information’ (pictured together in 2010)
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
Peter Mandelson in photo released as part of the Jeffery Epstein-related files by US Justice
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 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.
Lord Mandelson has insisted that nothing in the Epstein files shows he broke the law.
However, as recently as last night the New Labour architect – appointed as US ambassador by the PM barely a year ago – was sounding defiance in an interview, insisting he was simply ‘too trusting’ of Epstein and denied that his career in public life is over.
