Mandelson Files: Bombshell Documents Reveal Epstein Warnings and Payout Details
The government has released the first batch of explosive documents concerning Lord Peter Mandelson's controversial appointment as US ambassador, months after the disgraced politician was forced to resign when the full extent of his relationship with convicted paedophile Jeffrey Epstein became public. The nearly 150-page dossier, published on the government's website, reveals that Prime Minister Sir Keir Starmer received clear warnings about Mandelson's ongoing connections with Epstein before making the 2024 appointment.
Starmer Warned About 'Reputational Risk' from Epstein Links
The documents disclose that the prime minister was explicitly cautioned about what officials termed a "general reputational risk" in appointing Lord Mandelson due to his relationship with Epstein. A December 2024 due diligence report contained a dedicated section titled 'Relationship With Jeffrey Epstein' which detailed how their association continued even after Epstein's 2008 conviction for procuring an underage girl.
The report specifically noted: "Mandelson reportedly stayed in Epstein's house while he was in jail in June 2009." This relationship reportedly spanned from 2009 to 2011, beginning when Lord Mandelson served as business minister and continuing after the Labour government ended.
However, Chief Secretary to the Prime Minister Darren Jones later told MPs that this due diligence report "did not expose the depth and extent" of Mandelson's relationship with the convicted sex offender.
Taxpayer-Funded £75,000 Payout Revealed
The files reveal that Lord Mandelson received a £75,000 severance payment funded by taxpayers following his dismissal from the ambassador role. This payout came after the disgraced peer had demanded a full contract payout exceeding £500,000 during severance negotiations.
Mr. Jones characterized Mandelson's request for over half a million pounds as "inappropriate and unacceptable," noting it was more than six times the final settlement amount awarded.
Officials Raised Concerns About 'Weirdly Rushed' Appointment Process
Senior government officials expressed significant reservations about the appointment process. National Security Adviser Jonathan Powell described the procedure as "unusual" and "weirdly rushed" in a September call record after Mandelson's sacking.
The memo indicates that Mr. Powell "raised concerns about the individual and reputation" directly to Sir Keir's then-chief of staff Morgan McSweeney. McSweeney reportedly responded that "the issues had been addressed." Philip Barton, the then-Foreign Office permanent under-secretary, also held reservations about the appointment according to the documents.
Communications Director Admitted Being Mandelson's 'Personal Friend'
Sir Keir's then-director of communications Matthew Doyle appears to have defended Mandelson's appointment before later acknowledging their personal relationship. A briefing note to the prime minister reveals that civil servants had arranged to personally brief Sir Keir about Mandelson's Epstein connections, but noted that Doyle was "satisfied" with the Labour grandee's "responses to questions about contact" with the paedophile.
After Mandelson's sacking, an investigation by the PM's general counsel noted that in a telephone interview, Lord Doyle described Mandelson as "a personal friend." Doyle, who was made a peer after resigning as communications director, has since been suspended from the Labour Party over separate propriety questions.
Mandelson Facilitated Meeting Between Blair and Epstein
The documents reveal that Bill Clinton and Peter Mandelson arranged a meeting between then-Prime Minister Tony Blair and Jeffrey Epstein in 2002. In an email to National Security Adviser Jonathan Powell, Lord Mandelson described Epstein as both "young and vibrant" and "safe," while noting Clinton wanted to introduce his "travelling friend" to Blair.
The email stated: "I think TB would be interested in meeting Jeffrey, who is also a friend of mine, because Jeffrey is a scientific catalyst/entrepreneur as well as someone who has his finger on the pulse of many worldwide markets and currencies."
Mr. Blair subsequently met with Epstein at 5pm on May 14, 2002. Following these revelations, the former prime minister reissued a statement clarifying this was his only contact with Epstein, occurring long before the financier's crimes were known. A spokesperson said: "As far as he can remember, Mr. Blair met with him for less than 30 minutes in Downing Street in May 2002, and discussed US and UK politics."
Mandelson Sacked After New Evidence Emerged
Sir Keir decided to dismiss Lord Mandelson after emails released by Bloomberg "revealed a depth and extent of a relationship with Epstein which he had not been aware of previously when he made the decision to appoint Mandelson" in 2024, according to a No. 10 private office record of a September 11 meeting.
The memo stated: "On this basis, he proposed to ask Mandelson to resign from his post as HMA Washington." Foreign Office permanent under-secretary Olly Robbins then "spoke by telephone to Mandelson towards the end of the meeting to inform him of the prime minister's decision and of the next steps," with the Palace being notified during the meeting.
The document release follows MPs ordering the government last month to release tens of thousands of documents relating to the 2024 appointment after questions emerged about the peer's vetting process. These initial files will likely increase pressure on Sir Keir Starmer, who faces mounting questions about his judgment in appointing the Labour grandee to such a sensitive diplomatic position.
