Britain's ambassador to the US brokered a £1billion deal with Jeffrey Epstein, despite knowing the disgraced financier had been convicted of child sex offences, according to emails revealed in a US court.
Labour grandee Lord Mandelson negotiated the sale of a UK taxpayer-owned banking business with Epstein, just weeks after he had been released from prison.
Lord Mandelson was serving as Business Minister under Gordon Brown at the time of the deal, which saw Sempra Commodities, a joint venture between Sempra Energy and the Royal Bank of Scotland, sold to JP Morgan in 2010.
Emails from a US court case, brought to light by The Telegraph, showed that Epstein had given advice to the Labour peer in regards to the deal, alongside a senior JP Morgan executive.
Lord Mandelson was serving as Business Minister under Gordon Brown at the time of the deal
| GETTYThe diplomat was believed to have had a close friendship with the financier spanning two decades, even after Epstein's conviction in 2008.
Lord Mandelson has previously expressed regret over the relationship, saying: "I wish I’d never met him".
The British ambassador previously told a Financial Times reporter to "f*** off" when questioned about his relationship with Epstein.
The US House Oversight Committee published a 238-page album of birthday messages to Epstein when he turned 50 in 2003, where a handwritten note from the future ambassador describing him as his "best pal" was revealed.
The British diplomat was believed to have had a close friendship with the financier spanning two decades
| PAIn addition to the personal message, various photos were attached of the pair on Epstein's private island in the Caribbean.
One photo showed Lord Mandelson wearing a white bathrobe as he sat laughing with the financier.
The birthday message from Lord Mandelson went on to say: "Once upon a time, an intelligent, sharp-witted man they call 'mysterious' parachuted into my life."
Another page displayed a picture of the island, with the British ambassador writing: "In one of his glorious homes he likes to share with his friends (yum yum)."
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Epstein's former housekeeper for his island residence told The Telegraph that Lord Mandelson had stayed there for around a week in 2002
|REUTERS
Epstein's former housekeeper for his island residence told The Telegraph that Lord Mandelson had stayed there for around a week in 2002.
A British victim of Epstein's abuse, Sarah Ransome, also told the newspaper: “Something is really, really wrong here. Peter Mandelson should not be ambassador. He needs to be fired. He is unsuitable to be ambassador.
“Keir Starmer must have known all this. Everybody knew about Peter Mandelson’s close friendship with Epstein."
The revelations surrounding the ambassador have sparked fury in Westminster, with several MPs across the political spectrum calling on the Government to take action.
Tory MP Sir Gavin Williamson wrote to Sir Keir on Tuesday to question whether he had carried out proper due diligence before appointing Lord Mandelson to one of the highest diplomatic roles in the Foreign Office.
Sir Gavin said: “Do you believe Lord Mandelson’s conduct and association with a convicted paedophile to be in line with the requirements of the Diplomatic Service Code?”
One Labour MP told The Telegraph: “He ought to resign. He knows how to stand down, after all. This would be the third time at least.”
Downing Street said the PM had no plans to speak to Lord Mandelson about the birthday message, adding that “the ambassador’s played a key part in all of the achievements... when it comes to strengthening the trade relationship with the US, the UK-US defence deal, and work to end Putin’s war.”
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