Despite the warning, Starmer approved Mandelson’s appointment. The veteran Labour Party politician held the diplomatic post for nine months before being dismissed when new details about his relationship with Epstein emerged.
The documents, released Wednesday, reveal that senior civil servants flagged concerns before the appointment was finalized.
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Longstanding relationship highlighted
A due diligence report prepared in December 2024 outlined a relationship between Mandelson and Epstein that spanned nearly two decades.
According to the report, Mandelson helped arrange a meeting between Epstein and then–prime minister Tony Blair in 2002.
The document also noted that Mandelson reportedly stayed at Epstein’s residence in 2009 while the financier was serving a jail sentence for sexual offenses involving a minor.
The report cited a 2019 internal review commissioned by JPMorgan which described Epstein as having a particularly close relationship with both Mandelson and Prince Andrew.
Officials also flagged earlier controversies from Mandelson’s time in government, including two resignations over financial matters and his role at the lobbying firm Global Counsel.
Government says Mandelson misled officials
Despite the warnings, the appointment went ahead.
Cabinet minister Darren Jones later told lawmakers that the due diligence process failed to reveal the full extent of Mandelson’s ties to Epstein.
He said Mandelson had misled Starmer about the nature of the relationship.
“Peter Mandelson should never have been afforded the privilege of representing this country,” Jones told members of the House of Commons.
“The prime minister deeply regrets taking him at his word. It was a mistake.”
Political fallout grows
Starmer dismissed Mandelson in September after earlier documents revealed the former minister maintained contact with Epstein following his 2008 conviction.
Further revelations emerged after a large collection of Epstein-related files was published by the U.S. Department of Justice earlier this year, intensifying scrutiny of Starmer’s decision.
Opposition politicians have since accused the prime minister of a serious lapse in judgment.
Ed Davey, leader of the Liberal Democrats, called the appointment a “catastrophic failure of judgment.”
Meanwhile, Conservative lawmaker Alex Burghart said the prime minister should have recognized the risks from the information already presented in the due diligence report.
Criminal investigation underway
Mandelson is also facing a police investigation into allegations that he shared sensitive government information with Epstein when he served as business secretary following the 2008 financial crisis.
He was arrested at his home in London on February 23 on suspicion of misconduct in public office.
Police later released him without bail conditions while the investigation continues.
Mandelson has denied wrongdoing and has not been charged. Authorities say he does not face allegations of sexual misconduct.
He has since resigned from the House of Lords and lost his ambassadorial salary of about £157,000 a year.
Documents show he initially requested compensation totaling £547,000 after his dismissal, representing the remainder of his four-year contract.
The government ultimately agreed to pay him £75,000.
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Adapted by ASEAN Now · Source · 11.03 2026
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