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Lord Peter Mandelson’s financial settlement following his dismissal as the UK ambassador to the United States is currently under scrutiny, according to sources within the Foreign Office. The review was prompted by new revelations regarding Mandelson’s interactions with the late convicted sex offender Jeffrey Epstein, alongside an ongoing police investigation in the UK.
Reports suggest that Mandelson received a payoff estimated to be up to £40,000 after being removed from his diplomatic post in September. This figure corresponds roughly to three months’ salary, given that the ambassadorial role typically commands an annual pay of between £155,000 and £159,999. The settlement’s precise amount and rationale are expected to be disclosed soon, as Parliament has mandated the release of documents and relevant communications tied to Mandelson’s period before and during his appointment in Washington.
Government officials have emphasized that Mandelson’s termination complied fully with legal advice and standard civil service human resources procedures. A Foreign Office spokesperson stated that further details will be made available as part of a governmental response to Parliament’s recent motion, coordinated by the Cabinet Office. Both Downing Street and Work and Pensions Secretary Pat McFadden have expressed that Mandelson should refund the money or donate it to charities supporting victims, reflecting the sensitivity surrounding this issue.
The investigation follows the latest exposure of emails between Mandelson and Epstein, including correspondence related to significant fiscal policy matters. These emails date back to Mandelson’s tenure in Gordon Brown’s cabinet, and among them is one suggesting Mandelson informed Epstein in advance about a €500 billion EU bailout plan in 2010. The Metropolitan Police are examining allegations of misconduct in public office against Mandelson; although he has not been arrested, searches took place at two properties connected to him. Deputy Assistant Commissioner Hayley Sewart described the investigation as complex and ongoing, noting that it will require extensive evidence gathering and analysis before any conclusions can be drawn
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