'Peer in his pants': Lord Mandelson resigns from Labour to 'avoid further embarrassment' over Epstein links
The peer, who was sacked as US ambassador last year because of his links to Epstein, featured in documents released by the US Department of Justice on Friday related to the paedophile financier
Lord Mandelson said he has resigned from his membership of the Labour Party as he does not wish to “cause further embarrassment” over his links to Jeffrey Epstein.
Listen to this article
The peer, who was sacked as US ambassador last year because of his links to Epstein, featured in documents released by the US Department of Justice on Friday related to the paedophile financier.
In one bank statement, a payment of 25,000 US dollars to the account of Reinaldo Avila da Silva, now Lord Mandelson’s husband, features on May 14, 2003.
The statement appears to describe “Peter Mandelson” as the beneficiary of the payment, as the allocation “BEN” appears next to his name.
Two later statements from May and June 2004 also feature 25,000 dollar payments to Lord Mandelson, one to an account which appears in his name, and another in which he appears to be listed as a beneficiary.
Read more: Sir Richard Branson said ‘bring your harem’ in email reply to Jeffrey Epstein
At the time, he was serving as Labour MP for Hartlepool.
In a statement given to the Press Association, he said he had written this evening to the general secretary of the Labour Party, Hollie Ridley.
His letter said: “I have been further linked this weekend to the understandable furore surrounding Jeffrey Epstein and I feel regretful and sorry about this.
“Allegations which I believe to be false that he made financial payments to me 20 years ago, and of which I have no record or recollection, need investigating by me.
“While doing this, I do not wish to cause further embarrassment to the Labour Party and I am therefore stepping down from membership of the party.
“I want to take this opportunity to repeat my apology to the women and girls whose voices should have been heard long before now.
“I have dedicated my life to the values and success of the Labour Party and in taking my decision, I believe I am acting in its best interests.”
Lord Mandelson said he had no recollection of receiving the payments, and did not know if the documents were genuine.
Other disclosures from the latest Epstein files show a man who appears to be Lord Mandelson in a series of undated photographs, stood in his pants and a T-shirt alongside a woman whose face has been hidden.
The peer said he “cannot place the location or the woman and I cannot think what the circumstances were”.
Elsewhere, the files appeared to show Mr da Silva was transferred thousands of pounds by Epstein to pay for a fee so he could attend the British School of Osteopathy.
Lord Mandelson appears to have told Jeffrey Epstein he was “trying hard” to change policy on bankers’ bonuses not long after Gordon Brown’s government clamped down on them in the wake of the financial crisis.
Emails released by the US Department of Justice appear to show a discussion in 2009 between disgraced paedophile financier Epstein and Lord Mandelson, as they discuss a tax on bankers’ bonuses.
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.”
The emails suggest the peer, then business secretary, was prepared to lobby the Government over the so-called “super tax” introduced in early December 2009, by then-chancellor Alistair Darling, to clamp down on bank profits being used to pay large bonuses for bankers in the wake of the financial crisis.
Lord Mandelson said: “Every UK and international bank was making the same argument about the impact on UK financial services.
“My conversations in government at the time reflected the views of the sector as a whole not a single individual.”
Lord Mandelson has previously offered an unequivocal apology to Epstein’s victims.
He has also insisted he had “nothing more to add” on his links to Epstein.
Being pictured or mentioned in the Epstein files is not an indicator of any wrongdoing.
Speaking to LBC News' Vanessa Baffoe, former shadow chancellor Mel Stride called for an independent inquiry into Mandelson's connections with Epstein.
"Keir Starmer should have shown more backbone here," he said.
"He should have dealt with this a long time back. In fact, he should never have appointed him as US Ambassador in the first place. And so, no, he has acted without a backbone. He's ended up in a position where it's been Lord Mandelson that's stepped aside. But we need to go further than simply the point that Steve Reed made about testifying to US Congress, et cetera, which I certainly support.
"But we need now an independent investigation, a proper independent investigation into exactly what has happened in and around Lord Mandelson's behaviour."
A spokesperson for the Labour Party said: “The Labour Party takes all complaints seriously and they are investigated in line with our rules and procedures.”
A Conservative Party spokesman said: “Lord Mandelson is completely disgraced. Yet Keir Starmer lacked the backbone to take action, allowing Mandelson to resign from the Labour Party instead of kicking him out.
“Keir Starmer and his chief of staff appointed Mandelson ambassador despite his relationship with Epstein, and then refused to act even as the mountain of evidence against him grew.
“Given the Prime Minister’s appalling lack of judgment and the participation of his Downing Street operation, there must now be a full and thorough independent investigation.”