LONDON

The first set of government files related to the appointment of Peter Mandelson as the UK’s ambassador to the US were released Wednesday, revealing that Prime Minister Keir Starmer was warned of a potential “reputational risk” linked to the envoy’s association with the late convicted pedophile Jeffrey Epstein.

A due diligence report prepared in December 2024 before Mandelson’s appointment to Washington noted concerns about a “general reputational risk” related to his relationship with Epstein, the convicted pedophile.

Documents show that Starmer was informed that Mandelson maintained contact with Epstein after Epstein’s 2008 conviction for procuring an underage girl.

“After Epstein was first convicted of procuring an underage girl in 2008, their relationship continued across 2009-2011, beginning when Mandelson was business minister and continuing after the end of the Labour government,” according to the report.

“Mandelson reportedly stayed in Epstein's House while he was in jail in June 2009,” it said.

The due diligence document, given to Starmer in November 2024, included references to a series of reports detailing Mandelson’s links with Epstein and flagged the potential reputational implications.

Separate documents released by the government also detail discussions about Mandelson’s departure from a previous role last September.

The files show that Mandelson asked for more than half a million pounds as a severance payment when he was dismissed.

The papers said Mandelson requested that the government “pay out the remainder of the 4-year salary costs of the fixed term appointment.”

He ultimately received £75,000.

Notes of a call between Mike Ostheimer, the prime minister’s general counsel, and Starmer’s national security adviser Jonathan Powell also appear in the documents.

In the record of the conversation, Powell is described as saying he found the appointment process “unusual.”

The notes state that Powell “found the appointment process unusual of Mandelson weirdly rushed.”

Mandelson, the former British cabinet secretary, has had his bail conditions lifted following his arrest on suspicion of misconduct in public office, though he remains under investigation by the Metropolitan Police.

Mandelson, 72, was arrested Feb.23 following allegations that while serving as a government minister, he passed on market-sensitive information to Epstein.

Mandelson, long dubbed a political "spin doctor" and the "Prince of Darkness" for his strategic prowess and backroom influence, saw his decades-long career end with recent resignations from the Labour Party and the House of Lords.

He became British ambassador to the US last February but was dismissed in September after Downing Street said new information about the depth of his relationship with Epstein had emerged.

The government had said it expects to release the first documents relating to his appointment as envoy to the US in early March.