BORIS Johnson has been referred to the parliamentary standards watchdog over claims a former advisor helped him get an £800,000 loan - before being made BBC chairman.
The referral has been made by the Labour Party over what it called a “quagmire of sleaze" - however the ex-Prime Minister has strongly refuted the claims.
Richard Sharp, 66, helped Mr Johnson by arranging to guarantee an £800,000 loan, according to - a claim described as "rubbish" by the ex-PM's spokesman.
That was weeks before Mr Johnson selected Mr Sharp as BBC chairman, according to the paper.
Anneliese Dodds, Labour Party chair, has written to MPs' standards tsar Daniel Greenberg about the reported arrangement.
Mr Sharp - who was an advisor to Boris while he was Mayor of London - reportedly got involved in the alleged loan agreement following a dinner at the home of Sam Blyth in West London.
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Mr Blyth is a multimillionaire Canadian businessman and distant cousin of Mr Johnson.
Mr Johnson, Mr Sharp and Mr Blyth then later reportedly had a private dinner at Chequers before the loan was finalised.
However, all three insist that Mr Johnson’s finances were not discussed.
Under the BBC’s royal charter, the monarch appoints the chair on the recommendation of the prime minister and culture secretary.
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They receive advice from a panel of four people, who must run a “fair and open” contest.
Mr Sharp has acknowledged that he connected with Mr Blyth but says he did not provide financial advice and has insisted there was “no conflict [of interest]”.
A spokesman for Mr Johnson said he had declared his interest properly.
The spokesman for Mr Johnson added: “This is rubbish. Richard Sharp has never given any financial advice to Boris Johnson, nor has Mr Johnson sought any financial advice from him. There has never been any remuneration or compensation to Mr Sharp from Boris Johnson for this or any other service.
“Mr Johnson did indeed have dinner with Mr Sharp, whom he has known for almost 20 years, and with his cousin. So what? Big deal. All Mr Johnson’s financial arrangements have been properly declared and registered on the advice of officials.”
Mr Sharp said: “There is not a conflict when I simply connected, at his request, Mr Blyth with the cabinet secretary and had no further involvement whatsoever.”
A BBC spokesman said: “The BBC plays no role in the recruitment of the chair and any questions are a matter for the government.”