The Duke of York paid the price for his association with a convicted
paedophile as the Government decided to downgrade his role as Britain’s
trade ambassador.
9:59PM GMT 06 Mar 2011
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The Daily Telegraph has learnt that ministers are to carry out a review of his
position and that his responsibilities will be reduced.
Whitehall sources have conceded that the Duke could still be forced out
altogether if there are further damaging disclosures about his personal
affairs.
Pressure on the Duke increased when it was established that Jeffrey Epstein,
who recently served 18 months in jail for child sex offences, paid
off debts owed by Sarah, the Duchess of York, after an alleged intervention
from her former husband.
Epstein, who played host to the Duke at his Florida home, a mansion where
under age girls were sexually abused, gave £15,000 to the Duchess’s former
personal assistant after the Duke allegedly approached him for help last
December.
There is no suggestion the Duke had any sexual contact during his visit to
Epstein’s mansion.
Government sources said the Prime Minister “won’t shed many tears” if the Duke
quits as Britain’s special representative for trade and investment, and five
ministers in the departments overseeing the Duke’s role refused to give him
their backing.
A Cabinet minister told The Daily Telegraph that the Duke’s responsibilities
would be the subject of a “tasking review” that would lead to a reduction in
his responsibilities.
The minister said that there would be no official announcement of the review,
as the Government was wary of publicly putting pressure on the Duke to quit,
for fear of antagonising the Queen and the Royal family.
Privately, however, government insiders increasingly believe that the Duke’s
position is becoming untenable. One senior Conservative figure who has
dealings with the Duke described him as a lonely and misguided figure with
poor judgment.
“There appears to be no discernible mental activity,” the senior Tory said. “I
feel sorry for him. He has no friends and so is surrounded by these vile
people.”
Another government source said: “We won’t be giving a full-throated defence of
him. There won’t be many tears shed if he resigns.”
The Duke’s role is overseen by UK Trade and Investment, a government body
under the charge of the Department for Business, Innovation and Skills, with
input from the Foreign Office.
Vince Cable, the Business Secretary, failed to give the Duke his backing when
he was asked if he should continue in the role, and four other ministers in
the two departments also refused to voice support for the Duke yesterday.
Mark Prisk, the business and enterprise minister, would say only “no comment”
when asked if he still backed the Duke, while John Hayes, his departmental
colleague, said it was “not appropriate” for him to comment.
The Foreign Office ministers Jeremy Browne and Lord Howell of Guildford also
replied “no comment” when asked if the Duke had their support. William
Hague, the Foreign Secretary, said the Duke still had his confidence, saying
that he had done “a lot of good” for the country in his roving trade role.
But sources later said that Mr Hague had not been properly briefed on the
situation when he spoke.
On Saturday the extent of the concern felt by Buckingham Palace became clear
when an aide mistakenly sent an internal palace email to The Daily Telegraph
which read: “Will UKTI stand behind him? We need some government backing
here.”
David Cameron faced calls in Parliament last week to relieve the Duke of his
role as trade ambassador following questions about his “close” friendship
with Saif Gaddafi, the son of the Libyan leader, and with Tarek Kaituni, a
convicted Libyan arms dealer.
But it is the Duke’s links to Epstein, who is alleged to have abused up to 40
young girls, that now pose the greatest threat to his position.
The Duke, who has counted Epstein as a friend for 16 years, was a guest of
Epstein at his Florida mansion and was pictured with his arm around a
17-year-old “masseuse” who later claimed to have been one of Epstein’s
victims.
Last month a photograph was published of the Duke strolling through Central
Park in New York in conversation with Epstein, during a private visit which
he has since described as a “mistake”.
The photograph was taken in December, and it is now alleged that the Duke took
the opportunity to discuss his ex-wife’s £5 million debts with Epstein.
A source close to the negotiations with the Duchess’s creditors has told The
Daily Telegraph that the Duke was “sorting the offer” of financial help from
Epstein at the time, a claim that has not been denied by Buckingham Palace.
Last night the Duchess’s spokesman admitted that Epstein had paid £15,000 to
Johnny O’Sullivan, her former personal assistant, as part of the £78,000 she
owed him in wages and expenses.
The Duchess’s spokesman described the payment as an “independent arrangement”
between the two men and said the Duchess intended to repay the money.
Asked if the money had been paid as a result of the Duke’s meeting with
Epstein in December, the Duchess’s spokesman said: “I don’t know.”
It has also been disclosed that Gordon Brown resisted demands to sack the Duke
from his role as trade ambassador during his time as prime minister.
Chris Bryant, the former Foreign Office minister who was responsible for
Kazakhstan, where the Duke has forged friendships with controversial
businessmen, urged Mr Brown to force out the Duke. Mr Bryant said: “I tried
to raise my concerns with No10 but a Labour administration tackling the
Royals would have led to charges of republicanism. Perhaps it might be
easier for the Coalition to take a stand.”
The FBI is said to be considering reopening its case against Epstein, who was
jailed after admitting soliciting an under age girl for prostitution in
2008.
Sources in America said investigators could seek to interview the Duke, who is
reported to have been given daily massages paid for by Epstein.
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