The Mandelson Files | Tortoise Investigates
The Mandelson Files | Tortoise Investigates

A Flying Start | The Mandelson files Ep1

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When Peter Mandelson was sacked as the UK’s ambassador to the United States over his links with Jeffrey Epstein people wondered how he ever got appointed in the first place.  Eventually Keir...

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Frank. - Nine. - Frank. Tortoise investigates. Do you remember when Clinton saw Tony Blair? He said he wanted to introduce his traveling friend.

It's May 7th, 2002. Peter Madison, one of the architects of new labor and MP for Hartlepool,

has recently resigned from the cabinet for the second time.

This is an email he's sending to the Prime Minister's Chief of Staff, Jonathan Powell. Like all the correspondence you'll hear, it's voiced by an actor. - He's young and vibrant. He's safe, whatever that means.

And Clinton is now doing a lot of traveling with him. Despite his public fall from grace, Peter Madison is still influential at the highest levels of government.

- I think Tony Blair would be interested in meeting Jeffrey,

who is also a friend of mine, because Jeffrey is an active scientific catalyst entrepreneur, as well as someone who has his finger on the pulse of many worldwide markets and currencies. - The Jeffrey he's referring to is Jeffrey Epstein.

- The billionaire financier who would turn out to be one of the most

notorious sex offenders in modern history. - I mentioned to Tony Blair that Jeffrey is in London next week, and he said he would like to meet him. Can you let me know? Thanks, Peter.

- A week later, Tony Blair's private secretary sends the Prime Minister a memo, outlining who he's meeting later that day. - He's a financial advisor to the Superrich and a property developer. He is a friend of Bill Clinton and Peter Mandelson.

The background of Epstein is this is very rich. - The PM's private secretary goes on to explain that Jeffrey Epstein made his money working for billionaire Leslie Waxner, who owns the lingerie farm Victoria's secret, and makes sure to mention Epstein's many homes.

- He has a $30 million home in New York,

plus a 10,000 acre ranch in New Mexico, and a villa in Palm Beach. Peter says Epstein now travels with Clinton and wants you to meet him. The two men did me on this one occasion for less than 30 minutes,

and it's reported they discussed US and UK politics.

And how do we know all this now, 24 years after the event?

The email and memo form part of a vast tranche of documents that the government released earlier this year, after yet another Peter Mandelson scandal forced its hand. - Lord Peter Mandelson has been set as the British ambassador to the United States.

- Impossible, as it turned out, the him to withstand the fresh revelations about the extent of his relationship with the notorious pedophile Jeffrey Epstein. - And Kirstana would become the latest Labour Prime Minister

to rule the day he gave Peter Mandelson a job. - Every decision I've taken has been about putting the country I love first. That is why I will resign as leader of the Labour Party. But there's a bigger story here, too.

If you take the time to read the 1500 pages of documents,

the government was forced to publish. You discover they aren't just about the political machinations of Peter Mandelson. At the time when the files came out, there was a sense of anti-climax,

at least for some in the media. There was no smoking gun or neat news line. But when you take a step back and let the brush strokes of that story settle into a bigger picture, they reveal a lot about how the UK is run,

how people will power in whitehall and Westminster, and how our politics works. I'm Ada Barume, and from Tortoise Investigates and the Observer, this is the Mandelson files. Episode 1, A Flying Start.

- It is coming up to five o'clock in the morning on this the fifth of July. We can now say, with certainty that Labour have won the 2024 General Election. - After 14 years in opposition,

the Labour Party is back in power. - Well, what a moment this is for Labour.

- Since 2010, the UK has had five prime ministers,

four General Elections, two national referendums,

and one global pandemic. The public finances are shaky.

The cost of living is on everyone's minds.

The NHS is on its knees and populist politicians are blaming migrants for many of the country's problems. The New Government has a lot to be getting on with. - And there is a here stammer who will become Britain's 58th Prime Minister. - We did it!

(cheering and applause) You campaign for it, you fought for it, you voted for it, and now it has arrived. Change begins now! (cheering and applause)

- I made the celebrations of familiar figure is keen to be part of Labour's moment of triumph. - An electoral meteor just hit Britain. We fight on, this is the next installment of travel. - It's Peter Mandelson.

- First, he texts Angela Smith,

Labour's leader in the House of Lords. - Many congratulations, so happy for you and us, ex-ex. - Then, Jackie Smith, who has just been appointed minister for higher education. - Jackie, I'm so happy for you, and for us,

that you have gone back into the government. It's tremendous. - And, Vernon Coker, the New Defense Minister. - Well done, Vernon, so happy. - But when it comes to the new Prime Minister,

he and Peter Mandelson are not particularly close. Back in March, when Kierstama was on the campaign trail, Peter Mandelson appeared on the Times Radio podcast how to win an election, and was less than complimentary about him. - Ties and appearance are not unimportant.

Kierstama needs to shed a few pounds, and that would be an improvement. - Nevertheless, following Labour's landslide, Peter Mandelson sends a message to the new PM. - Kier, hope you're well, you have got off to a flying start.

- And he has a suggestion. - I was at a dinner with John Major this evening,

and if you don't know him, I think good idea

to invite him for a chat. - John Major was the Conservative Prime Minister from 1990 to 1997. - As well as being a very nice person, he is interesting and thoughtful.

Just a thought, no need to reply. - Eight days later, Kierstama does reply. - Thanks, Peter. - It's so good to be getting on with the job of governing,

a million times better than opposition.

- I'll reach out to John M, he's a very thoughtful man, so you soon I hope. - All best, Kierst. - Next on Peter Mandelson's list is Ed Miliband, the new Secretary of State for Energy Security and Net Zero.

Someone else who could hardly be described as an ally of Peter Mandelson. - Hi Ed, the minister who I knew when I was trade commissioner has contacted me. He says you and he have met in the past.

- I should just say at this point that lots of sensitive or personal information from the Mandelson files has been redacted. For example, many junior civil servants are referred to as JCS.

We've edited accordingly and for clarity. - He would like to connect with you. He's exceptionally nice and able and very pro UK.

We'll be a good idea to connect, I think,

as they can help us a lot with the transition, investment, et cetera. - It doesn't look like Ed Miliband replies, and so two days later, Peter Mandelson double texts emphasizing his previous point.

- If action isn't taken, there will be no manufacturing jobs from the minister for the UK. Ed above is from a friend of mine who used to work in number 10, nice guy. - This time, Ed Miliband does reply, briefly.

- Very helpful, thanks. A month later, in August, Peter Mandelson picks up the exchange again, but his agenda has changed. No more pushy introductions. This time, Peter Mandelson has a more direct favour to ask.

- Have you registered? - Peter Mandelson sends Ed Miliband an online link to vote for the Chancellor of Oxford University, a position he's running for. 40 minutes later, Ed Miliband responds,

with what looks like an automated reply. - I'm away from this, babe. - If you have an urgent work matter, please email, and my office will pick up. - Undeterred, Peter Mandelson persists.

- Voting will open on Monday for the final round of the Oxford Chancellor election, so please monitor your inbox. - This time, the reply is swift, sent within a minute.

It's another automated looking reply, but with slightly different wording. - This number is no longer used regularly. - Peter Mandelson casts his net wider. - He messages Georgia Gold,

a newly elected MP and cabinet office minister

Whose father, Philip Gold,

was widely credited for writing the new Labour Playbook,

and who was a long-term ally of Peter Mandelson's.

- Are you still networked with your Labour chums from Oxford, Ex? - And this time, he gets a more enthusiastic reply. - I will make a map of all Oxford alumni, and you can tell me how to organize cabinet office.

He works his way around several other ministers with different asks. - Please spread the word amongst sympathetic Oxford, any Labour-leaning people as possible to read at least five graduates who know

who would back a progressive candidate begins today. Please spread the word to all your Labour network. - He frames the contest as a party political fight. He's up against William Hague,

the former leader of the Conservative Party.

- The Chancellor has almost always been

a conservative party politician. Now that voting is online, we have our first real shot for a Labour figure to win.

- According to the files, he doesn't get many replies,

but he has a good idea who's backing him. The links he sends to ministers, party members, and former colleagues, are sent using a link tracking service. That means he knows who is following through

with their pledge of support. And in public, Peter Mandelson is in full campaign mode. - I would like to thank you very much for inviting the Prince of Darkness. - Here he is speaking to students at the Oxford Union.

- If you're I am, of course, now the dark lord. I got so much from this university. If I can give something back to this university as it's Chancellor, that's the opportunity I would like. - Meanwhile, in Washington,

another campaign is reaching its dramatic conclusion. - And we do have some breaking news from the decision-desk NBC News can now project that Donald Trump has won the State of Wisconsin, which means he is the winner of this race

and will return to the White House as this country is 47th president. - Donald Trump is predictably humble in his victory speech. (audience cheering) - So truly be the golden age of America,

that's what we have to know. (audience cheering) - His reelection in November 2024 presents a problem for the Labour government. Unused to dealing with someone who is so erratic

in the White House. - On behalf of his Majesty's government at the United Kingdom, I would like to send my warmest congratulations to President Trump, the special relationship

between the United Kingdom and the United States, will continue to flourish for many years to come. - The thinking in number 10 goes that a more unconventional appointment as UK Ambassador to Washington might go down well with an unconventional White House.

Over the course of reporting this story, everyone I spoke to told me a version of the same thing about Peter Mandelson. He's an exceptional political tactician and a man who really understands how power works.

He was instrumental in the transformation of Tony Blair's Labour Party into an election winning machine in the 1990s. He served first as trade secretary and then as secretary of state for Northern Ireland.

But both stints in the cabinet under Tony Blair ended with his resignation as a result of closeness to wealthy, powerful individuals and perceived conflicts of interest. He's someone who was described to me

more than once as a man with more enemies than friends. Yet, his reputation as a unique political operator

always seemed to outweigh his checket history

in the eyes of Labour Prime Ministers. Tony Blair sent him to Brussels as EU Trade Commissioner in 2004. And Gordon Brown gave Missy in the House of Lords enabling him to return to frontline UK politics again.

But by early November 2024, Peter Mandelson has spent more than a decade in the private sector. Co-founding a lobbying firm with a roster of high-profile international clients. Even so, he still finds the time now and again

for a fair amount of politicking. Especially when there's a chance to be on the winning side. Tony Blair used to say to me and to others that he didn't think there was anybody who could beat Peter in terms of being able to see round corners,

to see the way the political weather was developing

and how you should think about responding to it.

This is Andrew Ronsley, the observer's chief political commentator. Obviously, once Chris Dahlmer becomes leader and then it becomes increasingly obvious that Labour's likely to win the next election, Peter Mandelson thinks, well, I want to be part of this project

and he starts making himself available. I mean, be willing, lead part to circuser time. So you could sometimes not get him off the phone offering advice, strategy tips, making himself useful. But of course, given his record

That it being closely involved in past Labour election victories

and the size of his network,

he finds a way in and becomes more and more influential again.

And it's during this time that Peter Mandelson meets Morgan McSweeney who's widely credited for helping the Labour Party deliver its general election victory that year. Peter Mandelson starts to become aware of whom Morgan McSweeney is during the awful period

when Jeremy Corbyn was in power in the Labour Party and Morgan McSweeney was in some ways covertly in some otherwise overly organising the opposition. And Morgan McSweeney would have just looked at Peter Mandelson as one of these titans of New Labour.

After the election, Morgan McSweeney ends up at the heart of number 10 as Kear Starman's Chief of Staff. And sometime in early November, after Donald Trump's reelection, Morgan McSweeney presents Kear Starmer with a short list of candidates for the Ambassador's Job in Washington.

None are career diplomats.

Former Conservative Chancellor George Osborne

is one of the names on the list. Peter Mandelson is another. And it's been reported that survivalist strongman and baptizer of Russell Brand in the River Thames.

Bear Grills is the third.

The Prime Minister faces the decision. On the 11th of November, Torsten Bell, a Treasury Minister, Messages Peter Mandelson. Very proud of what is to come. Hope this comes off.

We'll see. Replies Peter Mandelson. Still, if you've lost out on becoming Chancellor of Oxford, a position which ends up going to his rival William Hague, Ambassador to Washington is not a bad consolation prize.

What could be your choice? I have your mobile connection. Your whole body belongs to me. Just an old term. With mobile functions in real life, Frank.

A simple mobile function for 10-year-olds in month. Inclusive EU roaming. Also in Switzerland. No, Frank. No, Frank.

It's early December 2024. The Westminster Christmas party season is not yet in full swing. The propriety and ethics team, a specialized unit within the Cabinet Office, has a job to do. They've been charged with kicking off the vetting process

for the Prime Minister's pick for UK Ambassador to Washington. They create a due diligence report and deliver it to number 10 on the 11th of December.

Basically, it's a question of trawling through as much relevant material as possible.

That means searching through public records on Peter Malderson and examining internal documents from his previous stints in government.

But there's an important caveat right at the top of the report.

Checks should not be considered exhaustive. Nevertheless, it covers a lot of ground. The key bear is broken up into two sections. Professional and financial relationships and reputational risks. To the untrained eye, there are a few red flags.

The report notes Peter Malderson's position as the President of Global Council, the lobbying firm he founded, and that he'd probably have to give that up where he'd take on the role of Ambassador. And underneath, it also notes that Global Council is currently under investigation by the registrar of consultant lobbyists

for failing to disclose the cattari-free zones authority as a client. Below that, is the mention that Peter Malderson has recently resigned from a company called Bank of London, which is described in the report as, "a fintech startup facing regulatory and profitability concerns." All of that is before we get to the section on reputational risks,

which starts by reminding the reader that Peter Malderson is, twice resigned as a labour minister in the Blair Brown administrations. There are a few lines about his advocacy for a closer relationship with China. His flowery account of his October 2018 meeting with the Chinese President Xi Jinping, but the biggest chunk of the report is dominated by Jeffrey Epstein.

A 2019 report commissioned by J.P. Morgan found that Epstein appeared to maintain a particularly close relationship with Lord Peter Malderson, there are eight separate bullet points in this section.

One of which notes that, after Epstein was first convicted of procuring an underage girl in 2008,

their relationship continued across 2009 to 2011, beginning when Lord Malderson was

Business minister and continuing after the end of the labour government.

Malderson reportedly stayed in Epstein's house while he was in jail in June 2009.

Also attached to that report was the memo you heard at the start of the episode,

in which Peter Malderson urges Tony Blair to meet Jeffrey Epstein, a meeting that we know did happen. The cabinet office holds official records which relate to a Tony Blair meeting with Epstein that was facilitated by Malderson. The report concludes general reputational risk general reputational risk with the benefit of hindsight that's putting it mildly. Only a week after that report is sent to the Prime Minister

far enough as officials write to the King's private secretary, enclosing Peter Malderson's CV. Political appointees are rare in the British system,

but in keeping with those appointed from within the diplomatic or civil service,

his Majesty's approval is required. May I request that you seek the King's approval for Lord Peter Malderson as his Majesty's ambassador to Washington? As they wait for the King's approval, civil servants from the cabinet office start discussing what they call the vetting issue. What they want to know is whether or not Peter Malderson needs security clearance for his new potential ambassador role in which he'll be very involved in security meetings between the UK and

US. It is likely the individual in question is in the House of Lords. This is from a junior civil servant to the government chief security officer at the cabinet office. So we may not need to process, we'll get details today and of course we stand ready to prioritize. You get the sense when reading these messages that the civil service is in unknown territory when it comes to the political appointment of a member of the House of Lords as opposed to a career diplomat. What I'm not sure about is

whether the role is a public appointment. I don't think it is really. A public appointment is for example like the Children's Commissioner. Everyone seems to be feeling a bit reluctant in that very

end of the year winding down kind of way. Can you chase the team on the vetting strapped letter?

Sorry, that one was from yesterday that I didn't hit send on. A few things about these emails before we go on. There's a lot of acronyms in abbreviations, which we're spelling out. For example, FCDO stands for Foreign Commonwealth and Development Office and NSV stands for National Security vetting. Strap though, which sounds like an acronym is in fact a code word. It's the term used to refer to a different type of security clearance which is tailored to a specific position.

In practice though, that's the kind of technical distinction that falls by the wayside in the midst of the horrid exchanges between civil servants in the run up to the Christmas break in 2024. You asked earlier today whether an individual from the House of Lords needs to go through

vetting, and I must confess to never knowing how strapped works at the best of times,

never mind in this scenario. After a few more back and forth, they managed to reach a consensus. No vetting needed, but we reserve the right to clear for strapped. Perfect. All in the same position on this. The decision is confirmed to the Foreign Office and their head of security replies. Thanks, this is very helpful confirmation of what we, the Foreign Office, understood the position to be. If the nominees are a member of the House of Lords,

then it does make the process less bumpy. But no sooner than they figured that out, then embassy staff in Washington are told. And the following day, December 20th, the appointment of Peter Madison is made public. Lord Mandelson to be the U.S. Ambassador is this a good move.

I think it's pretty inspired choice actually.

Congratulations start rolling in. There's one from the Health Secretary where's treating. Parliamentary Labour Party WhatsApp's stratospheric increase. Another from Ed Milaband, whose phone number is curiously back in use again. Peter, many congratulations. Look forward to working together. And another senior Labour figure, Angela Eagle. Congrats Peter. I can't think of anyone better qualified for the job at this time.

It's widely seen that for a Prime Minister with little raw political instinct, this is a smart appointment. Maybe even a stroke of genius. It's the day before the day before Christmas. And work at the foreign office is winding down. It's only three days after the announcement about the new ambassador to the U.S. has been made public. When an email drops into their inboxes. It's from an unnamed junior civil servant.

Dear all, please note I have set Lord Mandelson up for developed vetting their boss response.

Presume he automatically receives developed vetting as a Lord.

office had advised against vetting Peter Mandelson for the ambassador role. A top foreign

office official has suggested that they get the ball rolling anyway. Peter Mandelson will need it to get into the building and start his prep. That prompted one diligent junior civil servant to

take a closer look at the actual guidance. The new guidance is attached. He is a Lord but I think

he comes under public appointments as he's not an advisory role. Happy to be overruled.

They're boss replies. I definitely wouldn't overrul you. You're the expert.

The foreign office relays the information to the cabinet office. The email subject line reads. Urgent vetting question. And it's shortly after lunch on December 23rd when the cabinet office reverses its initial stance. Cabinet office had reflected over the weekend and judged that the

exemption's policy had not envisaged the unusual situation of MPs or Lords being appointed to

ambassadorial positions. We will proceed with the clearance process. Peter Mandelson already

publicly appointed to his new role will need to undergo the full vetting procedure after all. Coming up on the Mandelson files. You've anybody can snake charm Donald Trump. It's going to be Peter Mandelson. Peter Mandelson is a man of considerable expertise. He's the right man for this moment to be our ambassador. It's just like something out of the thick of it. It was found among

Epstein's belongings in a so-called birthday book containing notes from his friends.

UK ambassador told Epstein, "I think the world of you emails reveal."

Jeffrey, can you give? Jeffrey, can you organize? Can you call? Can you arrange? You have yet to offer real assistance. Did you deserve to be sent? I understand why I was sent. It's a different question. In the last hour, Peter Mandelson has been arrested on suspicion of misconduct in public office. Thank you for listening to Episode 1 of the Mandelson files. We hope you're enjoying the series so far.

To listen to Episode 2, 3 and 4, subscribe to the Observer at Observer.co.uk/subscribe forward/audio for 50% off or hit subscribe wherever you get your podcasts to listen to all episodes now. This series is reported by me, Aida Brume. It's written by me and the producer Amalia Saltland. Sound design is by Dominic Delagey, series artwork by Lucy Stevenson. The Executive Producer is Jasper Corbyn.

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