'I EXPECT TO RETAIN MAXIMUM DIGNITY'

Ex-ambassador in demand for £500k after he was sacked; Diligence report warned PM of risks of appointing him

- LIZZY BUCHAN ASHLEY COWBURN

EVEN as he was being sacked as US ambassador over his links to paedophile Jeffrey Epstein, Peter Mandelson still felt entitled to "maximum dignity"... as well as more than £500,000.

The first batch of newly released files about the former minister's appointment to the role reveal his golden handshake was downgraded to £75,000 of taxpayers' money.

But they also say officials at the Foreign Office feared Mandelson might "go public" with damaging claims against the government if he were not offered a swift settlement.

The 147-page dossier released yesterday raises fresh questions over Prime Minister Keir Starmer's judgement in sending Mandelson to Washington despite his friendship with Epstein.

Mr Starmer sacked him in September after 10 months in the role, saying he had lied about the extent of his ties with the predator. But a Cabinet Office due diligence report prepared before his appointment had warned there was a "general reputational risk" in appointing him.

It explicitly mentioned reports the pair continued their friendship after Epstein was convicted of child abuse offences, and that Mandelson stayed at Epstein's Manhattan home while the financier was in jail in 2009.

It also included reference to a JP Morgan report from 2019 that stated Mandelson and Epstein were "particularly close".

Top officials raised concerns about the appointment, including National Security Adviser Jonathan Powell, who described it as "unusual" and "weirdly rushed" in a September 12 call.

He also "raised concerns about the individual and reputation" to Morgan McSweeney, the PM's then-chief of staff.