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Peter Mandelson is facing an inquiry by the EU’s anti-fraud agency after the European Commission requested the body look into his activities during his time as trade commissioner in Brussels.
The commission said it referred the peer, 72, to the European Anti-Fraud Office (Olaf) last week after the US Department of Justice released documents allegedly showing he shared sensitive government information with sex offender Jeffrey Epstein.
Mandelson served as EU trade commissioner between 2004 and 2008 before he returned to the UK government as business secretary. The files suggested that among information he shared with Epstein was details of a €500bn bailout to save the euro in 2010.
Mandelson, who has denied any wrongdoing, was arrested on Monday over allegations of misconduct in public office during his friendship with Epstein. He was released on bail hours later but he is understood to have surrendered his passport after claims – described by his lawyers as “baseless” – that he was planning to flee the country.
The Epstein scandal continued to rock the British establishment on Thursday as John Healey, the defence secretary, ordered a review of more than two decades of military records for any evidence of Epstein, or his team, booking RAF airfields.
A Ministry of Defence spokesperson said: “The defence secretary has ordered a review of all records that the department may hold relating to Epstein flights landing at RAF bases to ensure that any information which relates to Epstein’s crimes is uncovered and provided to the relevant authorities.”
Gordon Brown, the former prime minister, warned last week that the British state may have facilitated the disgraced financier’s crimes by allowing him to land his private jet at its bases, sometimes with unknown women aboard.
He is understood to be particularly concerned about a private flight Epstein took on a Gulfstream jet that landed at a Norfolk airbase in December 2000, before a visit to Sandringham with Andrew Mountbatten-Windsor.
The former prince was arrested last week on suspicion of misconduct in a public office, after emails appeared to show he passed confidential information to Epstein while he was UK trade envoy. He has denied any wrongdoing.
A European Commission spokesperson said on Thursday: “Whenever there is any indication of a possible breach of the obligations under the (code of conduct), the commission assesses these possible breaches and takes action on that basis, if necessary.
“On this basis, and as new documents were published recently, we are looking into these and assessing whether there is any breach of the respective obligations.
“Given the circumstances, and the significant amount of documents made available publicly, the European Commission also asked Olaf on 18 February to look into the matter.”
A spokesperson for Olaf confirmed the agency had been asked to look into Mandelson’s actions, but could not say whether an investigation would take place.
According to the Financial Times, the European investigation is expected to be wide-ranging rather than focused on any particular issue. Mandelson’s lawyers did not immediately respond to a request for comment.
Earlier on Thursday, the Metropolitan police apologised to a second parliamentary speaker in two days after he was erroneously named as the person who passed on information about Mandelson which led to his arrest.
Michael Forsyth, the lord speaker, was named in reports as having warned the police that the former peer was going to abscond to the British Virgin Islands.
After Forsyth was named, Sir Lindsay Hoyle, the House of Commons speaker, told MPs on Wednesday it was him who had informed police while he was on holiday in the British Virgin Islands last week.
The Met apologised to Hoyle on Wednesday, saying it had “inadvertently” revealed information about why Mandelson had been taken into custody.
A spokesperson for the force said on Thursday: “The Met has also apologised to the speaker of the House of Lords, following the inadvertent revealing of information into allegations of misconduct in public office.”
Mandelson’s lawyers described the claim that the former peer was a flight risk as “baseless”. He was released on bail and denies any wrongdoing.
Meanwhile, the intelligence and security committee confirmed on Thursday that Keir Starmer will not have a veto over the release of documents relating to Mandelson’s appointment as UK ambassador even if they are damaging to the government.
Mandelson was sacked as British ambassador to the US in September after it emerged he remained in close contact with Epstein after his conviction for sex offences.
MPs voted earlier this month for the body to oversee the publication of the papers. The Guardian understands the first tranche is expected to be released the week after next.
After talks with Cabinet Office officials on Thursday, the ISC said the government had now agreed a framework with Scotland Yard on the publication of the files so that they do not prejudice any ongoing police investigation.
The committee chair, Lord Beamish, said the ISC would have the final say over which documents were released in order not to jeopardise the UK’s national security or diplomatic relations. He has previously said the body would not hold back papers to avoid causing the government any embarrassment.
Beamish said: “Following this morning’s meeting, officials have now confirmed in writing to the committee that the decision as to whether material referred to the ISC is published is for the committee alone.
“The prime minister, or anyone else in government, will not be able to overrule the committee’s decision to publish material that has been referred to it.”
The ISC said it had requested that those papers relating to the vetting and appointment of Mandelson be prioritised for release. Material from across government is being reviewed by the Cabinet Office.
A government spokesperson said: “We are proceeding at pace to publish the first tranche of documents in early March. We are working closely with the ISC and have made progress on a number of their requests.
“The government is very grateful to the committee for their work and commits to full engagement with them to ensure these processes are timely and effective.”
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