Sir Keir Starmer’s government is battling accusations of a deliberate cover-up after revelations that a mobile phone containing key messages between the Prime Minister’s former chief of staff and the disgraced Peter Mandelson was stolen and its data lost, potentially obscuring crucial details about Mandelson’s controversial appointment.
The phone belonged to Morgan McSweeney, who resigned as Sir Keir’s chief of staff earlier this year amid the furore over Mandelson’s short-lived role as US Ambassador. Housing Secretary Steve Reed confirmed the device was stolen last year and that the theft was reported to police “months before the scandal involving the one-time Labour grandee erupted.” However, the precise timing remains unclear, fuelling Conservative claims of obstruction.
Shadow minister Alex Burghart led the attack, stating: “We had to drag the Mandelson files out of Keir Starmer and now we find the phone of his former chief of staff and protege of Mandelson won’t be part of the disclosure. The whole thing stinks of a cover-up.” The allegation is that the missing device, which may have held a direct message history between McSweeney and Mandelson, creates an irreplaceable gap in the record Number 10 is compelled to release, leading to speculation the phone may have been deliberately disposed of.
The Arrest and the Alleged Crimes
The significance of any lost communications is underscored by the serious police investigation into Lord Mandelson himself. He was arrested on 23 February 2026 on suspicion of misconduct in public office. The allegations centre on claims he passed sensitive government information to the convicted paedophile financier Jeffrey Epstein during his earlier tenure as Business Secretary under Gordon Brown.
Mandelson was released on bail and has since been released under investigation, with his passport returned. His lawyers state he maintains his innocence, was not motivated by financial gain, and will cooperate with police. He has claimed he sought Epstein’s expertise in the national interest. However, documents suggest Mandelson referred to Epstein as his “best pal” and shared highly sensitive material, including details of an impending €500 billion eurozone bailout.
Further context comes from bank statements appearing to show Epstein made payments totalling $75,000 to Mandelson or his husband, Reinaldo Avila da Silva, and paid for an osteopathy course for Mandelson’s husband.
Warnings Ignored and a “Weirdly Rushed” Process
The research briefing reveals the Prime Minister proceeded with the ambassadorial appointment despite explicit warnings. A Cabinet Office due diligence report from December 2024 warned Sir Keir of the serious “reputational risk” posed by Mandelson’s links to Epstein. Furthermore, Sir Keir’s then national security adviser, Jonathan Powell, described the appointment process as “weirdly rushed” and raised concerns with McSweeney, who reportedly stated they had been addressed.
McSweeney is reported to have pushed for Mandelson to get the role. Mandelson was appointed in December 2024, began the post in February 2025, and was sacked in September 2025 after emails emerged showing his continued friendship with Epstein long after Epstein’s 2008 conviction for sex offences.
The fallout has extended beyond the Prime Minister. Health Secretary Wes Streeting sought to distance himself by publishing private WhatsApp messages with Mandelson, which revealed Streeting’s criticism of the government’s economic strategy, his fear he “is toast at the next election,” and his stark view that Israel was “committing war crimes before our eyes.” Streeting stated he is “embarrassed to have known Peter Mandelson.”
Starmer’s Apology and Ongoing Fallout
Facing intense pressure, Sir Keir Starmer has repeatedly apologised. He has stated he regrets appointing Mandelson and would not have done so had he known the full extent of the relationship with Epstein, admitting the vetting process was not “strong enough.” The Prime Minister has also made a direct apology to the victims of Epstein for the decision. He claims Mandelson “lied repeatedly” to his team about the nature of his ties to the financier.
A government spokesperson said: “We are committed to complying with the Humble Address in full, while continuing to support the Metropolitan Police with their investigation.” This refers to the parliamentary mechanism used to force the release of documents related to the appointment. The controversy continues to draw in other figures, with Tory criticism extending to the approval of a £70,000 severance payment to Mandelson after his sacking.
The scandal sits within the long shadow of Jeffrey Epstein’s crimes. Epstein was arrested on federal sex trafficking charges in July 2019 and died in jail in August 2019. His associate, Ghislaine Maxwell, was convicted in December 2021. The ongoing release of Epstein-related documents by the US Department of Justice continues to implicate prominent figures on both sides of the Atlantic, keeping the pressure on any government linked to his associates.
