From The Times
May 2, 2007
Lie over gay partner ends BP chiefÂ’s career
David Brown and Patrick Foster
The chief executive of BP resigned yesterday after a judge found that he had
lied to a court about his gay relationship with a 27-year-old student.
Lord Browne of Madingley, who was ennobled by Tony Blair, quit after the
House of Lords rejected his attempt to keep secret their relationship and
allegations that he had misused company resources.
The businessman will lose up to ÂŁ15.5 million in cash and shares by stepping
down three months earlier than planned.
Lord Browne was forced to resign after court documents showed that he had:
— Lied to the High Court about how he met his former lover, Jeff Chevalier,
whom he said he had met while “exercising in Battersea Park”;
— Used BP resources and staff to set up a company for his boyfriend;
— Attempted to “trash” the reputation of Mr Chevalier in court by claiming
that he was a drug user and alcoholic;
— Allegedly told Mr Chevalier details about his discussions on BP’s strategy
with Mr Blair and Gordon Brown
The documents give details of a series of meetings which Lord Browne, 59,
allegedly had with the Prime Minister, the Chancellor and Peter Mandelson, the
European Trade Commissioner.
Mr Chevalier, 27, claimed that these involved discussions about the prospect
of BP taking an “important strategic decision”. The Chancellor also allegedly
opposed a “scheme for the benefit of BP’s customers”. Mr Blair is also believed
to have asked Lord Browne how much each could expect to earn in the City after
the Prime MinisterÂ’s expected resignation next week.
Lord Browne said yesterday that the allegations against him were “full of
misleading and erroneous claims”. “I have always regarded my sexuality as a
personal matter, to be kept private. My initial witness statements, however,
contained an untruthful account about how I first met Jeff. This is a matter of
deep regret . . . It was retracted and corrected.”
Mr Chevalier, a student from Toronto, claimed that Lord Browne had used BP
staff and resources to set up a company for him trading in mobile ring tones.
Lord Browne was a director of the company. The Times has discovered that David
Allen, BPÂ’s group chief of staff and group managing director, was also a
director.
Lord Browne took Mr Chevalier on holiday, bought him clothes and paid for his
luxury accommodation. The businessman also made “substantial payments” to his
lover during their relationship and paid for him to study economics and
business at the University of Westminster so that he could stay on in Britain
with a student visa.
The relationship ended early last year and Mr Chevalier claimed that his
former partner reneged on a promise to help him adjust from his
multi-millionaire lifestyle.
Lord Browne resigned six hours after the House of Lords rejected his attempt
to prevent The Mail on Sundayfrom reporting the details of his four-year
relationship with Mr Chevalier.
The Timeshas learnt that Lord Browne will also lose his position as a
director of Goldman Sachs, the worldÂ’s leading investment bank. A senior source
said his role as the $500,000-a-year head of its audit committee was
“untenable”.
Lord Browne said yesterday that the allegations against him were misleading
and erroneous. “I deny categorically any allegations of improper conduct
relating to BP. The company has confirmed today that it has found no such
wrongdoing.”
Mr Justice Eady, in a High Court judgment, said that although Lord Browne had
apologised he was not prepared to make allowances for a “white lie” told to the
court.
He said that Lord Browne had used the “various honours he has received under
the present Government, when asking the court to prefer his account of what
took place”.
Mr Justice Eady said that Lord BrowneÂ’s assertion that Mr Chevalier was an
alcoholic “seems largely to have been based on an inference he drew when his
butler told him that his wine stocks were diminishing”.
The judge said he would not be reporting Lord BrowneÂ’s lie to the
Attorney-General because “it is probably sufficient penalty that the claimant’s
behaviour has had to be mentioned in this judgment”.
However, Associated Newspapers, publishers of The Mail on Sunday, said it
would make the court papers available to the Attorney-General.
Peter Sutherland, chairman of BP, said a review of the allegations of
misusing company assets and resources were “unfounded or insubstantive”.
He added: “It is a tragedy that he [Lord Browne] should be compelled by his
sense of honour to resign in these painful circumstances.”
Lord Browne was knighted in 1998 and made a life peer in 2001. He is on
first-name terms with many leading figures in the Labour Party and his
closeness to the Government has led to critics referring to BP as “Blair
Petroleum”.
He announced his retirement in January a week after The Mail on Sunday
contacted the oil giant with allegations about the relationship with Mr
Chevalier.
Lord Browne, who has always been fiercely protective about his private life,
had sought the injunction preventing reporting of the claims on the basis that
they were a breach of a confidence and a breach of privacy and that he had the
right to a private life and freedom of expression under the European Convention
on Human Rights.
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