The European Union's anti-fraud office (Olaf) has launched a formal investigation into Lord Peter Mandelson, the former EU trade commissioner who was dismissed as UK ambassador to the US due to his connections with convicted sex offender Jeffrey Epstein.
Olaf confirmed on Friday that it had gathered sufficient information to proceed with a probe into alleged misconduct during Mandelson's tenure as trade commissioner from 2004 to 2008. The investigation was requested by the European Commission two months ago.
While Olaf stated it is too early to determine whether the allegations involve fraud, the probe will examine Mandelson's exchanges with Epstein during his time as commissioner. The scope covers all four years and is limited to conduct by EU staff and members of institutions.
Among the claims are that Mandelson provided Epstein with advance notice of a €500 billion bailout package during the eurozone crisis in 2010, when EU governments pledged to do "whatever it takes" to prevent Greece's financial turmoil from spreading.
Mandelson has not publicly commented, but the BBC understands he denies any criminal behavior and asserts he was not motivated by financial gain. Olaf has no prosecutorial powers but will refer any criminal elements to the European Prosecutor's Office.
The investigation will analyze documents and conduct IT forensics where available. Potential outcomes include judicial, financial, administrative, or disciplinary recommendations, which could affect Mandelson's pension.
Earlier this year, the UK's Metropolitan Police launched a separate criminal investigation into whether Mandelson passed market-sensitive information while serving as business secretary in 2009. He was removed as UK ambassador to the US in September 2025 as details of his friendship with Epstein emerged.
The scandal continues to impact UK politics, with former top civil servant Sir Olly Robbins alleging he was pressured to expedite Mandelson's ambassadorial appointment.