Getty ImagesA pay-off given to Lord Mandelson after he was sacked as ambassador to the US is being reviewed, UK Foreign Office sources have told the BBC.
The review was instigated after fresh details emerged about the peer's contact with Jeffrey Epstein and a separate police investigation was initiated in the UK, they said.
Police searched two homes linked to Lord Mandelson on Friday after the latest release of files relating to Epstein indicated email exchanges about fiscal policy. Lord Mandelson has not been arrested.
The Labour peer is thought to have been given a pay-off of up to £55,000 after he was sacked as the UK's ambassador to the US in September over his links with the late convicted sex offender.
Government sources confirmed that the Foreign Office reached a financial settlement with Lord Mandelson, but have not said how much this was for.
However, he is believed to have been given an exit payment equivalent to three months' salary, or up to £55,000, the Times reports.
A Foreign Office spokesperson said: "Peter Mandelson's civil service employment was terminated in accordance with legal advice and the terms and conditions of his employment.
"Normal civil services HR processes were followed. Further information will be provided to Parliament as part of the government response to the motion passed last week which is being co-ordinated by the cabinet office."
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