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A 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 in the light of fresh details emerging about Lord Mandelson's contact with Jeffrey Epstein in the latest release of files in the US, as well as a separate police investigation beginning in the UK, they said.
Police searched two homes linked to Lord Mandelson on Friday after the files indicated email exchanges about fiscal policy. He has not been arrested.
The Labour peer was let go as the UK's ambassador to the US in September after details about his relationship with the late convicted sex offender.
Lord Mandelson is thought 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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