European Anti-Fraud Office to look into the former US ambassador’s time as trade commissioner in Brussels

Peter Mandelson is facing an inquiry by the EU’s anti-fraud agency after the European Commission requested the body look into his activities during his time as trade commissioner in Brussels.

The commission said it referred the peer, 72, to the European Anti-Fraud Office (Olaf) last week after the US Department of Justice released documents allegedly showing he shared sensitive government information with sex offender Jeffrey Epstein.

Mandelson served as EU trade commissioner between 2004 and 2008 before he returned to the UK government as business secretary. The files suggested that among information he shared with Epstein was details of a €500bn bailout to save the euro in 2010.

Mandelson, who has denied any wrongdoing, was arrested on Monday over allegations of misconduct in public office during his friendship with Epstein. He was released on bail hours later but he is understood to have surrendered his passport after claims – described by his lawyers as “baseless” – that he was planning to flee the country.