BBC chairman Richard Sharp has resigned over his role involving a $1 million given to former UK Prime Minister Boris Johnson.

Investigation into the loan deal found Mr Sharp, a former Goldman Sachs banker and major donor to Mr Johnson’s Conservative Party, culpable of failing to disclose his involvement in arranging the money for the former British prime minister.

Mr Sharp, in a video statement just before the report was released, said his failure to inform the authorities about the loan was “inadvertent and not material” and that he chose to step down from the BBC board to “prioritise the interests of the BBC.”

According to The New York Times, Mr Sharp had promised the ex-prime minister to arrange a meeting between a wealthy Canadian businessman and Mr Johnson’s distant cousin, Sam Blyth, and a senior government official, who could help facilitate the loan.

Mr Blyth offered to serve as guarantor so that Mr Johnson, who was experiencing financial constraints following his recent divorce and a new family, could secure $996,000.

The controversy put the BBC in a bad spotlight over the ability of Mr Sharp to maintain impartial journalism, especially in the UK.

Mr Sharp apologised for his “oversight” and the distraction the loan deal had caused the BBC.