The unprecedented donation includes £1.15 million – the amount the Corporation made from selling the global rights to Bashir’s explosive Princess Diana interview – plus reparations.
An inquiry by Lord Dyson in May found Bashir had lied to obtain the 1995 interview, using deceitful methods later covered up by a ‘woefully ineffective’ internal investigation by Tony Hall, who later became BBC director-general.
While the exact terms of the reparations arrangement have yet to be finalised, and there is no date set for the money to paid, it is understood it will come from BBC Studios, the Corporation’s trading arm – a commercial operation not funded by the licence fee.
The BBC will pay a charity chosen by the Royal Family £1.5m after the bombshell revelations that followed Lord Dyson’s report into Martin Bashir’s 1995 world exclusive interview with Princess Diana (above)
Lord Dyson was commissioned by the BBC to examine whether Princess Diana would have given the historic 1995 interview had it not been for Mr Bashir’s underhand tactics
Princes Charles, William and Harry are set to be involved in any final decision on how the money should be used
Royal sources say Prince Charles and his sons William and Harry will be involved in deciding how it should be used.
Last night Diana’s close friend Rosa Monckton said: ‘This is an admirable decision, though obviously it cannot undo the damage that has been done or erase the BBC’s guilt.’
Although the scandal was uncovered by this newspaper 25 years ago, it took the BBC until earlier this year to acknowledge Bashir’s wrongdoing, having previously exonerated him.
Following publication of Lord Dyson’s report, William condemned the Corporation for deceiving his mother, ruining her life and helping to hasten her divorce.
He said the BBC’s failures had contributed to Diana’s ‘fear, paranoia and isolation’ in her final years, and that the interview made a ‘major contribution to making my parents’ relationship worse’.
It is understood that the donation idea was first suggested by Diana’s brother, Earl Spencer, who said some of the money made by the BBC should go to Diana’s charities.
The Corporation humiliating confessed that ‘Martin Bashir employed lies and fake documents to gain access to the princess’ and that he ‘made a series of lurid and untrue claims’
Tim Davie, has already sent letters of unconditional apology to the Queen, Charles, William, Harry and Earl Spencer (pictured above)
Following publication of Lord Dyson’s report, William condemned the Corporation (right) for deceiving his mother, ruining her life and helping to hasten her divorce
The decision to donate all of it comes against a background of ongoing discussions, initiated by William, between the broadcaster and Palace courtiers. William is said to believe there is further evidence to uncover, and expressed interest in continuing private conversations with the BBC ‘to see what comes out’.
However, the current director-general, Tim Davie, is now likely to view the reparations as a way of drawing a line under the affair.
He has already sent letters of unconditional apology to the Queen, Charles, William, Harry and Earl Spencer.
His letters reportedly included the humiliating confessions that ‘Martin Bashir employed lies and fake documents to gain access to the princess’ and that he ‘made a series of lurid and untrue claims’.
Mr Davie also apologised to Matt Wiessler, the whistleblower who revealed Bashir’s deceit, and who is now set to receive between £750,00 and £1 million compensation.
The award-winning graphic artist came forward a quarter of a century ago to expose the Panorama reporter for instructing him to produce phoney bank statements said to be instrumental in securing the Diana interview.
Mr Wiessler believed they were faithful reproductions of genuine documents, but when he later revealed what Bashir had done he was blacklisted by the BBC.
He was finally vindicated by Lord Dyson’s inquiry.
Two months ago it was reported that Mr Davie had agreed not to air the 1995 interview in full again but said the use of shorter clips in context should be open to further discussion.
It was claimed the refusal to give a broader pledge never to show excerpts angered the Palace – courtiers demanded a commitment from the BBC to put stronger limits on its use.
Prince Charles was said to be furious about ‘lurid lies’ in the interview, including the claim that he was not suited to be monarch.
He is believed to be deeply concerned that this clip is never replayed because of the impact it could have on public perception of his enthusiasm about inheriting the throne.
Bashir was rehired by the BBC as religion editor in 2016 but abruptly stepped down on May 14, citing poor health.
The BBC and Kensington Palace declined to respond.