Charles accepts Peat report

The senior royal aide at the centre of an inquiry into allegations of misconduct in the Prince of Wales's household today resigned.

News of Mr Fawcett's resignation came as the Prince's private secretary Sir Michael Peat published a report into the misconduct allegations.

The report recommended tighter controls and procedures.

But the inquiry, by Sir Michael Peat and barrister Edmund Lawson QC, uncovered no evidence of serious wrongdoing, despite expressing misgivings about some staff practices.

The Peat inquiry found:

  • No proper records of gifts to the Prince were kept

  • Of 180 official gifts, 19 went missing

  • The Prince sold unwanted gifts for charity

  • He gave away smaller gifts to staff

  • Seven private gifts were sold or exchanged

  • Staff accepted gifts and hospitality from outsiders despite rules forbidding it

  • Mr Fawcett, the Prince's personal assistant, bent the rules but was "not guilty" of financial impropriety

  • No evidence of staff selling gifts or other items without authorisation, or of taking commissions was discovered

  • An allegation of homosexual rape made by a member of staff against one of the Prince's closest aides should not have been treated so dismissively

  • There was no improper conduct over the collapse of the Old Bailey theft trial of former royal butler Paul Burrell.

    The 111-page report contains evidence, collected during the non-statutory inquiry's four-month investigation, from 59 people, including the Prince but no other member of the Royal Family.

    With "very few exceptions" those asked co-operated with the investigation.

    Despite his resignation Michael Fawcett will still work for the Prince on a freelance basis.

    He is to set up his own event management business and has been guaranteed work by the Prince, who also gave him a cash severance package.

    The Prince said: "I am enormously grateful to Mr Fawcett for all he has done over many years and I wish him well with his new business."

    Charles in Bulgaria

    The Prince, who is out of the country on a short official visit to Bulgaria, is said to be gloomy and fearful of further damaging allegations being aired in the media.

    Commenting on the Peat report, the Prince of Wales said today: "The review does not make comfortable reading in some parts, but I accept full responsibility and all the recommendations."

    He added: "I am determined that the administrative procedures in my household should be to the highest standards and I have asked Michael Peat to ensure that this is the case."

    The four areas of inquiry were:

    • Was there an improper cover-up of the rape allegation made by George Smith in 1996?

    • Was there anything improper or remiss in the conduct of the Prince of Wales's household with respect to the termination of the Burrell trial?

    • Have official gifts given to the Prince been sold?

    • Have any staff in the Prince's household received improper payments or other benefits?

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