William Shawcross, the Public Appointments Commissioner, has withdrawn himself from the investigation into the hiring of Richard Sharp as BBC Chairman.
This move comes after Shawcross revealed he had met Sharp on previous occasions.
The investigation follows reports that Sharp possibly helped Boris Johnson to receive an £800,000 loan facility shortly before his appointment to the post.
Public Appointments Commissioner, William Shawcross, had launched an investigation into whether the rules had been followed in the hiring of Richard Sharp as BBC Chairman after reports emerged that Sharp helped Boris Johnson secure an £800,000 loan before his appointment.
However, Shawcross has now recused himself from the investigation due to previously meeting Sharp.
Shawcross announced his decision in a letter to the chair of the DCMS Committee, stating that he will delegate his powers to an independent investigator appointed by his office.
"They will have sole responsibility and will be supported by my officials," he added.
The timing of Shawcross' decision has been criticised by Labour's Shadow Culture Secretary, Lucy Powell.
On Twitter, she said, "It's taken him a week to realise a conflict of interest, sharing these cosy relationships.
The truth must come out about this appointment."
The investigation into the hiring of Richard Sharp as BBC Chairman has now been handed over to an independent investigator, who will have the sole responsibility of determining whether the rules were properly followed during Sharp's appointment.