BBC to pay £50,000 for libelling PM of Antigua

The BBC was ordered to pay £50,000 libel damages to the Prime Minister of Antigua and Barbuda yesterday after falsely claiming he misappropriated healthcare budgets for parties and foreign trips.

In the second libel case in a year, the BBC admitted it was wrong over allegations that Lester Bird took more than $200m (£127m) to spend on parties, presents, travel and cosmetic surgery for friends.

A High Court judge in London heard the claims were made on Radio 4's Today programme and the World Service in July. The Today programme also suggested Mr Bird had been involved in gun running and drug trafficking.

The case follows that of Oryx, a diamond firm that was linked to Osama bin Laden and his terrorist organisation, Al-Qa'ida in a report on the Ten O'Clock News last October. Five-figure damages have been already paid to one of Oryx's directors, Kamal Mahfoudh Halfan al-Obaidani.

In the case of Lester Bird, the reports followed a commission of inquiry held in Antigua into the body that administers the country's medical benefits. The commission found evidence of maladministration and misconduct.

But the inquiry did not find Mr Bird had expropriated any funds or was guilty of misconduct. Neither British or American authorities ever accused him of dealing in arms or drugs, Mr Bird's counsel, Tom Shields QC, told Mr Justice Gray.

The allegations had been an unpleasant experience, said Mr Shields, because the BBC was an influential broadcaster. The BBC apologised in court and will broadcast an apology.

The BBC will pay costs in the case. The corporation said they would be "significantly less" than £50,000 because it immediately admitted its error.