BBC pays ?50,000 libel damages to Antigua premier

The BBC yesterday agreed in the high court to pay £50,000 libel damages to a Commonwealth leader accused of misusing health funds and being involved in gun running and drug trafficking.

Lester Bird, the prime minster of Antigua and Barbuda, accepted the settlement to halt legal action over allegations broadcast on Radio 4's Today programme and the World Service last July.

The corporation, which agreed to cover his legal costs of £25,000, apologised and accepted that the assertions were unfounded.

They included claims that he spent state health funds on lavish parties, holidays, and cosmetic surgery for friends.

The apology was made after BBC executives rejected a proposal to reach a deal with Mr Bird that would have involved broadcasting a "positive" story on the Caribbean premier.

The Bird family has dominated politics for years in a state that gained its independence in 1981 and has been involved in a number of scandals. His brother, Ivor, was convicted of cocaine smuggling seven years ago. The BBC suspected that a government appointed commission would find Mr Bird had misused £50m of health funds.

Antigua's high commissioner to Britain, Sir Ronald Sanders, yesterday insisted that the BBC had enhanced its reputation in the Caribbean by admitting it had made a mistake. "Justice has been done. The BBC made a false allegation and has now apologised, recognising that it made a grave error," said Sir Ronald. "Further, the payment of damages is very appropriate given the magnitude of this slur."

The BBC said: "The BBC sincerely regrets the broadcasts of which Mr Bird complains, and offers its sincere apology to [him]. It hopes that through the making and reporting of this statement the record will have been set straight."