The BBC has apologised “unreservedly” to the Princess of Wales’ private secretary Patrick Jephson and has paid him a “substantial sum” in damages over the way Martin Bashir obtained his 1995 Panorama interview.

A BBC statement said the broadcaster “accepts and acknowledges that serious harm” was caused to Mr Jephson as a result of the circumstances in which the interview with Princess Diana was obtained.

It added that a settlement was made following the publication of the Dyson Report, which criticised methods used to secure the bombshell interview.

The BBC said Mr Jephson intends to donate all of the “substantial sum in damages” to British charities.

Princess Diana’s interview with Martin Bashir made headlines worldwide as she spoke publicly about her marriage with Prince Charles and famously said “Well, there were three of us in this marriage, so it was a bit crowded.”

Last year the Dyson Inquiry found that the BBC covered up “deceitful behaviour” used by Mr Bashir to secure his exclusive interview with Princess Diana.

The report found that the journalist was in “serious breach” of the BBC’s producer guidelines when he faked bank statements and showed them to Earl Spencer to gain access to the princess.

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Following the report, Prince William said the interview “contributed significantly” to his mother’s “fear, paranoia and isolation” – and called for the episode to never be broadcast again.

In 2016, Mr Bashir became the BBC’s religious affairs correspondent – some two decades after the Panorama episode that made him a household name in journalism.

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