Princess Diana’s private secretary, BBC reach a settlement over 1995 interview

The BBC said on Thursday it has paid a "substantial sum" and apologised to Princess Diana´s former private secretary over a bombshell 1995 interview found to have been obtained using deception.

An independent report by senior judge John Dyson last year concluded interviewer Martin Bashir tricked Diana´s brother into helping to arrange the interview, in which she spoke candidly about her troubled marriage to Prince Charles.

"The BBC and Commander Patrick Jephson have reached a settlement following publication of the Dyson report," the BBC said in a statement.

Jephson, who aided Diana from 1988 to 1996, reportedly said Bashir "seduced and betrayed" her into agreeing to the interview, which sent shockwaves through the royal family.

"The BBC accepts and acknowledges that serious harm was caused to Commander Jephson as a result of the circumstances in which the 1995 interview ... was obtained," the broadcaster said.

Dyson concluded that Bashir commissioned fake bank statements that falsely suggested some of Diana´s closest aides were being paid by the security services to keep tabs on her.

The BBC "apologises unreservedly to Commander Jephson for the harm caused to him", has paid his legal costs and "a substantial sum in damages".

The broadcaster said Jephson intends to donate the damages to charity. (AFP)