An investigation into Mr Bashir and the interview process was conducted after Charles Spencer alleged that the BBC interviewer had “showed him fake financial documents relating to his sister’s former private secretary and another former royal household member, and told outlandish and untrue stories about the royal family to gain access to the princess”.
Earl Spencer wrote: “The right result – appalling what Patrick Jephson had to go through as a result of grotesque ‘journalism’.
“Also terrible that it was covered up for so long by senior people at the @BBCNews – there will be more to come out on all this, before long.”
The investigation was presided over by Lord Dyson, a former Master of the Rolls and Head of Civil Justice.
The BBC released a statement on Thursday expressing their remorse and apologising to Mr Jephson “unreservedly”.
They said: “The BBC accepts and acknowledges that serious harm was caused to Commander Jephson as a result of the circumstances in which the 1995 interview with Diana, Princess of Wales, was obtained, which have become apparent as a result of the Dyson Report.
“The BBC apologises unreservedly to Commander Jephson for the harm caused to him and has paid his legal costs.
“The BBC has also paid Commander Jephson a substantial sum in damages, which he intends to donate in full to British charities nominated by him.”
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He said: “After more than 25 years, it is a relief finally to reach a conclusion to this painful episode.
“I am grateful to Lord Dyson and the journalists whose tenacity has brought the truth to light, and I now look forward to donating the damages I have been awarded to Tŷ Hafan, the hospice for children in Wales, in memory of the late Diana, Princess of Wales.”