Bill Gates was alerted to Epstein risks during foundation's fundraising discussions

Bill Gates and senior leaders at the Gates Foundation were repeatedly cautioned by staff about the reputational risks of engaging with convicted sex offender Jeffrey Epstein, according to a review cited in a report by the Financial Times.

The review, conducted by law firm WilmerHale, found that the foundation continued exploring a potential fundraising collaboration with Epstein for more than three years despite concerns raised internally. However, investigators found no evidence that foundation employees were aware of Epstein's ongoing criminal conduct at the time.

Staff raised concerns multiple times

The review was commissioned by Gates Foundation chief executive Mark Suzman and involved more than 50 interviews with current and former employees, along with an examination of extensive written records.

Following the review, the $89 billion Gates Foundation announced a series of governance and oversight reforms. Bill Gates will continue as chair of the organisation, which remains primarily funded by the Microsoft co-founder.

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“The work we do depends on integrity and earning and maintaining the trust of partners,” said Suzman.

“That’s why we welcome the findings of this external review and are moving forward with board-approved actions to further strengthen how we vet partners, manage risk and ensure accountability going forward.”

According to the review summary, Gates was “aware of reputational concerns” related to Epstein's 2008 guilty plea for soliciting a minor when discussions between the two began in 2011. Those interactions led foundation staff to meet Epstein to discuss a proposal for a donor-advised fund (DAF) that could mobilise investment for global health initiatives.

“Foundation staff working on the potential DAF raised on multiple occasions the risks of associating with Epstein because of his prior conviction, and those concerns were raised to senior leadership, including Mr Gates,” the review summary stated.

Collaboration ended after 2014 meeting

The foundation's engagement with Epstein ended in December 2014 after he hosted a breakfast meeting at his Manhattan residence attended by Gates, foundation staff and a group of potential donors.

“Epstein’s guests did not appear informed about the DAF and it became clear to Mr Gates and foundation staff that Epstein had misrepresented the potential donors’ knowledge of and willingness to commit to the DAF,” the summary said. “Soon thereafter, the foundation stopped working with Epstein on the DAF concept.”

In a statement issued after the review, the foundation said it regretted having “any employees interact with Epstein in any way”.

Gates has previously expressed regret over his association with Epstein, saying he regretted “every minute” he spent with the financier because he believed, incorrectly, that Epstein could help secure charitable contributions from wealthy donors.

Gates to remain foundation chair

The Microsoft co-founder has not been accused of involvement in Epstein's crimes. Despite scrutiny over their association, Gates has remained the leading funder and public face of the foundation, to which he has contributed tens of billions of dollars.

“Completing this review is an important step in providing the clarity that partners, employees and grantees deserve as well as strengthening our oversight with additional policies going forward,” Gates said.

“We are committed to ensuring trust and transparency are never compromised.”

Buffett also weighed in

The review comes days after Warren Buffett, a longtime friend of Gates, excluded the Gates Foundation from his latest annual share donation. Buffett has previously donated more than $47 billion to the organisation.

In a separate interview, the Berkshire Hathaway chairman described Gates's relationship with Epstein as “distasteful” but said he could “picture” himself making a similar mistake in choosing associates.

Governance changes announced

Among the changes announced by the foundation is a centralised vetting process for prospective funding facilitators who have ties to Gates, senior leadership or members of the governing board.

It will also introduce a formal mechanism to identify and escalate organisational risks associated with projects introduced by those individuals.