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Popular British radio host David Whitely, known as “Sideman” on BBC’s Radio 1Xtra, quit his job after the network decided to include a racial slur in a news story about a racist attack.

A photo has emerged reportedly showing journalist Martin Bashir following an alleged visit to a takeaway and wine shop, despite the corporation saying he was too ill to respond to claims made by Princess Diana's brother.

The Mail on Sunday published the image, which it said was taken on Friday evening outside the 57-year-old's north London home.

It comes amid allegations made by the late princess' sibling, Earl Spencer, that he was shown false financial documents by then-Panorama reporter Bashir to gain access to her prior to her bombshell TV interview on the current affairs programme in 1995.

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In a statement issued on Sunday, the corporation said: 'The BBC has made clear it will investigate the issues raised and that this will be independent. We will set out the terms of reference in due course. We will do everything possible to get to the bottom of this.

'Martin Bashir is signed off work by his doctors as he is currently recovering from quadruple heart bypass surgery and has significant complications from having contracted COVID-19 earlier in the year.'

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The BBC has already apologised for Bashir faking two bank statements, which Earl Spencer says the journalist used to help land his interview with Diana 25 years ago.

The corporation has insisted the statements played 'no part in her decision to take part in the interview'.

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The broadcast exclusive sent shockwaves through the monarchy due to Diana's comments about the state of her marriage to Prince Charles.

But now the earl has shared with the Daily Mail notes of his meeting with Bashir and Diana in 1995.

He says the notes are contemporaneous and document a string of false claims allegedly made by the reporter.

This included the bogus allegations that Diana was under surveillance; that her bodyguard was plotting against her, and close friends were betraying her; and that MI6 had recorded Prince Charles and his private secretary planning the 'end game'.

They were apparently designed to play to the paranoia of the princess, who feared she was being deceived by her aides and in-laws.

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While Earl Spencer told the Mail he concluded Bashir was a fantasist and apologised to his sister for wasting her time, unbeknown to him, Diana kept in touch with Bashir and two months later the explosive 'there are three of us in this marriage' interview was broadcast.

Bashir, now the BBC's religion editor, is seriously unwell with COVID-related complications and is not in a position to respond to the earl's allegations, the corporation has said.

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In a series of tweets posted earlier this month, Earl Spencer said the broadcaster was 'incapable of honestly facing up to the ugly truth of this matter'.

The head of a Westminster committee has told Sky News that the earl's latest allegations are 'deeply disturbing'.

Tory MP Julian Knight, chairman of the Commons Digital, Culture, Media and Sport Committee, said: 'This is a very complex and deeply disturbing tale and it is important for public confidence in BBC journalism that a thorough, urgent and independent investigation is carried out and my committee will be watching developments very closely indeed.'

An internal inquiry by the corporation in 1996 examined claims Bashir had used false financial documents, purporting to show a then member of the earl's staff was leaking stories, as a way to persuade the princess to talk.

The BBC maintains there is a written note from Diana - although it no longer has a copy - saying she had not seen the false bank statements, and they played no part in her decision to give the interview.

The corporation has previously said in a statement that Bashir admitted commissioning the mocked-up bank documents and it is understood the journalist was found to have 'done wrong' at the end of the process, but it is not known what sanction, if any, he faced.

In an earlier statement, a BBC spokeswoman highlighted an apology the earl has received from its director-general Tim Davie over the mocked-up documents.

By Rory Cellan-Jones
Technology correspondent, BBC News

World of Warcraft is played by more than nine million people
The companies behind Call of Duty and World of Warcraft are merging in a deal which could shake up the global video games industry.

Activision and Blizzard have said they will form 'the world's most profitable games business' in a deal worth $18.8bn (£9.15bn).

US-based Activision also makes hit console games such as the Tony Hawk series and Guitar Hero.

Nine million people pay a monthly subscription to play World of Warcraft.

'High-growth industry'

Blizzard is the biggest player in online gaming and World of Warcraft is the global market leader of what are known as massively multi-player online role-playing games, or MMORPGs.

It is currently owned by the French media group Vivendi.

As part of the merger plan, Blizzard will invest $2bn in the new company, while Activision is putting up $1bn.

The merged business will be called Activision Blizzard and its chief executive will be Activision's current CEO Bobby Kotick. Vivendi will be the biggest shareholder in the group.

Jean-Bernard Levy, Vivendi chief executive, said: 'This alliance is a major strategic step for Vivendi and is another illustration of our drive to extend our presence in the entertainment sector.

'By combining Vivendi's games business with Activision, we are creating a worldwide leader in a high-growth industry.'

Different strengths

The two firms are hoping that their different strengths will combine to form a business which is powerful on every gaming platform and in every territory.

Blizzard is strong in Asia, where its Starcraft series has proved hugely popular.

Starcraft, a strategy game first released in 1998, is played by millions of South Koreans in gaming cyber-cafes, and by professional gamers on television.

Activision has developed a presence on all three new generation game consoles - Microsoft's Xbox 360, Sony's PlayStation 3 and the Nintendo Wii - with franchises such as Spider-Man and X-Men.

The games software industry has been through turbulent years, with companies changing ownership and going in and out of business in rapid succession.

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Activision was formed in 1979 and went through bankruptcy and a series of alliances and mergers before becoming successful.

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Blizzard had been through a number of owners before ending up in the hands of Vivendi in 1998.