Tim Davie condemns ‘serious racist term' used by John Torode
Australian-born Torode, 59, started presenting MasterChef alongside Gregg Wallace in 2005.
On Monday night, Torode confirmed he was the subject of an allegation of using racist language that was upheld as part of a review carried out by law firm Lewis Silkin into the alleged behaviour of his co-presenter Wallace.
In an interview with BBC News on Tuesday, Davie said he saw the situation as an opportunity for the corporation to 'reset'.
He said he was not directly involved with the matter but was told about the recommendation not to renew Torode's contract and was 'happy that the team were taking action'.
He went on: 'It's really important that we are taking this seriously. It's a reset where we make sure that people are living up to the values we expect across the board.'
Asked exactly what Torode said, Davie replied: 'I'm not going to give you the exact term, because I think, frankly it was serious racist term, a serious racist term, which does not get to be acceptable in any way, shape or form.'
A statement from production company Banijay UK released earlier said: 'In response to John Torode's statement, it is important to stress that Banijay UK takes this matter incredibly seriously.
'The legal team at Lewis Silkin that investigated the allegations relating to Gregg Wallace also substantiated an accusation of highly offensive racist language against John Torode which occurred in 2018.
'This matter has been formally discussed with John Torode by Banijay UK, and whilst we note that John says he does not recall the incident, Lewis Silkin have upheld the very serious complaint.
'Banijay UK and the BBC are agreed that we will not renew his contract on MasterChef.'
The Lewis Silkin report, commissioned by Banijay UK, found 45 out of 83 allegations against Wallace were substantiated, alongside two standalone allegations made against other people, including one for using racist language.
Torode confirmed on Monday night he was the person alleged to have used racist language but said he had 'no recollection of the incident' and was 'shocked and saddened' by the allegation.
A BBC spokesperson said: 'John Torode has identified himself as having an upheld allegation of using racist language against him.
'This allegation – which involves an extremely offensive racist term being used in the workplace – was investigated and substantiated by the independent investigation led by the law firm Lewis Silkin. John Torode denies the allegation.
'He has stated he has no recollection of the alleged incident and does not believe that it happened. He also says that any racial language is wholly unacceptable in any environment.
'The BBC takes this upheld finding extremely seriously. We will not tolerate racist language of any kind and, as we have already said, we told Banijay UK, the makers of MasterChef, that action must be taken.
'John Torode's contract on MasterChef will not be renewed.'
Davie insisted MasterChef does have a future with the broadcaster beyond 2028, when its current deal runs out, while presenting the corporation's 2024/2025 annual report earlier on Tuesday.
Davie said: 'I absolutely think it does (have a future), I think a great programme that's loved by audiences is much bigger than individuals.
'It absolutely can survive and prosper, but we've got to make sure we're in the right place in terms of the culture of the show.'
Downing Street has said it 'utterly condemns' any instance of racist language after the allegation made against Torode was upheld.
'When it comes to racism (it) clearly has no place at the BBC or anywhere in society, and we utterly condemn any instances of racist language or abuse in the strongest possible terms,' Prime Minister Sir Keir Starmer's official spokesman said.
'And it's obviously up to the BBC, who are operationally independent from Government, to take forward any necessary next steps.'
It comes after the BBC addressed the future of a series of MasterChef filmed last year, which has not yet been aired, on Monday, saying they had not made a final decision on broadcasting it.
A spokesperson for the corporation said: 'We know this is disappointing for fans of the show and those who took part, and at the appropriate time Banijay UK will consult further with the amateur contestants.'
The MasterChef upheaval comes as the BBC faces scrutiny over the Gaza: How To Survive A Warzone documentary which, after a review, was found to have breached the corporation's editorial guidelines on accuracy.
The corporation has also been criticised over its coverage of Glastonbury, particularly the live stream of punk duo Bob Vylan's set, during which singer Bobby Vylan, whose real name is reportedly Pascal Robinson-Foster, led crowds in chants of 'death, death to the IDF (Israel Defence Forces)'.
In 2022, Torode was made an MBE in the Queen's Birthday Honours, for services to food and charity. He became a familiar face to TV audiences in 1996 as the resident chef on ITV's This Morning, before joining MasterChef alongside Wallace when it was known as MasterChef Goes Large.

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'This allegation – which involves an extremely offensive racist term being used in the workplace – was investigated and substantiated by the independent investigation led by the law firm Lewis Silkin. John Torode denies the allegation. 'He has stated he has no recollection of the alleged incident and does not believe that it happened. He also says that any racial language is wholly unacceptable in any environment. 'The BBC takes this upheld finding extremely seriously. We will not tolerate racist language of any kind and, as we have already said, we told Banijay UK, the makers of MasterChef, that action must be taken. John Torode's contract on MasterChef will not be renewed.' Davie insisted MasterChef does have a future with the broadcaster beyond 2028, when its current deal runs out, while presenting the corporation's 2024/2025 annual report earlier on Tuesday. Davie said: 'I absolutely think it does (have a future), I think a great programme that's loved by audiences is much bigger than individuals. 'It absolutely can survive and prosper, but we've got to make sure we're in the right place in terms of the culture of the show.' Downing Street has said it 'utterly condemns' any instance of racist language after the allegation made against Torode was upheld. 'When it comes to racism (it) clearly has no place at the BBC or anywhere in society, and we utterly condemn any instances of racist language or abuse in the strongest possible terms,' Prime Minister Sir Keir Starmer's official spokesman said. 'And it's obviously up to the BBC, who are operationally independent from Government, to take forward any necessary next steps.' The BBC said it has not yet made a final decision on whether to broadcast a series of MasterChef filmed last year with Wallace and Torode. A spokesperson for the corporation said: 'We know this is disappointing for fans of the show and those who took part, and at the appropriate time Banijay UK will consult further with the amateur contestants.' In 2022, Torode was made an MBE in the Queen's Birthday Honours, for services to food and charity. He became a familiar face to TV audiences in 1996 as the resident chef on ITV's This Morning, before joining MasterChef alongside Wallace when it was known as MasterChef Goes Large.