Pressure is increasing connected BBC president Richard Sharp aft a captious study from MPs into his appointment.
He made "significant errors of judgement" acting arsenic a go-between connected a indebtedness for Boris Johnson, portion applying for the post, the committee said.
The SNP's John Nicolson, a committee member, told the BBC Mr Sharp's presumption was "extremely difficult".
Mr Sharp said helium did not assistance put a warrant connected the indebtedness oregon springiness Mr Johnson fiscal advice.
Speaking connected BBC's Sunday With Laura Kuenssberg, Labour's Lisa Nandy besides said Mr Sharp's presumption was becoming "increasingly untenable".
Mr Sharp's engagement successful the then-Prime Minister Mr Johnson obtaining an £800,000 indebtedness warrant has travel nether scrutiny since the Sunday Times archetypal reported the claims past month.
Businessman Sam Blyth, a distant relative of Mr Johnson and Mr Sharp's friend, had reportedly raised the thought of acting arsenic a indebtedness guarantor for Mr Johnson successful 2020.
Mr Sharp was named arsenic the government's preferred campaigner for the BBC chairmanship successful January 2021 and astatine the clip the Commons Digital, Culture, Media and Sport (DCMS) Committee backed his appointment.
The government's prime is yet decided by the premier minister, connected the proposal of the civilization secretary, who is successful crook advised by a panel.
This week the BBC president was recalled to look earlier the committee and its study was published connected Sunday.
Speaking to MPs helium said helium had introduced his person Mr Blyth to the Cabinet Office.
In its report, the DCMS Committee criticised Mr Sharp's nonaccomplishment to notation immoderate engagement helium had successful events surrounding the indebtedness erstwhile they were considering his suitability for the occupation 2 years ago.
The study said his decisions to "become progressive successful the facilitation of a indebtedness to the then-prime curate portion astatine the aforesaid clip applying for a occupation that was successful that aforesaid person's gift" and nonaccomplishment to disclose this to the committee undermined assurance successful the nationalist appointments process.
The MPs concluded: "Mr Sharp should see the interaction his omissions volition person connected spot successful him, the BBC and the nationalist appointments process."
The report, cautiously worded, does not accidental successful achromatic and achromatic that helium should quit. But it says helium should "consider the impact" of what has happened, which is simply a diplomatic mode of raising that point.
On Sunday With Laura Kuenssberg, the SNP's Mr Nicolson went further than the study had, saying Mr Sharp's presumption was "extremely difficult" aft helium "broke the rules".
He said: "He has mislaid the spot of the BBC staff, that's precise clear.
"When you motion up for that occupation exertion you are asked if there's thing astir your relationships with anybody that could origin embarrassment.
"This has intelligibly caused embarrassment."
Mr Nicolson said Mr Sharp had not told MPs astatine the clip of his assignment that helium had facilitated an £800,000 indebtedness for Mr Johnson "who past gave him the job".
"It's each a spot banana republic," helium added.
Cabinet curate Andrew Mitchell told the aforesaid programme it was up to the BBC to determine what to bash implicit Mr Sharp's future. He besides said it was important to hold for a reappraisal into his hiring by the watchdog that oversees nationalist appointments.
But helium was challenged connected this during the programme arsenic according to the BBC charter the president tin lone beryllium removed from station by the government, not the BBC.
Shadow levelling up caput Lisa Nandy said it was "right that the BBC is capable to publish" its ain reappraisal into Mr Sharp's appointment, and that "due process is followed".
But she added that erstwhile the BBC's study was published, if questions inactive could not beryllium answered, "the integrity of the BBC is much important than 1 individual".
'Acted successful bully faith'
This week Mr Sharp told the committee helium had met Cabinet Secretary Simon Case successful December 2020 to get support to walk connected businessman Mr Blyth's details to him.
However, astatine the aforesaid gathering helium had told Mr Case that helium had applied for the BBC job, and truthful agreed helium would person "no further participation" successful bid to debar immoderate struggle of involvement oregon cognition of struggle fixed his exertion to the BBC.
In its report, MPs connected the DCMS said Mr Sharp had recognised the request to beryllium "open and transparent" by bringing it to the attraction of the furniture secretary, but "failed to use the aforesaid standards of openness and candour successful his determination not to divulge this accusation during the interrogation process oregon to this committee during the pre-appointment proceeding [for the BBC job]".
"Mr Sharp's nonaccomplishment to disclose his actions to the sheet and the committee, though helium believed this to beryllium wholly proper, represent a breach of the standards expected of individuals applying for specified nationalist appointments," the study added.
A spokesperson for Mr Sharp said helium did not facilitate an instauration betwixt Mr Johnson and Mr Blyth and helium was not progressive successful the statement of a indebtedness betwixt them.
"Mr Sharp appreciates that determination was accusation that the committee felt that it should person been made alert of successful his pre-appointment hearing. He regrets this and apologises.
"It was successful seeking astatine the clip to guarantee that the rules were followed, and successful the content that this had been achieved, that Mr Sharp acted successful bully religion successful the mode helium did."
The spokesperson added: "Mr Sharp believed helium had dealt with the contented by proactively briefing the furniture caput that helium was applying for the relation of BBC chair, and truthful beyond connecting Mr Blyth with Mr Case, helium recused himself from the matter."
The DCMS Committee study was besides captious of ministers who had defended the determination to endorse Mr Sharp successful 2021 aft the enactment implicit the indebtedness broke, contempt the information they had not been told astir the situation.
"The information that ministers person cited this committee's archetypal study connected Mr Sharp's assignment arsenic a defence of the process was followed, erstwhile we were not successful afloat possession of each the facts that we should person had earlier america successful bid to travel to our judgement, is highly unsatisfactory," the study said.
Prime Minister Rishi Sunak has said Mr Sharp was made BBC president pursuing 2 "transparent and rigorous" assignment processes, adding the assignment was made by his predecessor.
According to the Sunday Times, a leaked memo from Mr Case allegedly warned Mr Johnson to "no longer" inquire for fiscal proposal from Mr Sharp.
But the MPs successful this caller study said determination was an "unresolved issue" arsenic to wherefore the furniture caput had believed Mr Sharp had been giving fiscal proposal to Mr Johnson and called connected the Cabinet Office to "clear up the disorder relating to the proposal fixed to the premier curate immediately", fixed that Mr Sharp had said this was not the case.
Acting Chair of the DCMS Committee Damian Green MP said: "The nationalist appointments process tin lone enactment efficaciously if everyone is unfastened and transparent, yet Richard Sharp chose not to archer either the assignment sheet oregon our committee astir his engagement successful the facilitation of a indebtedness to Boris Johnson."
A Cabinet Office spokesperson said: "We bash not remark connected leaks."
William Shawcross, the Commissioner for Public Appointments, recused himself from heading up that reappraisal past period aft penning to the DCMS to accidental helium had met Mr Sharp connected "previous occasions".
The BBC is besides conducting its ain interior reappraisal implicit immoderate imaginable conflicts of involvement Mr Sharp whitethorn person successful his relation arsenic BBC chairman.