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Buckingham Palace household member has apologised and resigned after she repeatedly asked a black British charity boss where she was “really from”.
Ngozi Fulani, founder of charity Sistah Space, was questioned by Lady Susan Hussey at the charity event in the palace.
Ms Fulani, said she was “totally stunned”.
The palace said the comments were “unacceptable and deeply regrettable”.
Lady Susan was lady-in-waiting to the late Queen and is the Prince of Wales’s godmother.
An eyewitness to the conversation, Mandu Reid, told the BBC Lady Susan’s questions had been “offensive, racist and unwelcoming”.
Ms Reid says she had a “sense of incredulity” about the exchange in which Ms Fulani was “interrogated” about where she was from – even though she had already explained she was born and lived in the UK.
Ms Reid later confirmed to the BBC that it was Lady Susan who had made the comments, having seen her name badge.
Neither the charity nor Buckingham Palace named the royal aide.
In its statement, Buckingham Palace said: “We take this incident extremely seriously and have investigated immediately to establish the full details.
“In this instance, unacceptable and deeply regrettable comments have been made. We have reached out to Ngozi Fulani on this matter, and are inviting her to discuss all elements of her experience in person if she wishes.
“In the meantime, the individual concerned would like to express her profound apologies for the hurt caused and has stepped aside from her honorary role with immediate effect. All members of the household are being reminded of the diversity and inclusivity policies which they are required to uphold at all times.”
Ms Fulani is the founder of the London-based charity Sistah Space, which supports women of African and Caribbean heritage across the UK who have faced domestic and sexual abuse.
Along with 300 guests, she had been invited to a high-profile reception at the Palace on Tuesday, where the Queen Consort, Camilla, had warned of a “global pandemic of violence against women”.
But after the event, Ms Fulani described on Twitter how the royal aide moved her hair aside to see her name badge, and then challenged her to explain where she was from.
She recounted how she said: “We’re based in Hackney,” and the aide replied: “No, what part of Africa are you from?”
She said: “I don’t know, they didn’t leave any records”, and the palace aide responded: “Well you must know where you’re from, I spent time in France. Where are you from?”
“Here, UK”
“No, but what nationality are you?”
“I am born here and am British.”
“No, but where do you really come from, where do your people come from?”
Ms Fulani said on Twitter: “It was such a shock to me and the other two women that we were stunned [into] temporary silence.”
Also part of the conversation was Ms Reid, leader of the Women’s Equality Party.
She said that members of the Royal Household were circulating at the reception and making “chit chat” – but she said it became a “really unpleasant interaction”, when despite Ms Fulani’s replies there was an insistent questioning about her background.
Ms Reid said they were “stunned into silence” afterwards and says that Ms Fulani should receive an apology and those working for the palace should receive training.