Global Counsel loses more clients as Epstein scandal deepens
The crisis engulfing the lobbying firm founded by Peter Mandelson, Global Counsel, deepened on Tuesday, after three more of its blue-chip clients parted ways with the advisory over its links to co-founder Mandelson and the convicted sex trafficker Jeffrey Epstein.
City PM understands that pensions giant Phoenix, Tesco and Bank of America have all severed ties with the London-headquartered lobbying shop, in the clearest sign yet it is struggling to convince its ranks of high-profile clients to remain on its books.
Global Counsel has been rocked by an exodus of its largest clients since the depth of Mandelson’s relationship with Epstein and the role the sex trafficker played in his lobby firm’s infancy emerged as part of the so-called ‘Epstein files’.
Emails released by the US Department of Justice contained over 800 mentions of the firm, and revealed the convicted sex offender played an instrumental role in helping connect Mandelson with potential clients and advising on strategy. They also showed its former chief executive, Benjamin Wegg-Prosser, met with Epstein at his New York home in 2010 while under house arrest and corresponded with him semi-regularly.
People familiar with decision-making at the three firms said they had decided to end their relationship in the wake of the revelations.
Last week, Barclays became the first household name to sever ties with the firm, citing its slow progress extricating Mandelson from his 21 per cent stake.
The political advisory confirmed on Friday that the last of the disgraced politician’s shareholding had been fully divested in an announcement in which it also said co-founder Wegg-Prosser had quit as chief executive. Rebecca Park, the consultancy’s new boss, is understood to have acquired Mandelson’s stake, which was between 25 and 50 per cent of the firm after being promoted by chair Archie Norman, according to filings on Companies House.
Despite the revamped leadership, household names have continued to distance themselves from Global Counsel. As well as Bank of America, Tesco and Phoenix, Sky News revealed that buyout giant KKR has also parted ways with the advisory shop, along with pharmaceutical giant GSK.
A spokesman for Phoenix confirmed that the FTSE 100 giant had “ended its relationship”. Bank of America and Tesco did not respond to requests for comment.
Global Counsel struggles to keep key clients
The accelerating departures have left Global Counsel top brass locked in a battle to convince UK-based clients not to abandon the firm. Recently it has bolstered its international presence with offices in Brussels and the UAE and staff in Washington and east Asia, where the fallout from the saga is less acute.
The Department of Justice emails also revealed Wegg-Prosser and Mandelson consulted Epstein on a potential deal between Global Counsel and boutique investment bank Lazard, contradicting previous claims from the firm that it had “never had dealings” with the sex trafficker.
Wegg-Prosser, a Labour party spin doctor under Tony Blair, was also found to have shared with Epstein a statement in which Mandelson distanced himself from the disgraced paedophile despite other emails showing private conversations between the pair had been at their height.
Global Counsel declined to comment, saying it did not comment on individual client relationships.