Global Counsel's Future in Jeopardy Following Epstein Email Revelations
The once-dominant lobbying powerhouse Global Counsel, co-founded by former Labour minister Peter Mandelson, now faces an existential crisis that has sent shockwaves through London's public affairs sector. The firm's carefully cultivated reputation lies in tatters after a City AM investigation revealed extensive connections to convicted sex offender Jeffrey Epstein, prompting a mass client exodus and leadership upheaval.
Parallels with Bell Pottinger's Infamous Collapse
Industry veterans are drawing uncomfortable comparisons with the spectacular downfall of Bell Pottinger, whose 2017 collapse remains a cautionary tale in public relations circles. That agency's demise followed revelations about its work for South Africa's Gupta family, culminating in Lord Bell's disastrous Newsnight appearance that sealed its fate. "It's all looking a bit Bell Pottinger," remarked one veteran lobbyist, highlighting the similar trajectory of reputational damage now engulfing Global Counsel.
The parallels extend beyond mere crisis management failures. Both agencies were founded by politically connected peers with storied careers in communications, and both attracted controversial client rosters that ultimately contributed to their undoing. Where Bell Pottinger famously argued that everyone deserved representation in the court of public opinion, Global Counsel built its business advising oligarchs, state-backed Russian oil firms, and defence companies with Chinese government ties.
Epstein's Deep Involvement Revealed
The scale of Epstein's involvement with Global Counsel has stunned industry observers. The US Department of Justice's email release mentioned the consultancy more than 800 times, with the overwhelming majority being personal emails from Mandelson to the convicted sex trafficker. More damaging revelations show Epstein played an instrumental role in the agency's early development, combing through pipeline business and helping Mandelson source potential clients during his house arrest in 2010.
Chief executive Benjamin Wegg-Prosser's connections have also come under scrutiny, with emails revealing he met Epstein in his New York townhouse to discuss Global Counsel's strategy. Another exchange showed Wegg-Prosser sending Epstein a statement apparently from Mandelson's spokesperson, attempting to distance the former Labour heavyweight from the sex offender while their private relationship continued.
Client Exodus and Leadership Turmoil
The revelations have triggered a stampede for the exits among Global Counsel's blue-chip client base. Barclays severed ties first, citing frustration over the firm's handling of Mandelson's divestment, with the former minister holding a 21 percent stake until recently. Pharmaceutical giant GSK, the Premier League, Vodafone, and private equity behemoth KKR have all followed suit, creating a financial crisis for the consultancy.
Leadership changes have followed the client departures. Wegg-Prosser stepped down as chief executive last Friday, with chair Archie Norman announcing the move in an email to clients. Rebecca Park, a seasoned financial lobbyist instrumental in establishing banking industry body UK Finance, has been appointed as the new chief executive in an attempt to stabilise the firm.
Industry-Wide Reckoning on Lobbying Standards
The scandal has sparked broader concerns about lobbying standards across the public affairs industry. Unlike most UK-based agencies, Global Counsel never joined the Public Relations and Communications Association (PRCA), meaning it operated outside the industry body's code of conduct. PRCA chief executive Sarah Waddington plans to write to every head of public affairs in the country, urging them to avoid consultancies that refuse to sign up to ethical standards.
"Lobbying plays a vital role in the democratic process when carried out properly," Waddington states in her draft letter, obtained by City AM. "At a time when public confidence matters more than ever, we encourage you to make sure that your consultancies are meeting the highest ethical standards."
Former Prime Minister Gordon Brown has added his voice to calls for reform, using a Today Programme appearance to demand a major overhaul of lobbying legislation and rail against "systematic abuse of power by lobbyists."
Fresh Revelations Compound the Crisis
Just as Global Counsel attempts damage control, new revelations continue to emerge. City AM can reveal that director Maree Glass helped organise a Downing Street tour for an Epstein associate years after his 2008 conviction for soliciting prostitution from a minor. Glass, who served as Mandelson's personal assistant at the Department for Business, liaised with Epstein's personal assistant about the visit, though sources claim it was arranged before Global Counsel's 2010 establishment.
Survival Prospects Questioned
Industry figures question how a firm built on political connections can survive when those very connections have become toxic. "The brand is now toxic," one senior PR executive told City AM. "Anyone in and around the government will be very wary of contact. There's not much point having a lobbying firm that no one will talk to."
Another executive highlighted the fundamental problem: "No clients want to pay an agency that might risk rather than enhance their reputation." While sources close to Global Counsel insist the business remains on firm footing, pointing to diversification efforts and new leadership, the shadow of Bell Pottinger's six-month decline before administration looms large over Westminster's lobbying community.
