Major Client Departures Deepen Crisis at Mandelson's Lobbying Firm
The crisis surrounding Peter Mandelson's public policy consultancy, Global Counsel, has escalated significantly this week as three additional blue-chip clients have terminated their relationships with the firm. This development comes amid growing revelations about the consultancy's historical connections to convicted sex trafficker Jeffrey Epstein.
Financial Giants and Retail Leader Sever Ties
City sources have confirmed that Phoenix Group, the pensions heavyweight, supermarket chain Tesco, and banking behemoth Bank of America have all ended their associations with the London-based lobbying shop. These departures represent the most substantial indication yet that Global Counsel is encountering severe difficulties in retaining its prestigious client portfolio.
The firm has experienced a steady stream of client defections since details emerged regarding both the extent of Mandelson's relationship with Epstein and the disgraced financier's role during the consultancy's formative years. These revelations surfaced through documents commonly referred to as the 'Epstein files'.
Damning Evidence from Department of Justice Files
Emails released by the US Department of Justice contained more than 800 references to Global Counsel, painting a troubling picture of Epstein's involvement. The correspondence demonstrated that the convicted sex offender played a pivotal role in:
- Facilitating connections between Mandelson and potential clients
- Providing strategic advice to the fledgling consultancy
- Maintaining regular communication with senior firm executives
The documents further revealed that former chief executive Benjamin Wegg-Prosser met with Epstein at his New York residence in 2010 while Epstein was under house arrest. The two maintained semi-regular correspondence, contradicting Global Counsel's previous assertions that it had never conducted business with the sex trafficker.
Leadership Changes Fail to Stem the Tide
Despite recent management restructuring, prominent clients continue to distance themselves from the embattled consultancy. Last week, Barclays became the first household name to publicly sever ties, citing the protracted process of disentangling Mandelson from his substantial 21 per cent ownership stake.
The political advisory firm confirmed on Friday that the final portion of the disgraced politician's shareholding had been completely divested. In the same announcement, Global Counsel revealed that co-founder Wegg-Prosser had resigned from his position as chief executive.
Rebecca Park, the firm's newly appointed chief executive, is understood to have acquired Mandelson's stake, which reportedly represented between 25 and 50 per cent of the company. This transfer occurred following her promotion by chair Archie Norman, according to official filings with Companies House.
Expanding List of Departing Clients
The client exodus extends beyond the three most recent departures. Sky News has reported that private equity giant KKR and pharmaceutical multinational GSK have also ended their relationships with the advisory firm.
A spokesperson for Phoenix Group confirmed that the FTSE 100 company had "ended its relationship" with Global Counsel. Bank of America and Tesco declined to comment on their decisions to terminate their associations with the lobbying shop.
Strategic Challenges and Contradictory Evidence
The accelerating client departures have placed Global Counsel's leadership in a challenging position as they attempt to persuade remaining UK-based clients not to abandon the firm. The consultancy has recently expanded its international footprint with offices in Brussels and the United Arab Emirates, plus staff in Washington and East Asia, where the repercussions of the scandal appear less pronounced.
The Department of Justice emails revealed particularly damaging information about Wegg-Prosser and Mandelson consulting Epstein regarding a potential deal between Global Counsel and boutique investment bank Lazard. This directly contradicted the firm's previous claims about having no dealings with the sex trafficker.
Additionally, the correspondence showed that Wegg-Prosser, who previously served as a Labour Party communications advisor under Tony Blair, shared with Epstein a statement in which Mandelson publicly distanced himself from the disgraced paedophile. This occurred despite other emails indicating that private conversations between the two men were at their most frequent during this period.
Global Counsel has declined to comment on the specific client relationships, maintaining its position of not discussing individual commercial arrangements.
