Lobbying Firm Co-Founded by Mandelson on the Brink of Collapse
Global Counsel, the lobbying firm co-founded by Peter Mandelson, is preparing to enter administration this Friday. The move comes after a series of leading clients severed ties with the company due to revelations linking it to convicted sex offender Jeffrey Epstein.
Key Developments
– Staff were informed that the decision to enter administration became inevitable following client departures.
– Lord Mandelson, who resigned from the board in 2024, was a shareholder until earlier this month. His co-founder, Benjamin Wegg-Prosser, stepped down as CEO on February 6.
– Sources claim the firm’s challenges stem from the Mandelson legacy, not any actions taken by current staff.
– Global Counsel has cautioned that there will be a significant number of redundancies when administrators take control.
Background of Global Counsel
– Established by Lord Mandelson and Wegg-Prosser after Labour’s loss in the 2010 general election.
– Gained a reputation as a powerful lobbying firm in Westminster, representing high-profile clients such as Shell, TikTok, and Barclays.
– Employs over 100 individuals and operates in cities including Berlin, Brussels, Singapore, Washington DC, and Doha.
Impact of the Epstein Links
The firm’s future has been jeopardized by documents emerging from the Epstein files, which highlighted Lord Mandelson’s connections to the disgraced financier. In a statement this Thursday, Global Counsel noted that many clients had remained loyal in recent weeks. However, the persistent media scrutiny surrounding Mandelson has presented significant challenges for the business.
– The administrators have indicated that if any ongoing client services are feasible, they will be limited in scope.
– The files also revealed a previously undisclosed meeting between Wegg-Prosser and Epstein in 2010, two years post-Epstein’s conviction for solicitation charges. Epstein died in 2019 while awaiting trial on sex trafficking.
Mandelson’s Political Legacy
Lord Mandelson is recognized as a pivotal figure in the New Labour movement, which emerged victorious under Tony Blair in 1997. He held various ministerial roles under Blair and Gordon Brown and served as the European Commissioner for Trade from 2004 until 2008. Appointed as the US ambassador in December 2024, he was dismissed in September once his relationship with Epstein became public.
Recent Developments
Earlier this month, police searched two properties linked to Mandelson amid allegations of misconduct in public office. While Mandelson has been reached for comment, he has not publicly responded. Sources indicate he believes he has acted lawfully and without financial motivation.
In summary, the future of Global Counsel remains uncertain as the firm grapples with the consequences of the Mandelson connection amid a looming administrative crisis.