Major Banks and Corporations Distance Themselves from Mandelson's Lobbying Firm
In a significant development, Barclays has reportedly severed its ties with Global Counsel, the influential lobbying firm co-founded by former Labour minister Peter Mandelson. This decisive move comes amid intense scrutiny following the explosive revelations regarding Mandelson's relationship with the late convicted sex offender Jeffrey Epstein. The scandal has triggered a widespread corporate and political backlash, with Vodafone also announcing a comprehensive review of its public affairs contract with the firm.
Corporate Exodus and Contract Reviews
According to reports from the Financial Times, Barclays terminated its association with Global Counsel due to mounting frustration over the firm's handling of Mandelson's remaining financial stake. A person close to the situation indicated that the bank's decision was driven by the escalating controversy and the desire to distance itself from the ongoing political firestorm. Simultaneously, Vodafone confirmed that its current one-year contract with Global Counsel is set to expire in March, and no decisions have been made regarding its renewal. Both Barclays and Vodafone were approached for official comment on these developments.
Political Fallout and Resignations
The crisis deepened when newly released emails from a US Department of Justice investigation revealed the extent of Mandelson's connections with Epstein. These documents suggested that Mandelson regularly shared sensitive information about his efforts to establish Global Counsel with Epstein, including details about his business dealings, such as seeking the chairmanship at mining giant Glencore. Although Mandelson did not secure that position, Global Counsel later won business providing strategic advice to Glencore. In response to the scandal, Mandelson resigned from the Labour party on Sunday, following his dismissal as ambassador to the US in September after the emails emerged.
Further Allegations and Client Scrutiny
The Epstein files also implicated Global Counsel's chief executive and co-founder, Benjamin Wegg-Prosser, who reportedly met Epstein in person at his residence in 2010 and exchanged emails with him on at least two occasions. This has placed the firm under additional pressure, with other clients like Rokos Capital Management, a £16 billion London hedge fund, terminating talks with Mandelson over an advisory role after the government leak allegations surfaced. Furthermore, Global Counsel's client roster includes Palantir, a military and security technology firm with connections to the Trump administration, raising questions about Mandelson's role during a visit by UK Prime Minister Keir Starmer to Palantir's showroom in Washington DC in February 2025.
Prime Minister's Response and Apology
Prime Minister Keir Starmer has publicly stated that Mandelson lied to him about the depth of his ties to Epstein. In a move to address the growing political crisis, Starmer apologised to Epstein's victims on Thursday for appointing Mandelson to the ambassador role, acknowledging that he had believed Mandelson's falsehoods. This apology underscores the severe implications of the scandal, which has not only damaged Mandelson's reputation but also sparked calls for greater transparency in government contracts and lobbying practices. As the investigation continues, the future of Global Counsel and its remaining clients hangs in the balance, with further corporate withdrawals likely.
