Peter Mandelson's Lucrative Share Sale Before Firm's Collapse Over Epstein Links
Lord Peter Mandelson reportedly made more than £1.5 million by selling his shares in the advisory firm he co-founded, Global Counsel, with a significant portion of this sum coming in the days immediately before the company collapsed into administration. This collapse was directly linked to the scale of his friendship with the disgraced financier and convicted child abuser, Jeffrey Epstein.
Share Transfers and Financial Windfall
According to a Financial Times report, the disgraced peer transferred the majority of his shares, valued at up to £1.4 million, to family and friends in 2024. This transaction occurred before his controversial appointment as Britain's ambassador to the United States. As major clients, including Barclays, Vodafone, Tesco, and Klarna, severed ties with Global Counsel earlier this year due to the revelations about his Epstein association, the firm was compelled to buy out his remaining shares to eliminate any lingering connections.
Global Counsel publicly announced it had cut all ties with Mandelson, and his former aide, Benjamin Wegg-Prosser, resigned as CEO in a desperate bid to keep the company solvent. Despite these efforts, the firm entered administration just days later, resulting in the loss of nearly 100 jobs. This sequence of events meant Mandelson secured a six-figure financial gain, while the shares he sold to associates became worthless and employees received minimal or no severance packages.
Political Fallout and Diplomatic Scandal
This financial revelation adds another layer to the ongoing political scandal surrounding Mandelson's appointment. Last week, it was disclosed that he demanded a £580,000 pay-off after being dismissed from his ambassadorial role over his Epstein friendship. Prime Minister Sir Keir Starmer now faces intensified scrutiny over his decision to appoint Mandelson as a senior diplomat last year.
The Conservative Party has accused the government of having "forensically removed" the Prime Minister's political fingerprints from recently released files related to the appointment. Although these documents confirmed Sir Keir was warned about Mandelson's "particularly close" relationship with Epstein, they contained no record of the Prime Minister's response or his reasoning for pushing through the appointment despite it being flagged as a "reputational risk."
Company History and Client Exodus
Lord Mandelson co-founded Global Counsel with Benjamin Wegg-Prosser in 2010 following Labour's general election defeat. He stepped down from the board approximately two years ago. Wegg-Prosser, a former political adviser and director of strategic communications under Tony Blair, had previously worked as a director at a Russian media firm.
The advisory firm boasted an impressive client roster, including Palantir, GSK, Vodafone, OpenAI, TikTok, and the English Premier League. With offices in London, Berlin, Doha, and Washington DC, it announced it had ceased trading on February 20, making the majority of its 80 UK staff redundant.
Administration and Missing Documents
Administrators from Interpath stated that Global Counsel suffered a significant financial impact from a wave of clients cutting ties, leaving directors with no alternative but to appoint administrators. Will Wright, UK chief executive of Interpath and joint administrator, remarked, "While Global Counsel had grown over the past 15 years to become one of the UK's leading public affairs consultancies, the rapid and sudden loss of clients over recent weeks has had a monumental impact on the business."
In the House of Commons, senior Tory MP Alex Burghart highlighted that there were "many, many documents missing" from the released files, suggesting either a failure to follow due process in Mandelson's appointment or a failure to disclose all relevant documents, potentially constituting a contempt of Parliament.
Lord Mandelson has been approached for comment regarding these allegations and the financial transactions.
