Tory Leader Demands Investigation into Prime Minister's Meeting with US Tech Giant
Conservative leader Kemi Badenoch has called for a formal inquiry into a meeting between Prime Minister Sir Keir Starmer and the controversial US data analytics firm Palantir. The meeting, which took place in February 2025 at Palantir's Washington DC offices, was arranged by Lord Peter Mandelson, who was serving as Britain's ambassador to the United States at the time.
Questions Over Transparency and Contract Award
The controversy centers on the fact that Lord Mandelson's lobbying firm, Global Counsel, counted Palantir among its clients. This connection has raised serious questions about transparency, particularly as Palantir subsequently secured a substantial £240 million data analytics contract with the Ministry of Defence. Downing Street has notably declined to clarify whether Sir Keir was aware of Palantir's client relationship with Global Counsel during his visit.
"The fact is the meetings were not minuted, so no one knows what was discussed, and then there was a direct grant of £240 million - not a tender, not a bid," Mrs Badenoch told the Financial Times. "That's something that needs to be looked at very, very closely. That's the issue." She emphasized that her party's concern was not with Palantir itself, but with the opaque circumstances surrounding the meeting and Lord Mandelson's involvement.
Defence Secretary Defends Contract Decision
Defence Secretary John Healey has firmly rejected any suggestion of impropriety, stating that Lord Mandelson played no role in the contract award. "Peter Mandelson has no influence on any MoD contracts. The Palantir decision was mine," Mr Healey told Bloomberg. He described the contract as a three-year extension for "data analytics capabilities supporting critical strategic, tactical and live operational decision making," praising Palantir's unique capabilities and track record.
A Palantir spokesperson characterized the Prime Minister's visit as "a typical government visit to a business, involving a media photocall." The meeting with CEO Alex Karp and UK chief Louis Mosley followed Sir Keir's talks with US President Donald Trump and was presented as an opportunity to engage with a significant investor in the UK. Palantir holds multiple government contracts across Whitehall, including with the NHS.
Mandelson's Ties to Epstein and Global Counsel Divestment
The situation is further complicated by Lord Mandelson's connections to the convicted paedophile financier Jeffrey Epstein. Newly released US documents, known as the 'Epstein files', have revealed additional details about their relationship. Notably, Palantir co-founder Peter Thiel is also named in these documents, having acknowledged meeting Epstein "a few times."
In response to these revelations, Global Counsel announced it had severed all ties with Lord Mandelson, completing the divestment of his shares and removing any influence he held. The firm, which he co-founded in 2010, has worked with clients including GSK, Vodafone, OpenAI, TikTok, and the Premier League. When appointed ambassador in 2025, Lord Mandelson had placed his shares in a blind trust.
Ongoing Police Investigation
Adding to the scrutiny, the Metropolitan Police has launched an investigation into allegations that Lord Mandelson sent market-sensitive information to Epstein while serving as Business Secretary during the financial crisis under Gordon Brown. Scotland Yard has indicated this probe into alleged misconduct in public office "would 'take some time'" following searches of his properties.
Lord Mandelson has consistently denied any illegal activity or personal gain from his association with Epstein, though he has expressed regret over the friendship. A Downing Street spokesman stated that ministers engage with various companies during international travel, emphasizing that all suppliers undergo rigorous due diligence based on operational needs, value for money, and security compliance.
