In a significant development, the American investment behemoth KKR has terminated its relationship with Global Counsel, the lobbying firm established by Lord Mandelson. This decision comes in the wake of fresh disclosures concerning Lord Mandelson's connections to the convicted paedophile Jeffrey Epstein, as reported by Sky News.
Background of the Scandal
KKR, a major shareholder in companies such as Travelopia and Flora Food Group, had been a client of Global Counsel for an extended period. The firm's portfolio includes assets like John Laing, an infrastructure investor, and Flora Food Group, a spreads producer previously part of Unilever. The move to cut ties follows a series of revelations that have rocked the political and corporate worlds.
Recent Developments and Resignations
This exit by KKR occurs just days after similar actions by other high-profile entities. The Financial Times recently disclosed that Barclays had also severed its links with Global Counsel, and the Premier League has ceased to be a client. In a related turn of events, Benjamin Wegg-Prosser resigned as the chief executive of Global Counsel on Friday, with Lord Mandelson's stake in the firm being sold to Rebecca Park, who succeeds Mr Wegg-Prosser.
Lord Mandelson was dismissed from his role as Britain's ambassador to the United States last autumn, as the scandal surrounding his association with Mr Epstein intensified. The publication of millions of documents containing correspondence involving Mr Epstein last week led to Lord Mandelson being expelled from the Labour Party and resigning from the House of Lords. Additionally, on Friday, police conducted searches at two of his homes as part of an investigation into potential offences related to misconduct in a public office.
Corporate and Political Fallout
The decision by KKR to distance itself from Global Counsel underscores the growing corporate unease with associations linked to the Epstein scandal. As a global investment giant, KKR's move may signal a broader trend among corporations to reassess their lobbying partnerships in light of ethical considerations. The firm has declined to comment on the matter, reflecting the sensitive nature of the situation.
This incident highlights the ongoing repercussions of the Epstein case, which continues to impact figures across political and business spheres. The severing of ties by major corporations like KKR and Barclays suggests a heightened scrutiny of corporate governance and ethical standards in the wake of such scandals.
