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BPP Communications Ltd., which did business as Bell Pottinger Private, was a British multinational
public relations Public relations (PR) is the practice of managing and disseminating information from an individual or an organization (such as a business, government agency, or a nonprofit organization) to the public in order to influence their perception. Pu ...
,
reputation management Reputation management, refers to the Social influence, influencing, controlling, enhancing, or concealing of an individual's or group's reputation. It is a marketing technique used to modify a person's or a company's reputation in a positive way. ...
and marketing company headquartered in London, United Kingdom. On 12 September 2017 it went into
administration Administration may refer to: Management of organizations * Management, the act of directing people towards accomplishing a goal: the process of dealing with or controlling things or people. ** Administrative assistant, traditionally known as a se ...
(bankruptcy) as a consequence of a scandal caused by its activities in South Africa. Bell Pottinger offered services such as
lobbying Lobbying is a form of advocacy, which lawfully attempts to directly influence legislators or government officials, such as regulatory agency, regulatory agencies or judiciary. Lobbying involves direct, face-to-face contact and is carried out by va ...
, speech writing, reputation management, and search engine optimisation to clients including companies, governments and rich individuals. It was the largest UK-based public relations consultancy measured by 2010 fee income. Lord Bell, who advised
Margaret Thatcher Margaret Hilda Thatcher, Baroness Thatcher (; 13 October 19258 April 2013), was a British stateswoman who served as Prime Minister of the United Kingdom from 1979 to 1990 and Leader of the Conservative Party (UK), Leader of th ...
on media matters, was a co-founder of Bell Pottinger, which, until July 2012, was a wholly owned subsidiary of Chime Communications plc. In June 2012, Lord Bell and Bell Pottinger CEO James Henderson completed a £19.6 million
management buyout A management buyout (MBO) is a form of acquisition in which a company's existing managers acquire a large part, or all, of the company, whether from a parent company or individual. Management- and/or leveraged buyouts became noted phenomena of 19 ...
from Chime, with Chime retaining a 25% stake in the business. The firm was described as having "the most controversial client list" in the PR industry. It was criticised numerous times for conflict-of-interest edits that the company made on Wikipedia pages that involved or were about their clients. According to the
Bureau of Investigative Journalism The Bureau of Investigative Journalism, typically abbreviated to TBIJ or "the Bureau", is a nonprofit news organisation based in London that was founded in 2010 to pursue "public interest" investigations. The Bureau works with publishers and bro ...
, the company was hired by
the Pentagon The Pentagon is the headquarters building of the United States Department of Defense, in Arlington County, Virginia, across the Potomac River from Washington, D.C. The building was constructed on an accelerated schedule during World War II. As ...
to work in Iraq, making fake terror and news-style videos, targeting
al-Qaeda , image = Flag of Jihad.svg , caption = Jihadist flag, Flag used by various al-Qaeda factions , founder = Osama bin Laden{{Assassinated, Killing of Osama bin Laden , leaders = {{Plainlist, * Osama bin Lad ...
, for the reported sum of $540 million. During 2016 and 2017, a sustained "dirty campaign" by the firm came to light, in which it played on racial animosity in South Africa, including the creation of
fake news Fake news or information disorder is false or misleading information (misinformation, disinformation, propaganda, and hoaxes) claiming the aesthetics and legitimacy of news. Fake news often has the aim of damaging the reputation of a person ...
, to benefit its client Oakbay Investments, which is controlled by the controversial and influential Gupta family in South Africa and had strong ties to the then President Zuma's government. In 2017, the resulting scandal saw the firm disgraced and expelled from its professional body. Chief executive and largest shareholder James Henderson departed, lead partner Victoria Geoghegan was fired, and Chime, its second-largest shareholder, wrote off its investment and departed. There was an exodus of major clients and other senior staff, with the result that many onlookers thought the UK firm was highly likely to close, while operations in the Middle and Far East could be sold to new owners. On 12 September 2017, it was announced that Bell Pottinger had entered
administration Administration may refer to: Management of organizations * Management, the act of directing people towards accomplishing a goal: the process of dealing with or controlling things or people. ** Administrative assistant, traditionally known as a se ...
, with some staff immediately being made redundant. A September 2017 review by law firm Herbert Smith FreehillsReview by Herbert Smith Freehills, published September 2017
/ref> concluded that the firm had breached ethical standards, lacked appropriate policies for managing controversial accounts, and had brought the PR industry into disrepute, and the
Public Relations and Communications Association The Public Relations and Communications Association (PRCA) is a trade association for the public relations sector in the United Kingdom. The association lobbies on behalf of its member companies and also provides a forum for sharing information. ...
(PRCA) said the firm had received a "damning indictment", having breached four of its conduct charter clauses. The firm had previously claimed that the allegations were purely a smear campaign having no truth to them. Following the company's collapse owing creditors £14 million, administrator BDO was reported to be pursuing around 40 former Bell Pottinger partners to repay around £4 million, with Henderson asked to repay £400,000. In April 2019, BDO said it could bring lawsuits against former Bell Pottinger partners for their involvement in work for Oakbay, which breached partnership agreements. Former Bell Pottinger partners also faced potential disqualification from acting as company directors by the
Insolvency Service The Insolvency Service is an executive agency of the Department for Business and Trade with headquarters in London. It has around 1,700 staff, operating from 22 locations across the UK. The Insolvency Service administers compulsory company liq ...
.


History

Bell Pottinger's origins go back to 1985, when Timothy Bell and
Frank Lowe Frank Lowe (June 24, 1943 – September 19, 2003) was an American avant-garde jazz saxophonist and composer. Biography Born in Memphis, Tennessee, Lowe took up the tenor saxophone at the age of 12. As an adult he moved to San Francisco, where h ...
founded Lowe Bell as a subsidiary of Lowe Howard-Spink. Bell and Piers Pottinger bought out Lowe Bell in 1989, and it was subsequently floated in 1994 as Chime Communications plc but retained the name Lowe Bell on some of its subsidiary companies. In 1998, the subsidiaries were renamed as Bell Pottinger after Frank Lowe demanded that his name be removed. In 2000 the Bell Pottinger Group acquired Harvard Public Relations and QBO, which was renamed Bell Pottinger Public Relations. In 2001 Bell Pottinger acquired MMK in Germany and also The Smart Company, which was merged into Corporate Citizenship when the Group acquired it in 2007. In 2003 Resonate, a consumer
public relations Public relations (PR) is the practice of managing and disseminating information from an individual or an organization (such as a business, government agency, or a nonprofit organization) to the public in order to influence their perception. Pu ...
company was set up. In 2004 Bell Pottinger Communications USA was launched and in 2005 Bell Pottinger Middle East was launched with offices in
Bahrain Bahrain, officially the Kingdom of Bahrain, is an island country in West Asia. Situated on the Persian Gulf, it comprises a small archipelago of 50 natural islands and an additional 33 artificial islands, centered on Bahrain Island, which mak ...
in 2009. In 2009 Bell Pottinger Change & Internal Communications was launched and Ptarmigan in Leeds was acquired by the Bell Pottinger Group. In 2010 Pelham Public Relations, a financial public relations business founded by James Henderson, merged with Bell Pottinger Corporate and Financial. In 2011, the merged company was ranked 14th amongst global, and 8th amongst UK, M&A public relations advisers by Mergermarket, the ''
Financial Times The ''Financial Times'' (''FT'') is a British daily newspaper printed in broadsheet and also published digitally that focuses on business and economic Current affairs (news format), current affairs. Based in London, the paper is owned by a Jap ...
''-owned mergers and acquisitions data company. The company's M&A work included acting for Northumbrian Water Group in its agreed acquisition by Cheung Kong Infrastructure Holdings, for
Richemont Compagnie Financière Richemont S.A., commonly known as Richemont, is a Switzerland-based luxury goods holding company founded in 1988 by South African businessman Johann Rupert. Through its various subsidiaries, Richemont produces and sells jew ...
in its acquisition of Net a Porter, Qatar Investment Authority in its acquisition of
Harrods Harrods is a Listed building, Grade II listed luxury department store on Brompton Road in Knightsbridge, London, England. It was designed by C. W. Stephens for Charles Digby Harrod, and opened in 1905; it replaced the first store on the ground ...
and for
Universal Music Universal Music Group N.V. (often abbreviated as UMG and referred to as Universal Music Group or Universal Music) is a Dutch– American multinational music corporation under Dutch law. UMG's corporate headquarters are located in Hilversum ...
in its acquisition of
EMI EMI Group Limited (formerly EMI Group plc until 2007; originally an initialism for Electric and Musical Industries, also referred to as EMI Records or simply EMI) was a British transnational conglomerate founded in March 1931 in London. At t ...
Recorded Music. In 2012 it was the second biggest financial
public relations Public relations (PR) is the practice of managing and disseminating information from an individual or an organization (such as a business, government agency, or a nonprofit organization) to the public in order to influence their perception. Pu ...
company in the UK by volume of stock market listed clients, according to the Morningstar (formerly Hemscott) financial data group. In May 2012, it was reported that Lord Bell had agreed a £20 million deal to buy most of the Bell Pottinger branded PR businesses from Chime, with Chime retaining a 25% stake in the venture and a seat on the board. The MBO was completed on 30 June 2012 with BPP Communications (Bell Pottinger Private) trading as an independent business from 1 July 2012. Chime retained the Good Relations group of PR businesses, including Harvard, Corporate Citizenship, MMK and Ptarmigan, and some UK regional offices formerly branded as Bell Pottinger were rebranded to Good Relations. Bell Pottinger Private acquired Centreground Political Communications Limited, founded by former Tony Blair adviser Darren Murphy, in June 2014. In September that year, the company launched a new service aimed at the luxury sector. In August 2016, it was announced that Lord Bell was quitting as Bell Pottinger chairman to set up an advisory firm, Sans Frontières. He retained a 7% stake in Bell Pottinger. He later (July 2017) claimed that he had left the company partly due to concerns over its "smelly" activities for a South African client, Oakbay Investments. The Bell Pottinger Group had been ranked number one in the ''
PRWeek ''PRWeek'' is a trade magazine and news website for the public relations and wider communications industry. It is published by Haymarket Media Group. History ''PRWeek'' was originally launched as a private venture in 1984 and was acquired b ...
'' and ''Marketing'' magazine league tables.


Operations

Bell Pottinger had offices in London, North America, the Middle East and south-east Asia. It offered consumer, corporate and financial, healthcare, technology, industrial, public affairs,
public sector The public sector, also called the state sector, is the part of the economy composed of both public services and public enterprises. Public sectors include the public goods and governmental services such as the military, law enforcement, pu ...
,
corporate social responsibility Corporate social responsibility (CSR) or corporate social impact is a form of international private business industry self-regulation, self-regulation which aims to contribute to societal goals of a philanthropy, philanthropic, activist, or chari ...
,
internal communication Internal communications (IC) is the function responsible for effective communications among participants within an organization. The scope of the function varies by organization and practitioner, from producing and delivering messages and campaigns ...
, crisis and issues management services. The Bell Pottinger Private Group included Pelham Bell Pottinger, Bell Pottinger Public Relations, Bell Pottinger Sans Frontières, Bell Pottinger Public Affairs, Bell Pottinger Middle East (offices in Dubai and Abu Dhabi), and Bell Pottinger USA. Bell Pottinger donated £11,900 to the Conservative Party in the twelve months to September 2011. In 2012, the company planned to enable clients to attempt to influence European Union legislative processes by organising participation in "
European Citizens' Initiative The European Citizens' Initiative (ECI) is a European Union (EU) mechanism aimed at increasing direct democracy by enabling "EU citizens to participate directly in the development of EU policies", introduced with the Treaty of Lisbon in 2007. T ...
s", a mechanism intended for grassroots involvement.


Criticism


PR for countries with human rights violations

On 6 December 2011, the British national newspaper ''
The Independent ''The Independent'' is a British online newspaper. It was established in 1986 as a national morning printed paper. Nicknamed the ''Indy'', it began as a broadsheet and changed to tabloid format in 2003. The last printed edition was publis ...
'' ran a front-page story based on covert filming by the
Bureau of Investigative Journalism The Bureau of Investigative Journalism, typically abbreviated to TBIJ or "the Bureau", is a nonprofit news organisation based in London that was founded in 2010 to pursue "public interest" investigations. The Bureau works with publishers and bro ...
which the paper claimed revealed executives from Bell Pottinger boasting of ways in which they performed reputation laundering for countries accused of human rights violations. Posing as representatives of a fake investment body linked to the Uzbekistan government, the journalists had filmed a presentation at which Bell Pottinger executives explained techniques used on behalf of their clients, which at one point Tim Collins of Bell Pottinger – who has close connections with Prime Minister
David Cameron David William Donald Cameron, Baron Cameron of Chipping Norton (born 9 October 1966) is a British politician who served as Prime Minister of the United Kingdom from 2010 to 2016. Until 2015, he led the first coalition government in the UK s ...
, Edward Llewellyn, and Steve Hilton – referred to as "dark arts". It was also reported that senior executives at Bell Pottinger told the undercover reporters that they had written a key speech given by the Sri Lankan President to the United Nations, in which he had described military action against Tamil Tiger separatists as "humanitarian". During a meeting with reporters, David Wilson – the chairman of Bell Pottinger Public Relations – had stated: "We had a team working in the President's office. We wrote the President's speech to the UN last year which was very well received... it went a long way to taking the country where it needed to go". One of the techniques specifically mentioned by Collins was the use of
search engine optimization Search engine optimization (SEO) is the process of improving the quality and quantity of Web traffic, website traffic to a website or a web page from web search engine, search engines. SEO targets unpaid search traffic (usually referred to as ...
to alter Google results. He said:
And where we want to get to – and this will take time, this is where David's team are magical – is you get to the point where even if they type in "Uzbek child labour" or "Uzbek human rights violation", some of the first results that come up are sites talking about what you guys are doing to address and improve that, not just the critical voices saying how terrible this all is.


Connections with the British government

In a covert recording, the executives claimed to have access to or relationships with numerous senior British politicians, including Prime Minister David Cameron; the Chancellor of the Exchequer,
George Osborne George Gideon Oliver Osborne (born 23 May 1971) is a British retired politician and newspaper editor who served as Chancellor of the Exchequer from 2010 to 2016 and as First Secretary of State from 2015 to 2016 in the Cameron government. A ...
; David Cameron's former Director of Strategy, Steve Hilton;
James Arbuthnot James Norwich Arbuthnot, Baron Arbuthnot of Edrom, (born 4 August 1952), is a British Conservative Party (UK), Conservative Party politician. He was Member of Parliament (United Kingdom), Member of Parliament (MP) for Wanstead and Woodford ...
(chair of the
Defence Select Committee The Defence Select Committee is one of the Select Committees of the House of Commons of the United Kingdom, having been established in 1979. It examines the expenditure, administration, and policy of the Ministry of Defence and its associated pu ...
); and MP
Rory Stewart Roderick James Nugent Stewart (born 3 January 1973) is a British academic, broadcaster, writer, and former diplomat and politician. He has taught at Harvard University and at Yale University. He currently teaches and co-directs the Brady-Jo ...
. Collins also claimed that Bell Pottinger had been involved in David Cameron raising a matter with the Chinese government on behalf of a Bell Pottinger client, saying:
…Just as a final example just for you... I'm not saying we can always do this but just as an example of what we can sometimes do. Three weeks ago, we were rung up at 2.30 on a Friday afternoon by one of our clients,
Dyson Dyson may refer to: * Dyson (surname), people with the surname Dyson * Dyson (company), a Singaporean multinational home appliances company founded by James Dyson * Dyson (crater), a crater on the Moon * Dyson (operating system), a Unix general- ...
... They rang up and they said look, we've got a huge issue, and that is that a lot of our products are being completely ripped off in China, to the point where they're not just completely duplicating the product... (The) Chinese government won't take it seriously, it's half past two on a Friday afternoon. On Saturday, the Chinese Prime Minister is coming in for a UK visit – can you please get the UK to raise it?...And I'm pleased to say that on the Saturday, David Cameron raised it with the Chinese Prime Minister and showed him the photos of the products. I'm not saying we can do that all the time but that is an illustration of what, if you have the right message – David Cameron, yes he was doing it for Dyson, yes he was doing it because we asked him to do it, he was doing this also because he thought this was also in the UK wider national interest. This was something where there would be a UK proper interest. But in terms of very fast turnaround and getting things done right at the top of government, if you've got the right message, yes, we can do it.
The allegations of Bell Pottinger directly influencing the British Prime Minister and other senior Government figures on behalf of private sector clients led to calls from the opposition Labour Party for the Cabinet Secretary Sir
Gus O'Donnell Augustine Thomas O'Donnell, Baron O'Donnell, (born 1 October 1952) is a former British senior civil servant and economist, who between 2005 and 2011 (under three Prime Ministers) served as the Cabinet Secretary, the highest official in the Br ...
to launch an investigation, and from the Alliance for Lobbying Transparency for the immediate introduction of a statutory register of lobbyists.


Editing Wikipedia

In December 2011, it came under public scrutiny after managers were secretly recorded talking to fake representatives of the Uzbek government and violating Wikipedia rules by removing negative information and replacing it with positive spin. On 8 December 2011, the UK national newspaper ''
The Daily Telegraph ''The Daily Telegraph'', known online and elsewhere as ''The Telegraph'', is a British daily broadsheet conservative newspaper published in London by Telegraph Media Group and distributed in the United Kingdom and internationally. It was found ...
'' reported that some Wikipedia user accounts allegedly linked to Bell Pottinger had been suspended. Its report stated that "Further claims published in the ''Independent'' today suggested that the company made hundreds of alterations to Wikipedia entries about its clients in the last year, some of them adding favourable comments and others removing negative comments. Alterations were said to have been made by a user – traced to a Bell Pottinger computer – who used the pseudonym 'Biggleswiki. Among the articles edited by "Biggleswiki" was the Wikipedia entry for Dahabshiil, a funds transfer firm. On the same day, ''The Independent'' reported that Wikipedia co-founder
Jimmy Wales Jimmy Donal Wales (born August 7, 1966), also known as Jimbo Wales, is an American List of Internet entrepreneurs, Internet entrepreneur and former Trader (finance), financial trader. He is a Founders of Wikipedia, co-founder of the non-profi ...
had described Bell Pottinger as "ethically blind", after it had admitted altering Wikipedia pages relating to its clients. On 9 December 2011, ''The Independent'' published further allegations, including that Bell Pottinger had targeted the Wikipedia entry of
Gordon Brown James Gordon Brown (born 20 February 1951) is a British politician who served as Prime Minister of the United Kingdom and Leader of the Labour Party (UK), Leader of the Labour Party from 2007 to 2010. Previously, he was Chancellor of the Ex ...
's sister-in-law, the environmental campaigner Clare Rewcastle Brown, and the South African arms manufacturer the Paramount Group. On the same day, it was reported that a parliamentary investigation into lobbying firms, including Bell Pottinger, and their links with ministers, would be launched, and that an internal investigation had begun at Bell Pottinger. In response to the articles published on 6 to 9 December 2011, Bell Pottinger lodged a complaint to the
Press Complaints Commission The Press Complaints Commission (PCC) was a voluntary regulatory body for British printed newspapers and magazines, consisting of representatives of the major publishers. The PCC closed on Monday 8 September 2014, and was replaced by the Ind ...
(PCC) against the ''Independent'', claiming that the information about its activities published by the newspaper had been obtained through subterfuge and was not of sufficient public interest to merit the Bureau of Investigative Journalism's undercover investigation.Press Complaints Commission (July 2012)
"PCC rejects complaint from Bell Pottinger following undercover Independent articles"
Press Complaints Commission, 26 July 2012. Retrieved 11 July 2014.
However, in its ruling, the PCC agreed with the Bureau that there was a "broad public interest in exploring the relationship between lobbying and politics" and that it would not have been possible to obtain details of the techniques used by the lobbying company through other means. The Bureau of Investigative Journalism's editor, Iain Overton, welcomed the PCC's ruling, saying: "During our undercover filming Bell Pottinger executives explained to us that one of the PR tools they used to attack news stories was to make an official complaint to the PCC. True to its word, Bell Pottinger went on the offensive following our exposé claiming foul". In June 2014, Bell Pottinger was a notable absentee from a group of major agencies which publicly pledged to abide by Wikipedia's rules and end the practice of amending their clients' Wikipedia pages.


Fake terrorism-related media: propaganda campaign for US Department of Defense

It was revealed on 2 October 2016 that the
United States Department of Defense The United States Department of Defense (DoD, USDOD, or DOD) is an United States federal executive departments, executive department of the federal government of the United States, U.S. federal government charged with coordinating and superv ...
(DoD) paid Bell Pottinger $540 million to create fake terrorist videos, fake news articles for Arab news channels and propaganda videos. An investigation by the
Bureau of Investigative Journalism The Bureau of Investigative Journalism, typically abbreviated to TBIJ or "the Bureau", is a nonprofit news organisation based in London that was founded in 2010 to pursue "public interest" investigations. The Bureau works with publishers and bro ...
revealed the details of the multimillion-pound operation. Bell Pottinger is understood to have been funded some $540 million from the DoD for five contracts from May 2007 to December 2011, according to ''
The Times ''The Times'' is a British Newspaper#Daily, daily Newspaper#National, national newspaper based in London. It began in 1785 under the title ''The Daily Universal Register'', adopting its modern name on 1 January 1788. ''The Times'' and its si ...
'' and the Bureau of Investigative Journalism. Its work during the Iraq War came under the U.S.'s Information Operations Task Force and Joint Psychological Operations Task Force. As part of the project Bell Pottinger created fake videos that were approved by General
David Petraeus David Howell Petraeus (; born 7 November 1952) is a retired United States Army General (United States), general who served as the fourth director of the Central Intelligence Agency from September 2011 until his resignation in November 2012. Pri ...
and that appeared to be the work of Al-Qaeda. It also created and distributed news stories that had the appearance of being produced by Arab media outlets. Lord Bell confirmed Bell Pottinger reported to the Pentagon, the
CIA The Central Intelligence Agency (CIA; ) is a civilian foreign intelligence service of the federal government of the United States tasked with advancing national security through collecting and analyzing intelligence from around the world and ...
and the U.S. National Security Council on its work in Iraq.


Activities in South Africa

Bell Pottinger was accused of facilitating state capture by the Gupta family, in working to burnish the reputation of a family owned investment company, Oakbay Investments, with connections to former South African President
Jacob Zuma Jacob Gedleyihlekisa Zuma (; born 12 April 1942) is a South African politician who served as the fourth president of South Africa from 2009 to 2018. He is also referred to by his initials JZ and clan names Nxamalala and Msholozi. Zuma was a for ...
. The accusations developed into a major South African political controversy, and led to further accusations of exploiting racial tensions in South Africa for commercial gain, the expulsion of the firm from its professional body, a mass exodus of clients, and, in September 2017, its closure.


Internet activities in 2016 and first clients depart

Bell Pottinger was introduced to the Guptas in January 2016 by Chris Geoghegan, father of Bell Pottinger executive Victoria Geoghegan, and a non-executive director of Rentokil Initial, and he received monthly fees totalling £120,000 from the agency for his services. In September 2017, he resigned from his role at Rentokil Initial. In late February 2016, several internet-based sources were altered to be more favourable to the Guptas. These included activities in Wikipedia, Twitter, chat rooms, blogs and on news articles related to the Gupta family. It was considered (by the ''
Mail and Guardian The mail or post is a system for physically transporting postcards, letters, and parcels. A postal service can be private or public, though many governments place restrictions on private systems. Since the mid-19th century, national postal sys ...
'') that these alterations were part of "a concerted online counter-propaganda campaign launched on behalf of the Gupta family". After emails from servers associated with Gupta newspapers were leaked, Bell Pottinger was reported to have been involved in substantial editing of the Wikipedia page about the Guptas; a Bell Pottinger employee was said to have emailed much of the content to a Gupta account for it to be uploaded. The firm was also reported to have manipulated Wikipedia on behalf of its clients in South Africa in 2016, including Oakbay Investments, affecting the company's relationships with other agency customers. After ''
Business Day A business day normally means any day except a legal holiday. It may also mean a business day of operation, any of the days an organization operates. It depends on the local workweek which is dictated by local customs, religions, and business ...
'' reported that Bell Pottinger had taken on Oakbay Investments as a client,
Investec Investec is an Anglo- South African international banking and wealth management group, founded in Johannesburg, South Africa. It provides a range of financial products and services to a client base in Europe, Southern Africa, and Asia-Pacific. ...
stopped using Bell Pottinger's services in March 2016. In December 2016, it was reported that South African billionaire
Johann Rupert Johann Peter Rupert (born 1 June 1950) is a South African billionaire Businessperson, businessman, who is the eldest son of business tycoon Anton Rupert and his wife Huberte. He is the Chair (officer), chairman of the Swiss-based luxury goods c ...
had also dropped Bell Pottinger as the PR agency of
Richemont Compagnie Financière Richemont S.A., commonly known as Richemont, is a Switzerland-based luxury goods holding company founded in 1988 by South African businessman Johann Rupert. Through its various subsidiaries, Richemont produces and sells jew ...
. Rupert ended the contract after accusing Bell Pottinger of running a social media campaign against him, to divert attention away from persistent "state capture" allegations leveled at the Gupta family. In February 2017, Rupert alleged that Bell Pottinger had maliciously altered his Wikipedia page.


Exposure of plans, and resulting loss of reputation

On 19 March 2017, the South African ''
Sunday Times ''The Sunday Times'' is a British Sunday newspaper whose circulation makes it the largest in Britain's quality press market category. It was founded in 1821 as ''The New Observer''. It is published by Times Newspapers Ltd, a subsidiary of N ...
'' alleged that Bell Pottinger was behind a social media strategy, using a network of fake bloggers, commentators and Twitter users, in an attempt to influence public opinion, exacerbate racism, and sow racial division in South Africa, as well as targeting media and personalities that were opposed to the Gupta family, on their clients' behalf. The aim of the campaign was to portray the Gupta family as victims of a conspiracy involving " white monopoly capital" to deflect accusations and evidence of their clients' involvement in corruption and state capture, and to suggest that "white monopoly capital" is actively blocking transformation in South Africa. The allegations were denied by lead partner and Bell Pottinger director Victoria Geoghegan. On 12 April 2017, it was reported that Bell Pottinger had dropped the Gupta family as a client, having previously been paid around £100,000 per month, reportedly citing "threatening" social media attacks and "insulting" allegations that it had incited racial tensions. Pottinger's involvement with the Gupta family was further highlighted in June 2017 when South African newspapers ''The Citizen'' and ''Sunday Times'' published several emails, allegedly between Jacob Zuma's son (and close Gupta comrade)
Duduzane Zuma Duduzane Zuma (born 20 May 1982) is the son of the former president of South Africa, Jacob Zuma. Biography Zuma came to prominence between 2007 and 2009 when his father became the president of the African National Congress and later the Presi ...
and Bell Pottinger, pointing to a "dirty" public relations smear battle. They proposed that Hamza Farooqui (MD of WorldSpace in South Africa, and a partner to Gupta associate Salim Essa) would accuse the former South African Deputy Finance Minister,
Mcebisi Jonas Mcebisi Hubert Jonas (born 1960) is a South African politician and businessman who was the Deputy Minister of Finance of South Africa between May 2014 and March 2017. He is best known as a state capture whistleblower. In 2016, he publicly alle ...
, of dishonesty and corruption. This alleged "dirty" statement was formed by Bell Pottinger employee, Nick Lambert. The statement was earmarked for release soon after Jonas said that he was offered a bribe by a Gupta family member to betray his boss, Pravin Gordhan. Jonas refused this bribe and instead made a public announcement. The "dirty" statement was never released after legal concerns were raised by Bell Pottinger's Victoria Geoghegan. Nick Lambert, senior advisor at Bell Pottinger, was also said to have prepared "key moments" for a speech by African National Congress (ANC) Youth League leader Collen Maine. The speech included a quote "Those who want to disrupt the State of the Nation speech must prepare themselves for a civil war." Bell Pottinger initially denied any allegations of wrongdoing. Lord Bell was said to have "left his own firm with key staff members, in apparent disgust over the plan"; Bell confirmed in July 2017 that the Oakbay actions had been a factor in his August 2016 departure. In June 2017 the South Africa's Democratic Alliance criticised the country's tourism board for working with Bell Pottinger "at the same time as the Guptas were paying them ell Pottingerto sow division in South Africa" (the tourist board contract had been terminated, with the board denying this was for political reasons). The Democratic Alliance also complained about Bell Pottinger's actions to two UK PR bodies, the
Public Relations and Communications Association The Public Relations and Communications Association (PRCA) is a trade association for the public relations sector in the United Kingdom. The association lobbies on behalf of its member companies and also provides a forum for sharing information. ...
(PRCA) and the Chartered Institute of Public Relations (CIPR). DA spokesperson Phumzile van Damme said Bell Pottinger tried to divide and conquer South Africans by abusing racial tensions in a bid to keep Jacob Zuma and his party, the ANC, in power despite ongoing reports of "state capture" by the Gupta family. On 4 July, the PRCA acknowledged receipt of the Democratic Alliance's complaint, and on 13 July said it had also received written observations in response from Bell Pottinger. The ''Guardian'' said Democratic Alliance leader
Mmusi Maimane Mmusi Aloysias Maimane (born 6 June 1980) is a South African politician, businessman, and leader of Build One South Africa, a political party. Maimane is also the former Leader of South Africa, South Africa's opposition Democratic Alliance (So ...
had called for the PRCA to strip Bell Pottinger of its membership, with the matter to be considered by the PRCA's disciplinary committee on 18 August 2017; it also reported that clients were "considering leaving" Bell Pottinger "as clients do not want to be represented by PR firms that become the story or are associated with scandal". The PRCA said a final announcement would be made on or before the week commencing 4 September 2017. The Democratic Alliance later decided not to pursue the complaint laid with the CIPR. On 30 June 2017, Bell Pottinger announced that it was hiring law firm Herbert Smith Freehills to review its dealing with Oakbay Investments in light of the allegations made against Bell Pottinger that it intentionally aggravated racial tensions in South Africa in an effort to deflect attention away from its client. On 6 July 2017 Bell Pottinger CEO James Henderson issued an apology and announced that it had "dismissed the lead partner involved n the Oakbay portfolioand suspended another partner and two employees so that heycan determine their precise role in what took place." This came following initial findings from the Herbert Smith Freehills investigation. The dismissed lead partner was Victoria Geoghegan. The company also lost its second-largest investor (Chime), as well as experiencing an exodus of major clients and senior staff, due to the growing scandal. In September 2017 Herbert Smith Freehills concluded that the firm had breached ethical standards, lacked appropriate policies for managing controversial accounts, and had brought the PR industry into disrepute. Reports that the complaint to the PRCA had been upheld appeared in the media on 24 August, before the official statement. Bell Pottinger appealed against the ruling, and James Henderson resigned around the weekend of 2–3 September 2017. On 4 September, the PRCA announced Bell Pottinger's expulsion. Francis Ingham, director-general of the PRCA, described the company's actions, which had incited racial hatred, as "absolutely unthinkable", saying Bell Pottinger had "brought the PR and communications industry into disrepute with its actions, and it has received the harshest possible sanctions." The PRCA said the firm had received a "damning indictment", having breached four of its conduct charter clauses. The firm had previously stated that the allegations were purely a smear campaign having no truth to them.


Closure

Lord Bell, a founder of Bell Pottinger, told '' BBC Newsnight'' he believed it was unlikely the company could survive the damaging South Africa scandal. Following reports that Bell Pottinger had appointed accountancy firm BDO to find a buyer, on 7 September the BBC reported that staff had been told that the firm could go into
administration Administration may refer to: Management of organizations * Management, the act of directing people towards accomplishing a goal: the process of dealing with or controlling things or people. ** Administrative assistant, traditionally known as a se ...
by 15 September 2017. Subsequent reports suggested administration on 12 September, and so it proved, with some staff immediately being made redundant. In addition to staff who had previously left the firm, some in disgust at its South African work, around 180 partners and employees were reported to be losing their jobs. BDO's efforts to retain any value in Bell Pottinger included seeking fees from rival companies if senior personnel left the company and took clients with them to a competitor or newly established business. From 40 partners at the end of August 2017, 10–15 remained by 25 September. Potential buyers of the disgraced company were reported to be deterred by high levels of debt on the firm's balance sheet; it had £15.7m-worth of liabilities at the end of August, including a £6.8m loan from a UK clearing bank. Legal firm Herbert Smith Freehills was reported to be owed nearly £1m when BDO presented a report to creditors on 10 November 2017. It was reported Bell Pottinger had made a £500,000 loss on estimated UK revenues of £27m in the year to December 2016; BDO prepared draft accounts for administration purposes showing a net loss of £572,000 on a group turnover of £37.5m in 2016. Bell Pottinger employed one staff member and two partners until the BDO report was prepared at the start of November 2017, but then had no employees.


Legal action

Shareholders were reported to be considering taking legal action against former Bell Pottinger directors for not disclosing the scale of the problem in South Africa, claiming that this non-disclosure affected their participation in a share buy-back in early 2017. In January 2018, former Bell Pottinger partners were reported to be angry at the £900,000 fees paid to law firms and administrator BDO for winding down the company. Several senior staff also lost substantial sums to settle tax bills; up to 15 partners were said to have lost more than £1m. Two former partners – Nick Lambert and Victoria Geoghegan, both involved with the Oakbay project – were reported to be considering legal action, through lawyers Mishcon de Reya. Heather Kerzner (Henderson's partner) instructed London law firm Grosvenor Law to explore ways of clawing back some of her investment in Bell Pottinger. In October 2018, the Times reported that around 40 former Bell Pottinger partners faced a £4m demand from the company's liquidator, BDO, with Henderson asked to repay £400,000. In April 2019, BDO said it could bring lawsuits against former Bell Pottinger partners for their involvement in work for Oakbay, which breached partnership agreements. BDO said it would talk to creditors, owed a combined £14m, about launching claims, adding that it could also sue Lord Bell over his comments to the BBC before the company's collapse. In October 2019, it was reported that 21 former Bell Pottinger partners had repaid £468,000; former CEO James Henderson was said to have disputed the amount requested by BDO. Bell Pottinger's creditors include
Lloyds Bank Lloyds Bank plc is a major British retail banking, retail and commercial bank with a significant presence across England and Wales. It has traditionally been regarded one of the "Big Four (banking)#England and Wales, Big Four" clearing house ...
– owed £5.1m. Repayments will also fund BDO fees, which in October 2019 totalled £1.2m. In July 2020, it was reported that former Bell Pottinger partners including Henderson also faced potential disqualification from acting as company directors by the
Insolvency Service The Insolvency Service is an executive agency of the Department for Business and Trade with headquarters in London. It has around 1,700 staff, operating from 22 locations across the UK. The Insolvency Service administers compulsory company liq ...
under provisions of the
Company Directors Disqualification Act 1986 The Company Directors Disqualification Act 1986 (c. 46) forms part of UK company law and sets out the procedures for company directors to be disqualified in certain cases of misconduct. History Lord Millett, in the opinion he gave in , summari ...
. Henderson vowed to fight any attempts to disqualify him. In November 2020, the ''Times'' reported that former partners at Bell Pottinger had yet to repay £1.8 million in "excess drawings" from the business prior to its collapse. Liquidators were also pursuing an unnamed partner for an additional sum, with litigation alleging breach of contract and "significant and related excess drawings". In March 2021, Lambert and Geoghegan failed in a legal action to avoid being banned from acting as company directors. Henderson was not part of this legal action, but had previously described the Insolvency Service's case against him as "weak and misconceived". In March 2023, the Insolvency Service dropped its case against Henderson, Geoghegan and Lambert.


Former employees

In early October 2017, 19 former Bell Pottinger staff joined a new unit within London public affairs firm Pagefield, senior partners John Sunnucks and Tim Collins set up a new business called Vico Partners, and Alex Bloxham and Jamie Lyons joined MHP. Before the end of October, a further five ex-Bell Pottinger staff had joined Pagefield, with others going to agencies including FleishmanHillard Fishburn, FTI Consulting, Lansons and Tulchan Communications. In the meantime, the company's regional operations in the Far East and Middle East both split away from the parent firm. The 50-strong Far East business headquartered in Singapore, was rebranded as Klareco Communications (Klareco means "clarity" in
Esperanto Esperanto (, ) is the world's most widely spoken Constructed language, constructed international auxiliary language. Created by L. L. Zamenhof in 1887 to be 'the International Language' (), it is intended to be a universal second language for ...
), following a management buyout led by Mark Worthington and Ang Shih Huei. Former chairman and co-founder Piers Pottinger resigned his position with immediate effect. On 20 November, ''City AM'' reported that BPME had been acquired by London-based Hanover Communications, adding 14 staff. In January 2017, former Bell Pottinger London partner Jonathan Lehrle founded Sans Frontieres Associates; former Bell Pottinger staff Jerome Hasler and Philip Peck joined him. In December 2017, Henderson was planning to launch a new business in 2018. In January 2018, J&H Communications Ltd (incorporated on 7 December 2017) was reported to be working for the prime minister of
Turkey Turkey, officially the Republic of Türkiye, is a country mainly located in Anatolia in West Asia, with a relatively small part called East Thrace in Southeast Europe. It borders the Black Sea to the north; Georgia (country), Georgia, Armen ...
, and later for property tycoon Robert Tchenguiz. Henderson told ''
PRWeek ''PRWeek'' is a trade magazine and news website for the public relations and wider communications industry. It is published by Haymarket Media Group. History ''PRWeek'' was originally launched as a private venture in 1984 and was acquired b ...
'' J&H would concentrate on "corporate, financial, brand, regulatory and reputation management" work. In March 2019, Geoghegan joined risk management and corporate communications consultancy Thoburns, which also employed Lambert. In June 2020, Consulum, founded by two former Bell Pottinger employees, Tim Ryan and Matthew Gunther Bushell, was appointed by the Hong Kong government to counter negative coverage of the territory in the international media.


Legacy

The collapse of Bell Pottinger is the subject of '' Influence'', a 2020 Canadian/South African documentary film, described as "a hugely detailed, unnerving expose."


Notable clients

*
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* Acacia Mining *
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*
Aggreko Aggreko is a global supplier of mobile and modular power, temperature control equipment and energy services, headquartered in Glasgow, Scotland. The business was founded in 1962 and previously listed on the London Stock Exchange from 1997 to 20 ...
*
Airbus Airbus SE ( ; ; ; ) is a Pan-European aerospace corporation. The company's primary business is the design and manufacturing of commercial aircraft but it also has separate Airbus Defence and Space, defence and space and Airbus Helicopters, he ...
:
UK government His Majesty's Government, abbreviated to HM Government or otherwise UK Government, is the central government, central executive authority of the United Kingdom of Great Britain and Northern Ireland.
relations *
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* Arbuthnot Banking Group *
ASDA Asda Stores Limited (), trading as Asda and often styled as ASDA, is a British supermarket and petrol station chain. Its headquarters is in Leeds, England. The company was incorporated as Associated Dairies and Farm Stores in 1949. It expanded ...
* Asma al-Assad (wife of Syrian president
Bashar al-Assad Bashar al-Assad (born 11September 1965) is a Syrian politician, military officer and former dictator Sources characterising Assad as a dictator: who served as the president of Syria from 2000 until fall of the Assad regime, his government ...
) * BCA Marketplace * The government of
Bahrain Bahrain, officially the Kingdom of Bahrain, is an island country in West Asia. Situated on the Persian Gulf, it comprises a small archipelago of 50 natural islands and an additional 33 artificial islands, centered on Bahrain Island, which mak ...
. * The government of
Belarus Belarus, officially the Republic of Belarus, is a landlocked country in Eastern Europe. It is bordered by Russia to the east and northeast, Ukraine to the south, Poland to the west, and Lithuania and Latvia to the northwest. Belarus spans an a ...
* Berwin Leighton Paisner * Birds Eye *
Bloomsbury Publishing Bloomsbury Publishing plc is a British worldwide publishing house of fiction and non-fiction. Bloomsbury's head office is located on Bedford Square in Bloomsbury, an area of the London Borough of Camden. It has a US publishing office located in ...
* Boris Berozovsky *
Carillion Carillion plc was a British multinational construction and facilities management services company headquartered in Wolverhampton in the United Kingdom, prior to its liquidation in January 2018. Carillion was created in July 1999, following a ...
*
Centrica Centrica plc is a British  multinational energy and services company with its headquarters in Windsor, Berkshire, England. It is the largest supplier of gas to domestic customers in the United Kingdom, and one of the largest suppliers ...
*
Coca-Cola Coca-Cola, or Coke, is a cola soft drink manufactured by the Coca-Cola Company. In 2013, Coke products were sold in over 200 countries and territories worldwide, with consumers drinking more than 1.8 billion company beverage servings ...
* Cuadrilla Resources * CYBG plc * D&D London *
Dassault Groupe Industriel Marcel Dassault SAS (; also GIM Dassault or Dassault Group) is a French corporate group established in 1929 with the creation of Société des Avions Marcel Bloch (now Dassault Aviation) by Marcel Dassault, later led by his so ...
*
Deloitte Deloitte is a multinational professional services network based in London, United Kingdom. It is the largest professional services network in the world by revenue and number of employees, and is one of the Big Four accounting firms, along wi ...
*
DuPont Dupont, DuPont, Du Pont, duPont, or du Pont may refer to: People * Dupont (surname) Dupont, also spelled as DuPont, duPont, Du Pont, or du Pont is a French surname meaning "of the bridge", historically indicating that the holder of the surname re ...
* DWF *
Dyson Dyson may refer to: * Dyson (surname), people with the surname Dyson * Dyson (company), a Singaporean multinational home appliances company founded by James Dyson * Dyson (crater), a crater on the Moon * Dyson (operating system), a Unix general- ...
Ltd. *
EADS Airbus SE ( ; ; ; ) is a Pan-European aerospace corporation. The company's primary business is the design and manufacturing of commercial aircraft but it also has separate defence and space and helicopter divisions. Airbus has long been th ...
* eBay * Emirates Airline: *Ernst & Young UK * Fortnum & Mason *Friends Life Group, Friends Life * Fresnillo * GCM Resources * Greybull Capital * Hansard Global * Rolf Harris * Hays plc, Hays * Health Promotion Board * Trevor Hemmings * Hickman and Rose *Hitachi Capital (UK) plc *HSBC *Huawei * InterContinental Hotels Group, IHG * Imperial Brands *
Investec Investec is an Anglo- South African international banking and wealth management group, founded in Johannesburg, South Africa. It provides a range of financial products and services to a client base in Europe, Southern Africa, and Asia-Pacific. ...
* Johnston Press * Lookers * Alexander Lukashenko, President of Belarus *Madrid bid for the 2016 Summer Olympics, Madrid Olympic Bid *Disappearance of Madeleine McCann, Kate and Gerry McCann *Milk Link: Since 2003. * Missguided * Mitie * Molson Coors * Mountain Warehouse * Mulberry (company), Mulberry * Multiplex (company), Multiplex Wembley *NATS Holdings * NHS * O2 (UK), O2 * Gupta family, Oakbay Investments *Pan African Resources *PayPoint * Augusto Pinochet, Pinochet Foundation *Pinsent Masons *Oscar Pistorius *Playtech * Premier Oil * Press Association *Primary Health Properties * Prudential plc, Prudential * Qatar Airways * Reliance Industries * Rentokil Initial *
Richemont Compagnie Financière Richemont S.A., commonly known as Richemont, is a Switzerland-based luxury goods holding company founded in 1988 by South African businessman Johann Rupert. Through its various subsidiaries, Richemont produces and sells jew ...
* RSA Insurance Group * Ali Abdullah Saleh *Sandell Asset Management * Secure Trust Bank * Sega Europe * Severfield * Siemens * SOCO International * South African Tourism * The government of Sri Lanka. * St. James's Place plc, St James's Place *TalkTalk Group *Tarmac (company), Tarmac * Tata group * Temasek *Templeton Prize, The Templeton Prize * Tharisa *Transaction Network Services, TNS * Trafigura (in relation to 2006 Ivory Coast toxic waste dump) * Uber * UNITE Group *United Biscuits * Veolia * Virgin Media Business * Visit Scotland * Volvo *Waitrose *Williams Grand Prix Engineering, AT&T Williams *Zanaga mine


Notes and references


External links


Review by Herbert Smith Freehills, published September 2017

Network diagram showing some of the better known Bell Pottinger fake accounts used in its South Africa campaign, including their connections, and online attacks+support routed through the accounts
{{Authority control Defunct companies based in London Public relations companies of the United Kingdom Conflict-of-interest editing on Wikipedia Political scandals in South Africa Racism in South Africa Disinformation operations Companies that have entered administration in the United Kingdom 2017 disestablishments in England British companies disestablished in 2017 Reputation management companies