Bell Pottinger was thrown out of the industry's British trade body because of a controversial campaign in South Africa. Bloomberg
Bell Pottinger was thrown out of the industry's British trade body because of a controversial campaign in South Africa. Bloomberg
Bell Pottinger was thrown out of the industry's British trade body because of a controversial campaign in South Africa. Bloomberg
Bell Pottinger was thrown out of the industry's British trade body because of a controversial campaign in South Africa. Bloomberg

Bell Pottinger's British business folds after South Africa scandal


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Bell Pottinger's British arm has gone into administration after the global public relations agency's clients deserted it over a racially-charged political campaign it ran in South Africa.

After working behind the scenes on some of the most defining moments in recent history, from the election of Margaret Thatcher to the death of Russian spy Alexander Litvinenko, Bell Pottinger crumpled following a scandal of its own making.

It entered a tailspin earlier this month after it was thrown out of the British public relations industry's trade body for running a campaign in support of South African President Jacob Zuma, funded by the influential Gupta family, that sought to stir racial tension.

Bell Pottinger, which is based in London, has lost customers, partners and its second-biggest shareholder in recent weeks, prompting the UK company to be put into administration - a form of creditor protection - after failing to find a buyer.

"Following an immediate assessment of the financial position, the administrators have made a number of redundancies," accountants BDO said on Tuesday.

"The administrators are now working with the remaining partners and employees to seek an orderly transfer of Bell Pottinger's clients to other firms in order to protect and realise value for creditors," BDO added.

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Bell Pottinger apologised in July this year after an email published in South African media showed it had sought to stress the continued "existence of economic apartheid".

With the inflammatory slogan "white monopoly capital" running on a Gupta-owned television channel, the country's main opposition party, the Democratic Alliance, complained that Bell Pottinger was seeking to "divide and conquer" the public.

The outcry led to the resignation of Bell Pottinger CEO James Henderson, also its biggest shareholder, while its second-biggest investor wrote off its stake. Clients such as global bank HSBC publicly distanced themselves from the firm.

BDO said none of Bell Pottinger's subsidiaries outside the UK were in administration, and would continue to trade under the control of their separate management teams.

Its Middle East business, based in Abu Dhabi and Dubai, is distancing itself as fast as it can from its London-based parent, spinning itself off as a separate business with a new name in the hope it can salvage something from the wreckage. Its east Asian subsidiary has already gone, rebranding as Klareco Communications.

"Bell Pottinger has been heavily financially impacted by the well-publicised issues," BDO said.

"Late last week, the level of those losses, compounded by the inability of the business to win new clients, was such that remaining management were left with no option but to commence the process to place all UK Bell Pottinger entities into administration," it added.

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This month, Dubai Medical College launched the Middle East’s first master's programme in addiction science.

Together with the Erada Centre for Treatment and Rehabilitation, the college offers a two-year master’s course as well as a one-year diploma in the same subject.

The move was announced earlier this year and is part of a new drive to combat drug abuse and increase the region’s capacity for treating drug addiction.

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Milestones on the road to union

1970

October 26: Bahrain withdraws from a proposal to create a federation of nine with the seven Trucial States and Qatar. 

December: Ahmed Al Suwaidi visits New York to discuss potential UN membership.

1971

March 1:  Alex Douglas Hume, Conservative foreign secretary confirms that Britain will leave the Gulf and “strongly supports” the creation of a Union of Arab Emirates.

July 12: Historic meeting at which Sheikh Zayed and Sheikh Rashid make a binding agreement to create what will become the UAE.

July 18: It is announced that the UAE will be formed from six emirates, with a proposed constitution signed. RAK is not yet part of the agreement.

August 6:  The fifth anniversary of Sheikh Zayed becoming Ruler of Abu Dhabi, with official celebrations deferred until later in the year.

August 15: Bahrain becomes independent.

September 3: Qatar becomes independent.

November 23-25: Meeting with Sheikh Zayed and Sheikh Rashid and senior British officials to fix December 2 as date of creation of the UAE.

November 29:  At 5.30pm Iranian forces seize the Greater and Lesser Tunbs by force.

November 30: Despite  a power sharing agreement, Tehran takes full control of Abu Musa. 

November 31: UK officials visit all six participating Emirates to formally end the Trucial States treaties

December 2: 11am, Dubai. New Supreme Council formally elects Sheikh Zayed as President. Treaty of Friendship signed with the UK. 11.30am. Flag raising ceremony at Union House and Al Manhal Palace in Abu Dhabi witnessed by Sheikh Khalifa, then Crown Prince of Abu Dhabi.

December 6: Arab League formally admits the UAE. The first British Ambassador presents his credentials to Sheikh Zayed.

December 9: UAE joins the United Nations.

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Always use only regulated platforms

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Courtesy: Crystal Intelligence

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