Singapore, Asia ops 'not affected' by Bell Pottinger scandal

Singapore

AS a storm gathers around the global public relations (PR) firm, Bell Pottinger said that its operations in Singapore and Asia remain unaffected.

This came after the Public Relations and Communications Association (PRCA) in the United Kingdom expelled the firm for its alleged involvement in a racially controversial campaign in South Africa. Bell Pottinger CEO James Henderson also resigned from his position over the weekend.

On Tuesday, The Guardian reported that Bell Pottinger's second largest shareholder has walked away from the business by writing off its investment and handing back the stake to the PR firm. Chime, co-owned by US investment firm Providence Equity Partners and Sir Martin Sorrell's WPP group, has given up trying to sell its 27 per cent holding after the scandal broke.

Mark Worthington, partner and managing director, Singapore, Bell Pottinger, told BT on Tuesday that Bell Pottinger Asia's staff and management have no involvement in the scandal, and operations in Asia continue normally.

"Bell Pottinger Asia has always and will continue to operate according to the highest ethical standards. Bell Pottinger Asia staff and management have had no involvement in this matter, and operations in Asia continue as normal," he said.

A report in The Guardian said that the PRCA took action after an inquiry heard allegations that Bell Pottinger "sought to stir up anger" about "economic apartheid" in South Africa. The public relations firm had allegedly been paid £100,000 (S$176,014) a month to run a campaign on behalf of Oakbay Capital, an investment holding company run by the billionaire Gupta family.

The campaign, which had the phrase "white monopoly capital", is said to have stoked racial tensions in South Africa, accused the country's opposition, Democratic Alliance.

On Monday, a review ordered by Bell Pottinger found that the company's campaign work for the Guptas was "potentially racially divisive" and "in breach of relevant ethical principles". The publication of the review came a day after Mr Henderson's resignation, Financial Times said.

Bell Pottinger had issued a statement on July 6 this year, stating that it had decided to "cease work" for Oakbay Capital after working with the company for a year.

It said that it stopped the partnership due to "increasingly strong social media attacks" on staff and businesses in South Africa. It called in law firm Herbert Smith Freehills LLP to review the operation, dismissed the lead partner involved and suspended another partner and two employees.

Although there have been no reports of clients pulling out of its Asian operations in countries including Malaysia and Hong Kong so far, FT said that Bell Pottinger has lost big-name clients such as luxury goods group Richemont and South African banking and asset management company Investec.

In an interview with BBC, Lord Bell, former adviser to Margaret Thatcher and founder of Bell Pottinger, said that it is unlikely that the firm will recover from the scandal.

He attempted to distance himself from any association with the work in South Africa, despite admitting to leading early meetings. The PR guru, famed for helping Mrs Thatcher to three general election victories, argued that he had quit the firm in August last year partly because people did not listen to him over the Gupta work.

Francis Ingham, director-general of the PRCA, said: "Bell Pottinger has brought the PR and communications industry into disrepute with its actions, and has received the harshest possible sanctions. The PRCA has never before passed down such a damning indictment of an agency's behaviour."

According to its website, the PRCA represents many of the major consultancies in the UK, and currently has over 400 agency members from around the world including the majority of the top 150 UK consultancies.