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| Bell Pottinger unlikely to honour payments to co-founder Tim Bell | Bell Pottinger unlikely to honour payments to co-founder Tim Bell |
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| The co-founder of Bell Pottinger, Tim Bell, has emerged as one of the creditors the firm’s administrators are unlikely to be able to pay back, with a £300,000 bill outstanding from his multimillion-pound deal to leave the disgraced City PR firm last year. | The co-founder of Bell Pottinger, Tim Bell, has emerged as one of the creditors the firm’s administrators are unlikely to be able to pay back, with a £300,000 bill outstanding from his multimillion-pound deal to leave the disgraced City PR firm last year. |
| Lord Bell left the agency last summer in a deal thought to be worth as much as £2.5m that included the company buying his stake. | Lord Bell left the agency last summer in a deal thought to be worth as much as £2.5m that included the company buying his stake. |
| Bell’s exit deal involved a series of staged payouts, and the move to put the business into administration on Tuesday has left him owed hundreds of thousands of pounds. | Bell’s exit deal involved a series of staged payouts, and the move to put the business into administration on Tuesday has left him owed hundreds of thousands of pounds. |
| “They owe me £300,000 which they won’t [be able] to pay,” he said. “The payments paid to me are spread over a long period of time and include [one due in] the next four months. I won’t see it.” | “They owe me £300,000 which they won’t [be able] to pay,” he said. “The payments paid to me are spread over a long period of time and include [one due in] the next four months. I won’t see it.” |
| Before the scandal, Bell Pottinger had accumulated debts understood to be in the region of £5m owed to Barclays bank, in part related to payouts to a number of former management, including Bell. | Before the scandal, Bell Pottinger had accumulated debts understood to be in the region of £5m owed to Barclays bank, in part related to payouts to a number of former management, including Bell. |
| The majority of the firm’s 250 staff were made redundant on Tuesday and almost certainly will not receive pay owed to them. About 30 former Bell Pottinger partners who were paid net of tax face huge tax liabilities. | The majority of the firm’s 250 staff were made redundant on Tuesday and almost certainly will not receive pay owed to them. About 30 former Bell Pottinger partners who were paid net of tax face huge tax liabilities. |
| The administrators, BDO, which had unsuccessfully sought a buyer for the company in a fire sale, said Bell Pottinger had been “heavily financially impacted” by the loss of clients, partners and staff as the South Africa scandal poisoned the business. | The administrators, BDO, which had unsuccessfully sought a buyer for the company in a fire sale, said Bell Pottinger had been “heavily financially impacted” by the loss of clients, partners and staff as the South Africa scandal poisoned the business. |
| The firm was being paid £100,000 a month by its client Oakbay Capital, the holding company of the wealthy, powerful and controversial Gupta family, to run a social media and PR campaign in South Africa focused on “economic apartheid”. | The firm was being paid £100,000 a month by its client Oakbay Capital, the holding company of the wealthy, powerful and controversial Gupta family, to run a social media and PR campaign in South Africa focused on “economic apartheid”. |
| The Guptas have been accused of benefiting financially from their close links to the South African president, Jacob Zuma, whose son Duduzane has been a director at several Gupta-owned companies and worked for Oakbay. Both have previously denied such a relationship. | The Guptas have been accused of benefiting financially from their close links to the South African president, Jacob Zuma, whose son Duduzane has been a director at several Gupta-owned companies and worked for Oakbay. Both have previously denied such a relationship. |
| Bell has admitted he was part of a Bell Pottinger team that travelled to South Africa in early 2016 to have meeting with members of the Gupta family about representing them. | Bell has admitted he was part of a Bell Pottinger team that travelled to South Africa in early 2016 to have meeting with members of the Gupta family about representing them. |
| He maintains, however, that he had nothing to do with running the business. He claims he felt the deal was “smelly” and that warnings to agency bosses not to take the account were ignored. | He maintains, however, that he had nothing to do with running the business. He claims he felt the deal was “smelly” and that warnings to agency bosses not to take the account were ignored. |
| Bell, who has set up his own PR firm dealing with the sensitive geopolitical clients with which he made his name, said he was not interested in speaking to administrators about salvaging any part of the firm he set up in 1987. | Bell, who has set up his own PR firm dealing with the sensitive geopolitical clients with which he made his name, said he was not interested in speaking to administrators about salvaging any part of the firm he set up in 1987. |
| “I am not making any move for the company at all,” he said. “I think the name should go. [Co-founder] Piers [Pottinger] is buying out the Asian business under a new name, so the Pottinger part is disappearing. So Bell will disappear too.” | “I am not making any move for the company at all,” he said. “I think the name should go. [Co-founder] Piers [Pottinger] is buying out the Asian business under a new name, so the Pottinger part is disappearing. So Bell will disappear too.” |
| The management of the Asian and Middle East businesses, which are legally separate and have not been affected by the scandal, are in talks with BDO about being spun off and rebranded. | The management of the Asian and Middle East businesses, which are legally separate and have not been affected by the scandal, are in talks with BDO about being spun off and rebranded. |
| Pottinger is attempting to relaunch the Asian business as Klareco Communications, which means “clarity” in Esperanto. | Pottinger is attempting to relaunch the Asian business as Klareco Communications, which means “clarity” in Esperanto. |
| Top executives at Bell Pottinger Middle East are understood to be in London this week as part of discussions with potential investors to back its bid to spin off the business, which has its headquarters in Abu Dhabi. | Top executives at Bell Pottinger Middle East are understood to be in London this week as part of discussions with potential investors to back its bid to spin off the business, which has its headquarters in Abu Dhabi. |
| In a statement BDO said that it is 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”. | In a statement BDO said that it is 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”. |
| The Public Relations and Communications Association banned Bell Pottinger last week for at least five years, saying it had never before “passed down such a damning indictment of an agency’s behaviour” – an unprecedented sanction against a City PR firm of Bell Pottinger’s size. | The Public Relations and Communications Association banned Bell Pottinger last week for at least five years, saying it had never before “passed down such a damning indictment of an agency’s behaviour” – an unprecedented sanction against a City PR firm of Bell Pottinger’s size. |