Damning report slams Bell Pottinger bosses over racism row

Disgraced PR firm Bell Pottinger’s own reputation took another savage blow today as an independent report slammed its handling of a campaign stoking racial tensions in South Africa on behalf of a major client.

The report into its activities on behalf of the billionaire Guptas in the Rainbow Nation by legal firm Herbert Smith Freehills turned the spotlight on senior management’s failings to monitor the campaign, which saw the spinners condemn opponents of President Jacob Zuma — a key ally of the Guptas — as agents of “white monopoly capital”.

That drew a formal complaint from the country’s opposition, the Democratic Alliance, to the Public Relations and Communications Association, and a scandal which has cost it a slew of City clients.

Two partners have already been sacked over the affair and two others remain suspended.

Chief executive James Henderson has resigned but remains a 40% shareholder.

He said it was important to take “proper accountability” but added: “I feel deeply let down by the colleagues who misled me.”

But the report stated: “Members of [Bell Pottinger’s] senior management should have known that the campaign was at risk of causing offence, including on grounds of race.

"In such circumstances BP ought to have exercised extreme care and should have closely scrutinised the creation of content for the campaign. This does not appear to have happened.”

The law firm examined more than 45,000 documents in the course of their review.

It found that the team handling the controversial account had supplied “inaccurate and misleading” information in some instances but added that “there were a series of opportunities for certain members of senior management to discover these matters which were missed”.

It added that senior management “failed to put in place policies and procedures to minimise the risks associated with this account”.

Henderson’s efforts to draw a line under the affair have been hindered by a raft of recent resignations. One insider said up to a dozen staff had quit.

The company also faces further sanction from the PR industry body, which sanctioned it last month.

The committee board — which can suspend or even terminate its membership — heard its appeal this morning and will announce its final verdict tomorrow.