The Mandelson Epstein scandal: Squalid, brazen and outrageous
Sex, money, power and influence.
Peter Mandelson, once a towering figure in Labour, in the government and in the City, has fallen. He is now the subject of a police investigation into allegations of misconduct in public office after thousands of emails contained in the latest Epstein files released by the US Department of Justice reveal that he basically lived a double life.
Mandelson was always controversial, to say the least, but he was also talented and that’s why a struggling Gordon Brown brought him back into the fold in 2008, making him a Lord and ultimately creating the title of First Secretary of State. Mandelson also served as Business Secretary and was by all accounts a central figure in discussions about Downing Street’s response to the global financial crisis and subsequent eurozone crisis.
We now know that throughout this time serving his country, he was in regular and intimate contact with Jeffrey Epstein – a man who was convicted in 2008 – the same year Mandelson entered the House of Lords – for child sex offences.
The revelations which have been on our front page every day this week, show that Mandelson appeared to routinely share with the convicted paedophile sensitive information from the heart of Downing Street while serving as a senior government minister. There’s a word for that.
Mandelson allegedly shared with Epstein details of a highly sensitive government policy to sell off public assets for billions of pounds; information relating to possible corporate tax changes; and information – highly market sensitive information – about the eurozone crisis of 2010. Remember Epstein was a financier, he had rich clients all over the world, Mandelson was just one contact – an intimate one, but just one of a web of people to whom such information might have been highly valuable.
Betrayal of party, government and country
Mandelson also kept Epstein right in the loop about life in Gordon Brown’s Downing Street and routinely discussed the prospects of ousting the PM. The day before Gordon Brown resigned, Mandelson emailed Epstein saying “finally got him to go.”
No wonder Labour figures from Gordon Brown down are furious with what they describe as Mandelson’s total betrayal of his party, government and country.
The political fallout here in the UK is not yet clear; Keir Starmer is seriously wounded by his massive error of judgement in appointing Mandelson as our ambassador to Washington. In Westminster, the sharks are circling. But away from the politics, what have we learnt about Mandelson’s sprawling business and financial interests?
At CityAM we have gone through hundreds and hundreds of emails between Mandelson and Epstein over the past few days. It offers a glimpse – not a full picture, but a glimpse – of that double life Mandelson was leading whilst serving in government but it also shines a light on what happened when he left government in 2010 and set about acquiring wealth.
Mandelson clearly leans on Epstein for advice and guidance as he tries to build a career after Labour lost the 2010 election. The emails make this clear. Mandelson wants introductions, he wants connections, he wants guidance on which board positions to accept and how much he should be paid. Epstein holds his hand through all of this, and the sense I got reading the emails wasn’t just that Mandelson needed advice from Epstein; it’s that he needed his approval. He appeared to crave it.
‘Good job, Petey…’
When Mandelson tells Epstein he’s in discussions about a million dollar advisory role at Deutsche Bank, Epstein replies ‘well done’ – to which Mandelson says, ‘is that all you have to say? What about well done Petey, good job Petey…’
Epstein obliges and says ‘OK, ok, ok, well done Petey…’ before telling him to aim higher. After all, a million dollars is peanuts to Epstein.
The dead paedophile was clearly an important figure in the earliest days of Mandelson launching his own business – Global Counsel – now a major City firm. Mandelson aks for client introductions, shares feedback on the business plan, discusses clients in Russia and China and keeps Epstein in the loop with business developments. Global Counsel is busy trying to sever all ties with Mandelson, telling us yesterday that ‘we are only now being made aware of the full extent of Mandelson’s conduct.”
Mandelson clearly wanted money, power and influence and it seems the relationship with Jeffrey Epstein – a convicted child sex offender from 2008 – helped him gain all three. What did Epstein get? Titbits of information, political gossip, the inside track, the friendship and gratitude of – for a while at least – one of the top figures in the British government?
There’s a telling exchange in 2012, by which time Mandelson had established his City career, in which Epstein emails him and says “I am disappointed in what appears to be a one way street … jeffrey can i have, jeffrey can you give, jeffrey can you organise … you have yet to offer real assistance.” Mandelson appears hurt by this.
Infidelity, sexual tastes and liaisons
And then there’s the seedy side of things. Emails from, to or about Peter Mandelson that I won’t quote here. Banter, innuendo, inappropriate jokes, it’s all there – along with emails that hint at infidelity, sexual tastes, liaisons, marital problems. They discuss it all, but the common thread, the foundation stone, is money. That’s what it all boils down to. Epstein had it, Mandelson wanted it and between them they enjoyed it.
There is much more to come. We will get sight of the government documents relating to Mandelson’s appointment as US ambassador and we will undoubtedly get more emails released by the US Department of Justice and some people are now calling for the European Union to investigate Mandelson’s time as the EU’s Trade Commissioner. There is also an active police investigation.
It all amounts to the most squalid, brazen and outrageous scandal that I can recall in two decades working in Westminster and the City and 7 years in financial journalism.