Bell Pottinger's Asian unit to form a new company

Bell Pottinger‚ the United Kingdom public relations (PR) firm slammed for its controversial handling of the Gupta family account‚ has broken off its Asia unit to form a new company.

Meanwhile‚ the Democratic Alliance is still waiting for Britain’s Chartered Institute of Public Relations (CIPR) to respond to the complaint it laid in July against the PR company.

The Financial Times reported on Friday that Bell Pottinger’s Asia unit will separate from the parent company to form Klareco Communications.

The PR firm is losing clients after running its racially divisive campaign in South Africa for the Guptas.

The DA also laid a complaint against Bell Pottinger with the United Kingdom’s Public Relations and Communications Association (PRCA).

The PRCA expelled Bell Pottinger for a minimum of five years.

DA MP Phumzile van Damme said the backlash against Bell Pottinger is what should have happened to the Gupta family.

“It’s an example how these things should be dealt with in South Africa‚” Van Damme said. “Here government is silent. Gupta companies are doing relatively okay.”

She could not comment on the complaint at the CIPR.

The CIPR says on its website that all parties involved in a complaint must “maintain confidentiality throughout”.

“The CIPR will not confirm or deny the existence of a complaint and will not comment on any disciplinary matter until a final adjudication has been made - and only then in certain circumstances.”

The CIPR said on Tuesday that the PR company has never been a member of the institute. Only three Bell Pottinger employees are CIPR members.

CIPR deputy chief executive Phil Morgan said complaints are handled by an independent party to avoid a conflict of interest‚ adding that “we don’t know how long [it] will take.”

Bell Pottinger said on Wednesday it had hired accountancy firm BDO to advise it on a possible sale.

The Financial Times reported on Thursday that Bell Pottinger might go under administration next week after failing to find a buyer.