Mandelson not such a business mandarin

IT HAS been a hallmark of Lord (Peter) Mandelson’s post-ministerial career that he has hawked his services across the world, picking up big cheques along the way.

His links stretch from Russia to China, across Asia and to wealthy Arab nations. But he seems to take less interest in British businesses.

As part of this portfolio, Mandelson joined the ‘senior advisory board’ of the investment group Sapinda, run by the German Lars Windhorst.

Over recent years this flamboyant financier has suffered two bankruptcies and stood trial on 35 charges of fraud, embezzlement and breach of trust in Berlin. After a plea bargain, prosecutors agreed to drop the fraud charges if Windhorst paid an £850,000 fine, repaid £2.1 million to an alleged victim and admitted a breach of trust offence, for which he got a year’s suspended jail sentence.

Mandelson’s ‘advice’ does not seem to have helped Windhorst.

Sapinda has had a dreadful past 12 months, though in all fairness it should be noted that the worst of the firm’s tribulations have taken place since his departure. Its main investments plunged in value. A high-profile investment in video games was soured by reports that employees, creditors and even prize-winners had not received money due to them.

Windhorst has now resigned from Sapinda. Mandelson had already quit the board.

At the very least, Mandelson’s relationship with Windhorst throws doubt on his own judgment. Throughout his career he has suffered cruel slurs on his reputation. To avoid this happening again, he would be wise to volunteer a full account of his relationship with Windhorst.

Lord Mandelson did not answer my questions to him yesterday.