Bell Pottinger accused of 'racial' South Africa PR campaign

London (AFP) - British public relations firm Bell Pottinger was expelled from a trade body Tuesday over a controversial campaign in South Africa that was found "likely to inflame racial discord".

The decision by the Britain-based Public Relations and Communications Associations (PRCA) comes after Bell Pottinger ran a campaign which included the phrase "white monopoly capital".

It was carried out on behalf of Oakbay Capital, a company run by the wealthy Gupta family, who are accused of wielding undue influence over the South African government.

A PRCA committee set up to investigate the matter said the British firm's campaign was "likely to inflame racial discord in South Africa and appears to have done exactly that".

Announcing the decision to expel Bell Pottinger from the PRCA, director general Francis Ingham said the PR firm had brought the industry "into disrepute with its actions".

"The PRCA has never before passed down such a damning indictment," he said.

The decision has no financial costs for Bell Pottinger, which will be able to operate as normal.

"But they will be doing so with the impact of significant reputational damage," the PRCA's Matt Cartmell told AFP.

"The potential impact on them is large because they've been publicly expelled from the PRCA," he added.

S.Africa's 'fragile race relations'

Bell Pottinger co-founder Tim Bell told the BBC it "almost certainly" signalled the end for the firm.

"I think it probably is getting near the end, you can try and rescue it but it won't be very successful," Bell told the BBC's Newsnight programme.

"I don't take any responsibility... I resigned from the company in August last year, I published my resignation and I said one of the reasons I was leaving was because of the Gupta account," he said.

The South Africa's main opposition party, the Democratic Alliance (DA), which lodged the complaint with the PRCA, hailed Bell Pottinger's expulsion.

"It will take our country years to rebuild our severely fragile race relations, which Bell Pottinger, the Guptas and (South African President Jacob Zuma) sought to exploit for their own financial gains," it said.

The DA previously accused Bell Pottinger -- which was tasked with defending the Guptas' reputation -- of having run a "campaign to divide South Africa along the lines of race".

President Zuma is accused of unfairly granting lucrative government contracts to the Guptas and even taking their orders over ministerial appointments.

The DA party hope to make major gains against Zuma's ANC party, which was led to power in 1994 by Nelson Mandela, at 2019 elections.

On Sunday, Bell Pottinger's chief executive James Henderson resigned.

"There were warning signs that I should have heeded. Therefore I must take responsibility," he said.

An independent report conducted by law firm Herbert Smith Freehills released on Monday found senior management at fault for failing to put in place adequate policies.