WPP, the world’s second largest advertising company, has quietly offloaded its interest in a Zimbabwean agency involved in President Robert Mugabe’s re-election campaign. The 25 per cent stake in Imago Young & Rubicam was sold by WPP last month for just $1 to the majority shareholder, Sharon Mugabe, who is also chief executive. WPP, run by chief executive Sir Martin Sorrell, had been assured that she was no relation to the president. As part of the deal, Imago Young & Rubicam is changing its name to remove all references to Young & Rubicam and associated brands. Y&R is one of the most powerful agencies in Sorrell’s global empire. The sale followed revelations in June that Imago was advising President Mugabe on advertising for his re-election campaign, which was blighted by allegations of violence, intimidation and vote-rigging. British companies have come under fire for remaining in the country and the British Government has suggested they could be forced to leave. A growing number of Western companies are pulling out, including Shell. Tesco has said it will no longer source food from Zimbabwe. Barclays, Standard Chartered and the mining corporations Anglo American and Rio Tinto have all so far decided to stay. In June WPP distanced itself from Imago Young & Rubicam, saying it had “no legal control” of the business, and that it shared “the world’s outrage at what is happening” in Zimbabwe. WPP added: “This could never happen with our knowledge or approval and we investigated the situation as a matter of urgency.” Last week it emerged that Zimbabwe’s inflation rate had surged to 11.2m per cent in June. Some observers fear that Mugabe is planning “corporate seizures” similar to his land grab of white farms eight years ago, which helped precipitate its descent into economic chaos.

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