Former diplomats cause ‘huge damage’ to Britain’s reputation as firm collapses

They were handed tens of millions of pounds of British taxpayers’ money to deliver vital overseas projects for the Foreign Office and help bring stability to some of the world’s most volatile war-torn nations.

But two former UK diplomats were last night accused of causing ‘huge damage’ to Britain’s reputation across the Middle East and Africa after their firm Aktis Strategy collapsed, leaving hundreds of employees and suppliers in third-world countries to face massive debts.

Staff working in conflict zones have accused British embassies of ignoring their pleas for help as they are hounded by local businesses owed hundreds of thousands of pounds. Some former employees have been made homeless as a result.

Alex Martin's company was given millions of pounds of British taxpayers’ money to deliver vital overseas projects for the Foreign Office, where he and business partner Rathmell had worked

Alex Martin's company was given millions of pounds of British taxpayers’ money to deliver vital overseas projects for the Foreign Office, where he and business partner Rathmell had worked

Yet founders Dr Andrew Rathmell and Alex Martin – whose time at the Foreign Office helped to secure major UK Government contracts – appear to have escaped unscathed. An investigation by The Mail on Sunday can reveal:

British embassies have refused requests by desperate Aktis staff to settle bills owed to firms across the Middle East and Africa;More than 80 ex-staff are owed thousands in unpaid wages and pension contributions;The wife of Britain’s ambassador in Iraq quit her senior role with Aktis because she ‘saw the writing on the wall’;The ‘penny pinching’ firm is accused of failing to pay for security teams or health insurance for some field workers in conflict zones;Bosses blew a six-figure sum on a champagne-fuelled ‘retreat’ for staff.

One former senior staffer said: ‘The directors of Aktis have left their own staff high and dry and the debts to suppliers are eye-watering in places like Iraq. If it is not sorted out soon I fear that people will be killed over this. This is all hugely damaging for Britain’s reputation.’

A project co-ordinator in Erbil, Iraq, said she was being chased for more than £350,000 owed to suppliers. ‘It is a scary situation. I just don’t know how we are going to get the money back.’

Andrew Rathmell, pictured receiving a Medal of Valour, founded the company with Martin in 2013

Andrew Rathmell, pictured receiving a Medal of Valour, founded the company with Martin in 2013

Another Aktis source said: ‘People are getting desperate.’

The MoS has seen an email exchange between an Aktis employee and the British embassy in Iraq pleading for help to pay off angry businessmen chasing them for money.

The reply from a UK embassy official reads: ‘The FCO (Foreign and Commonwealth Office) has paid Aktis for work delivered in line with our contractual obligations.

‘The requirement to pay sub-contractors and staff rests with Aktis and we would therefore encourage you to speak to Aktis directly.’

Aktis was founded in 2013 by Rathmell and Martin. Insiders say the firm expanded rapidly before suddenly running into difficulty in the summer of last year and ‘imploding’ on March 14. Before its collapse, it had landed major contracts for Foreign Office projects in 25 countries including Iraq, Syria, Somalia, Libya and Afghanistan.

Last year, the FCO paid Aktis £24 million. Some of its work is in training security chiefs and police forces as countries rebuild after years of war. But former staff say it is they who need protection.

One ex-manager said: ‘You can’t just run a company into the ground like this, recklessly or otherwise, and walk away like nothing has happened, skipping off into the sunset. People’s lives have been ruined.’

Aktis Strategy held a 'boozy three-day retreat' for 110 staff at the De Vere Wokefield Estate in September 2017

Aktis Strategy held a 'boozy three-day

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