Posted on 07/26/2002 4:39:48 AM PDT by Wolfie
HOUSE MOVES TO BAR PAYMENT TO OGILVY FOR AD CAMPAIGN
The House of Representatives passed a bill that would effectively bar the U.S. from paying Ogilvy & Mather Worldwide for its work on the prestigious White House advertising campaign to eradicate youth drug abuse.
The decision could be a setback to the Madison Avenue powerhouse agency, a strategic adviser in the U.S. advertising effort aiming to turn teens and preteens against drugs . Only three weeks ago, the unit of WPP Group PLC of London won a new $762.1 million multiyear contract with the government. The victory appeared to assure Ogilvy that it would keep its designation as the key private player in the controversial public-health advertising effort.
Wednesday's development could put that important assignment in jeopardy if it gains support in the Senate because it could force the U.S. to replace Ogilvy with another advertising firm.
The House approved the Treasury, Postal and general appropriations bill Wednesday. U.S. Rep. Bob Barr ( R., Ga. ), a longtime critic of Ogilvy, proposed an amendment to the broad appropriations bill. The amendment, which would effectively prevent the ad agency from getting paid by the U.S. for any work on the campaign after Oct. 1, was approved in a voice vote.
A spokeswoman for the White House drug czar's office didn't return calls seeking comment. But Congressman Barr was quick to declare victory. "Today's vote sends this important message that those who misuse taxpayer dollars and defraud the public will not be allowed to benefit further," he said in a statement.
In February, Ogilvy agreed to a $1.8 million settlement to resolve civil charges that it inflated labor costs for its earlier work on the advertising program. A separate criminal investigation focusing on whether Ogilvy employees deliberately altered time sheets is still pending. Ogilvy has denied any wrongdoing.
A spokeswoman for Ogilvy said the ad agency would continue to fight for the government assignment. "We won an open and fair competition on the merits," she said.
The amendment to the broad House appropriations bill would block Ogilvy from getting paid for its work because it prevents any company that has defrauded the government from receiving taxpayer dollars. It's too soon to say whether the amendment will become law. While the broad House appropriations bill passed by a vote of 308-121 Wednesday, it now goes to the Senate, where it must also be approved.
...our elected representatives...
And I best not get started on that batch,at least not this early in the morning. Kind of hard to find a good guy here.
I'll give the Reps points for that. (Although why the Feds would ignore the fraud in the first place and award Ogilvy another contract is beyond me.)
I'd bet that a look through the FEC's records of campaign contributions by Ogilvy might be very illuminating....
WTF is the US Navy doing in charge of stuff like that?
Talk about your indicators of government bloat - this sort of crap is supposed to happen in China, with the Red Army running cell phone companies and nightclubs, but not here.
It's a sign, my friend - the end is nigh...
Too bad they also didn't insert language that prevents any federal agencies that have defrauded the taxpayers from receiving taxpayer dollars...
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