UPDATE: MyTwoCensus has been informed that Jay Waite, deputy director of the US Census Bureau, was also involved in procuring these contracts. According to his biography, “Waite is the visionary and architect of the 2010 reengineered census. Using hand-held computers for data collection, a major expansion of technology, will dramatically change the way censuses will be conducted for decades to come.”
Well, what scandal have we stumbled upon this time?
Upon doing some further research into DraftFCB’s massive $200 million advertising/media contract with the Census Bureau, I learned that this firm’s parent company, Interpublic Group was forced to pay a $12 million fine to the SEC for accounting fraud in 2008 and also owns a 49% stake in GlobalHue, an ethnic media PR firm that has been assigned to do the Latino/African-American outreach for the 2010 Census. But back in March of this year, GlobalHue was accused of overbilling the Bermudan government by $1.8 million on a $13 million contract. The Bermudans claim that GlobalHue:
- Overbilled the account by $1.8 million.
- Prebilled the government in violation of its own rules.
- Didn’t keep invoices and billing records.
- Didn’t return discounts and credits to the client.
- Used a media buyer, Cornerstone, that charged commissions of up to 181 percent.
Have similar problems been going on in America with little oversight? Maybe the GAO and IG’s offices will soon let us know! (For now, click here to download the original accusations from Bermuda. H/t to Jim Edwards of BNET for providing these docs.)
An confidential source informed MyTwoCensus that New York Congresswoman Carolyn Maloney’s office had quite the hand in procuring this contract for DraftFCB/Interpublic Group/GlobalHue (ironically she accused the Bush administration of trying to sabotage the 2010 Census), so tomorrow we’re going to give them a call to learn more information. Additionally, Steven J. Jost, the Census Bureau’s new Communications Director (he also served in this role when Ken Prewitt ran the Census Bureau during the later Clinton years), has significant ties to Maloney’s office.
MyTwoCensus has a pending FOIA request to obtain the details of these contracts.
*As this is an ongoing investigation, MyTwoCensus asks for any individual with further information about this case to please come forward. We remind our readers that we maintain full confidentiality with our sources in all circumstances.