Pubdate: Thu, 05 Oct 2000
Source: USA Today (US)
Copyright: 2000 USA TODAY, a division of Gannett Co. Inc.
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Website: http://www.usatoday.com/news/nfront.htm
Author:  Kevin Johnson, USA Today

DRUG OFFICIALS DEFEND ADVERTISING PARTNER

WASHINGTON -- The White House drug policy office is defending its major 
private partner in a billion-dollar, anti-drug campaign amid allegations 
the advertising firm overbilled the government for its work.

Don Maple, senior policy analyst for the Office of National Drug Control 
Policy, and drug czar Barry McCaffrey said Wednesday that the government 
remains confident in the agency, Ogilvy & Mather, and was not ending its 
deal with the New York City firm.

''We don't believe there is fraud,'' Maple said during a break in a 
congressional hearing in which lawmakers suggested the allegations could 
hurt the anti-drug campaign.

Still, the government continued to withhold $18 million in payments for 
what it calls questionable billings by its advertising partners -- 
including $13.5 million by Ogilvy.

The General Accounting Office (GAO), Congress' auditing arm, is 
investigating the drug policy office's contracting operations. Ogilvy 
President Bill Gray said the government was billed within industry standards.

Meanwhile, U.S. investigators who have examined McCaffrey's relationship 
with advertising contractors found that the public relations firm of 
Fleishman-Hillard, which has a $10 million piece of the anti-drug media 
campaign, provided McCaffrey free advice on a private matter. A GAO report 
found that Fleishman-Hillard counseled McCaffrey, a former Army general, on 
how to respond to a magazine article critical of his actions in the Persian 
Gulf War. A McCaffrey spokesman said ''nothing inappropriate'' occurred.
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