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Bermuda Takes a Shot at Critics of Globalhue's No-Bid Tourism Account

By Jim Edwards | May 12, 2009

Bermuda’s official announcement of the renewal of its Tourism advertising contract with Globalhue contained a snide footnote directed at anyone who asks why the agency was rewarded after being accused of overbilling the $14 million account by $1.8 million. Here’s what public affairs officer Malika Musson put into the statement:

In April of this year Cabinet made a ground-breaking decision to put Government-awarded contracts in the Official Gazette to support the spirit of transparency and good governance.  It was also enacted with the hope of protecting contractors from having their reputations publicly sullied for partisan political purposes …

First, the contract was awarded without competitive bidding — a process that qualifies as neither transparent nor good governance. The lack of bids is interesting because if you read this 2006 article in Mid-Ocean News about how Globalhue got the business in the first place, it was in a competitive bidding process. (Although you’ll note that Globalhue’s primary qualification for the job was its owner’s campaign donations to Al Sharpton, an ally of premier Ewart Brown.)

Second, what has sullied Globalhue’s reputation is not partisan political bickering, but the fact that an audit by Bermuda’s own authorities turned up financial discrepancies on the account.

Lastly, a new wild card has been thrown into the mix. Auditor general Larry Dennis, who discovered Globalhue’s billing problems, has been replaced by Heather Jacobs Matthews (pictured), a 27-year Bermuda government employee. The move comes as Globalhue’s books are in the midst of a second audit of the tourism account.

If she is a Brown loyalist, then all Globalhue’s problems will magically go away. If she isn’t, it will be interesting to see what she turns up.

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Jim Edwards, a former managing editor of Adweek, has covered drug marketing at Brandweek for four years, and is a former Knight-Bagehot fellow at Columbia University's business and journalism schools. Follow him on Twitter or send him an email.

BNET User Analysis

Web Buzz:
  • GlobalHue Accused of Overbilling Bermuda Account; Agency Plays Race Card

    BNET Advertising - 250 days 22 hours 30 minutes ago

    Don Coleman's GlobalHue is accused of ripping off the government of Bermuda by overbilling its $13 million tourism advertising contract. In a report by Bermuda auditor general Larry Dennis (pictured), GlobalHue is accused of: Cornerstone's average commission charged was 51 percent, the report says, and the average media industry commissions tend...

  • GlobalHue Wins New $28 Million Bermuda Contract Despite Overbilling Allegations

    BNET Advertising - 200 days 7 hours 48 minutes ago

    Globalhue, the agency accused of overbilling the $14 million Bermuda Tourism account by $1.8 million, has been punished by the island client with another $28 million in business. The Bermuda Royal Gazette reported Tuesday that Globalhue has been awarded a new, two-year, no-bid contract to tout the island, worth $14 million in billings for each...

  • Globalhue Linked to "Possible Criminal Activity" by Ex-Bermuda Auditor

    BNET Advertising - 154 days 22 hours 34 minutes ago

    Globalhue’s overbilling of the Bermuda Tourism account is a “fact” that represents “possible criminal activity,” according to the island’s former auditor general, Larry Dennis. Dennis’ remarks came after he was accused of being used to politically discredit Bermuda’s premier, Ewart Brown, who also doubles as the nation’s...

  • Globalhue Cited in Attempt to Force Out Bermuda Premier

    BNET Advertising - 197 days 22 hours 53 minutes ago

    If the ad agency business had 10 commandments, this would be No. 1: Thou shalt not do anything that might get thine client fired. But Globalhue’s handling of the $14 million Bermuda Tourism account has inched its client, Bermuda premier Ewart Brown, closer to that fate. An extraordinary series of stories in the feisty Bermuda press over the...

  • 6857: Bermuda Short.

    Multicultural Classics - 154 days 13 hours 25 minutes ago

    Don’t expect Jim Edwards of BNET to get invited to Bermuda anytime soon. Ditto Southfield, Michigan, the home of Globalhue. Edwards continues to report on the alleged scandals surrounding Globalhue and the Bermuda Tourism account. In the latest news, Bermuda’s former auditor declared it’s a “fact” that Globalhue overbilled the...

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