Pubdate: Wed, 06 Feb 2002
Source: Chicago Sun-Times (IL)
Copyright: 2002 The Sun-Times Co.
Contact:  http://www.suntimes.com/
Details: http://www.mapinc.org/media/81
Author: Associated Press

OGILVY & MATHER AGREES TO SETTLE CLAIMS IT OVERBILLED DRUG CZAR

The U.S. subsidiary of one of the world's largest advertising agencies has 
agreed to pay $1.8 million to resolve claims that it overcharged the 
federal drug czar's office.

Ogilvy & Mather North America, a unit of WPP Group PLC, agreed to settle 
claims that it overcharged the Office of National Drug Control Policy, the 
Justice Department said. The ad agency will pay $689,744 in cash and revise 
its claims for reimbursements by nearly $1.2 million.

The settlement resolves allegations that Ogilvy's labor charges for work 
performed in 1999 and 2000 were based on inaccurate time sheets submitted 
by employees, and that the company's management did little to ensure the 
billings were accurate.

The allegations became public last summer when Congress' investigative arm, 
the General Accounting Office, revealed that it had referred alleged 
overbillings to the Justice Department.

Company officials couldn't be reached for comment. But last summer, the 
company said it had identified the mistakes and took them to the government.

The drug czar's office hired Ogilvy more than three years ago to handle the 
placement of anti-drug spots that aired on network television, on cable 
stations such as MTV and on the Internet. The three-year contract was 
valued at $684 million.
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MAP posted-by: Beth