The 2003 contract between the U.S. Department of Education (DoE) and Ketchum Public Relations, which sparked a huge controversy in the PR profession when it was revealed earlier this year, did not violate any federal contract law or cross
the ethical line, according to a recent report released by the U.S. Inspector General.
However, the report (released April 15) does not let the DoE off lightly, saying department officials "made some poor management decisions, including the failure to provide critical information to decision makers, and exercised poor judgment and oversight,"
adding that it "most likely paid for deliverables that were never received."
The report stems from an investigation into the $240,000 Ketchum paid commentator Armstrong Williams to plug President Bush's "No Child Left Behind" school-standards law (see PR News, Jan. 26).
In a statement, Ketchum said the agency "cooperated fully" with the Inspector General's report, adding that the "vast majority of the report is consistent with our understanding of the events, and we respect the overall conclusions."