It’s a pugilistic kind of morning Monday. Mega-multicultural agency, GlobalHue, is being taken to task by their client, the Bermuda Department of Tourism Board [BDOT]. The Auditor General, Larry Dennis (pictured above), has said that he has “misgivings about the appropriateness of some payments to GlobalHue” and that the Department of Tourism may have paid $1.8 million too much to the company.
GlobalHue buys time for their client through many outlets, but one, Cornerstone Media, has caught the eye of Dennis. You see, GlobalHue pre-bills the Bermuda for the placements. Yeah and who doesn’t? The problem is that this practice is not allowed under the government’s financial rules. Plus, Cornerstone Media has allegedly not provided invoices for placements. Dennis also says that Bermuda did not receive refunds on canceled placements.
Jacqueline Reynolds, GlobalHue’s executive vice president has called the comments libelous and also said that, “Often, GlobalHue has not received payment by the BDOT in time to pay media vendors and has advanced funds to prevent a problem with vendors not accepting BDOT advertising without payment upfront.” She added that GlobalHue hired Cornerstone to purchase BDOT media with no commission charge to the BDOT.
Her final kick in the face? She said GlobalHue — which has offices in Detroit, New York and California — had an annual revenue of $800 million and Bermuda was its smallest account. “Our profits are derived from accounts other than the contract with Bermuda,” she said.
Okay, so who wants to pitch the Bermuda Tourism board? Now is the time.