LONDON (Brand Republic) 鈥 Ogilvy & Mather has denied it committed fraud over billing the US government for work on an ongoing anti-drug advertising campaign.
Bill Gray, co-president of the agency鈥檚 New York offices, said the company had done nothing wrong. 鈥淚t is the policy of Ogilvy to ensure that billing for services is both fair and appropriate. We have charged to the industry standard and if we learn of any accounting problems we will address them and make any necessary adjustments.鈥
His comments come as part of a government inquiry from its General Accounting Office after the agency was accused of overcharging the government.
A project officer for the anti-drug office complained that the agency鈥檚 time sheets had been altered after Gray complained about a lack of revenue. Ogilvy has been handling media planning and buying for a range of TV and press ads aimed at cracking down on youngsters taking drugs.
Despite the allegations, a full-scale audit of the agency鈥檚 contract has not been done, angering politicians who demanded Gray be questioned about his agency鈥檚 practices.
Officials of the anti-drugs office said that $7.8m of the $23m Ogilvy has charged since January last year has not been paid due to 鈥渦nanswered questions鈥.
But some officials said the problems were not fraud, but reflected a need for better organisation and clarity within government.