GlobalHue the agency accused of over-billing the Department of Tourism has suggested criticism of its expenditures by a business website is driven by racism.

In a statement in the 'Comments' section of BNET (bnet.com), GlobalHue criticised an article which said the agency's advertising spend on minority channel TV One was "weird".

According to BNET yesterday: "The agency also hinted, as it has in the past, that criticism of its billing and expenditures is driven by racism."

GlobalHue posted the following note on BNET: "… the article itself only focused on specific expenditures found to be 'weird' or essentially those directly targeting African Americans as opposed to the general market.

"The article completely overlooked the vast majority of expenditures targeted toward other consumer segments. We wonder if these were deemed 'weird' because there is a belief that they would be ineffective in delivering an effective growth in tourism volume and spending in Bermuda."

Commenting on whether its spending in minority media was proportional to that in mainstream outlets, GlobalHue said: "Expenditures on Gospel Music Channel and the Baptist Voice represented only 2.2 percent of the overall media budget. … Expenditures on minority-targeted media TV One and Latina magazine represented only 7.5 percent of the overall media budget."

In February, Auditor General Larry Dennis produced a report on GlobalHue's expenditures and billings for the $13 million Bermuda Tourism account.

It stated the account was overbilled by $1.8 million and that the agency had used a media buyer (Cornerstone) whose commissions had run as high as 181 percent. The report also said the agency had failed to return discounts and credits to the Department of Tourism.

GlobalHue, in a breakdown of its ad spend, reported $200,000 was spent advertising Bermuda on the Gospel Music Channel; $525,000 on minority channel TV One; and $87,000 in Latina magazine.

Another $357,531 was spent in the New York Times; $308,270 on Time Warner's Manhattan cable network; and $44,983 in bridal/honeymoon magazines.

BNET a website which offers advice to managers and business professionals, stated yesterday: "Readers should follow the links in this item and in BNET's coverage and decide for themselves whether GlobalHue's handling of the Bermuda account is legit or not."

Writer Jim Edwards, a former managing editor of Adweek, then said: "In addition, note that GlobalHue's statement accuses me of racism for questioning its expenditures: '… perhaps you consider that these ethnic targets lack the interest or ability to travel to Bermuda. Or maybe there is the notion that … targeting African Americans may not actually have any basis in legitimate marketing'."

Mr. Edwards said: "For the record: There is nothing wrong with targeting African Americans with tourism ads (as if that even needs to be said). What is at issue is whether the money spent is proportional to the return it earned in terms of driving tourists to the Island.

"Put simply, are Bermuda visitors more likely to be Gospel Music Channel watchers or New York Times readers?

"At every step of this controversy, when GlobalHue's handling of this account has been criticised, the agency has suggested that its critics are driven by racism.

"I'll repeat what I wrote in March: This behaviour is repugnant. Clients and taxpayers have every right to examine agency books; they should not be implicitly accused of racism when they notice that an agency's numbers don't add up and the shop happens to be owned by a black man."

GlobalHue has offices in Detroit, New York and California. The company's chairman and CEO is Don Coleman, who is reportedly a friend of Premier Ewart Brown.