Keep this fresh as you read the rest of the story: The University of Louisville Foundation paid Peritus Public Relations $787,000 in 2009 and $1.2 million in 2010.
On to the story…
KRS OBJECTION REVEALS SEVEN COUNTIES HIRED PR FIRM A YEAR BEFORE BANKRUPTCY
Kentucky Retirement Systems has filed an objection to a motion by Seven Counties Services to be compensated for hiring a PR firm in connection with its bankruptcy case and to retain the firm.
In its objection filed yesterday, KRS said documents filed by Seven Counties showed that Seven Counties hired Peritus Public Relations in March 2012, a year before it filed for bankruptcy. In what KRS termed as an “obtuse” description, Seven Counties said it had hired the Louisville PR firm to “provide public relations and public affairs support…for Seven Counties’ effort to affect changes in its involvement in the Kentucky Retirement System.”
KRS noted that Seven Counties has incurred nearly $12,000 in expenses from Peritus. “Debtor should be required to file a detailed explanation of these expenses. This is almost triple the proposed monthly retainer and a detailed explanation is in order.”
Referring to Seven Counties’ failure to make required contributions, KRS says, “While Debtor has made this unilateral – and KERS maintains unlawful decision – it now wants to spend money on a public relations firm, ostensibly to spin its message to various groups. KERS objects to this use of estate resources.”
It concludes: “Debtor should devote its resources to meeting existing statutory obligations rather than retaining someone to spin the Debtor’s story or develop a comprehensive lobbying plan. The Motion should be denied.”
(Well said, KRS. In what bizarro world is it appropriate for taxpayer money to be used to influence a decision supporting one public agency to the detriment to another?)
That’s right. Kentucky Retirement Systems attacked Seven Counties Services for spending $12,000. That’s, what, 1/100th the amount the UofL paid?
This is why Kentucky can’t have nice things.