Controversial tourism contract being canceled

The two-year, $720,000 contract with Ackermann PR Inc. will be terminated effective Sept. 30, Whitaker confirmed to WTVF-TV of Nashville. The firm is run by Knoxville public relations executive Cathy Ackermann.

Ackermann was on Gov. Phil Bredesen’s transition team after being part of an outspoken group of Republicans that supported Bredesen’s candidacy in 2002.

Whitaker said canceling the contract would save taxpayers about $125,000 a year by having state employees handle the tourism campaign instead of paying a private contractor.

“As per the governor’s request, the department has reviewed its marketing resources for the outsourcing and focus of news distribution and production services for the next 12 months. The department will bring in house the operation of a redefined News Bureau,” the Tourism Department stated in a release to WTVF. “… The department would like to thank Ackermann for providing an excellent launch of the News Bureau as well assisting in developing a transition plan over the next 90 days beginning July 1.”

A state review ordered by Bredesen and conducted by Attorney General Paul Summers and Treasury Comptroller John Morgan found in May that the contract was properly administered.

Bredesen gave Whitaker a vote of confidence after the report was released, saying he was satisfied that the Tourism Department properly handled the contract bids.

The audit report did not evaluate the contract performance of Ackermann, and critics had questioned the effectiveness of the program.

Summers and Morgan, who offered some suggestions for improving the transparency in state bids, said they did not believe Whitaker or Ackermann influenced the selection process.

Before taking the tourism post, Whitaker was marketing chief for Dollywood amusement park in Pigeon Forge.