INTERNATIONAL & MULTICULTURAL ISSUE - Odwyerpr.com

IPRA members comment on board abusesBy Jack O’DwyerKey board members and past leadersof the International PR Associationhave resigned to protest what theysee as abuses in financial reporting andgovernance including the dissolution May5 of the IPRA Council, the 74-member legislatureof the group.One issue of particular contention is theelection of Johanna McDowell of SouthAfrica as President for 2012. Dissidentsclaim McDowell was wrongfully electedbased on her receiving “40 messages ofcongratulations.”They say her election should be declarednull and void because valid other candidateswere excluded; no secret ballot washeld; the voting software was “corrupted,”and the board ignored complaints ofminority board members about the conductof the election.A number of members are also in openrevolt against the leadership of staff CEOJames Holt, who at one point resigned lastyear. Dissidents feel he should not have thetitle of “CEO.”Holt appears to be back at the helmalthough some members have complainedthat his salary — about $80,000 a year —takes up about 80% of the income ofIPRA.Board members say they were ignoredThe dissolution of the Council wasdeclared at the May 6 meeting in Brusselsbut there are many members who questionthis action, noting that only the Councilcould dissolve itself.An announcement May 13 by 2011 presidentRichard Linning said the last fiveIPRA presidents, operating under the newconstitution, have submitted its report onthe membership and eligibility for electionof the new governing body and for the conductof future IPRA ballots.Dissident board members, including formerPresident Elizabeth Ananto ofIndonesia Ananto, claim they do not getadequate financial reports. They are alsoupset that Nigel Chism of the U.K. hasbeen treasurer since 2000 when there is afour-year limit for that office.Tempers have flared on both sides of thisdispute resulting in threats of lawsuits andlegal opinions obtained from lawyers. Twodissident directors have been “suspended”from the board for several months as “punishment”for not toeing the line. They disputedsuch suspensions as improper andunwarranted.Among those resigning in protest areformer directors Don Stacks of the U.S.;Jennifer Hardie of United Arab Emirates;Volker Stoltz of Germany and DavidDonahue of Australia, former Councilhead.Poor financial reportingMember services manager ClareCochrane, who was with IPRA more than10 years, was laid off because of budgetproblems, said sources. She was paid fourmonths’ salary and a “compensation” payment.Members say the Council of IPRA, “thesovereign body” of the group according toRobert’s Rules, made up of representativesfrom the 60 or so nations with members inIPRA, is being disregarded and key decisionsare being made by a few board members.A new governing setup places control inthe hands of representatives elected from“regions” rather than individual countries.A new U.K. corporation has been set up tohandle the affairs of IPRA as required byU.K. laws.There are numerous complaints thatdirectors and even officers of IPRA are notgetting full and timely financial reports.Latest figures on the IPRA website are forthe year ended Dec. 31, 2009 and show anoperating loss of £18,277 on revenues of£204,798 including £81,907 cost of salesand £141,168 administrative expenses. Netassets were £319,205, a decline of£16,101.IPRA hurt by mismanagementSome members fear the current crisis atIPRA could spell its doom or bring it to itsknees. It’s in the middle of its biggestmoney-maker, the Golden World Awards.Winners, who paid £230 per entry, willbe announced later this month and awardswill be made at a banquet in the fall.IPRA, whose membership has declinedfrom 1,000 or so to under 500, say seniormembers, has stiff competition from theEuropean Assn. of CommunicationDirectors, a corporate group founded in2006 that now has 1,600 members.IPRA had about 900 members in 2004from 90 countries and had cash of£231,336. Current membership is said tobe about 1,000.Current staff costs, including Holt’s payof about £60,000, consume 80% of totalincome, said memo by director VolkerStoltz of Germany; Srba Jovanovic ofSerbia; Hardie, and Stacks. The memo saiddirectors had been told that Holt intends tostay for another five years. JUNE 2011 WWW.ODWYERPR.COM 11