16.5.11

Telegraph 16 5 2011: PR firm in Facebook controversy promotes real estate for Spanish government

PR firm in Facebook controversy promotes real estate for Spanish government

The PR company hired by Facebook to spread anti-Google stories in the US press is also employed by the Spanish government to promote the sale of its real estate to UK investors, it can be revealed.

 
Web of intrigue: the PR firm hired by Facebook to spread anti-Google stories also works for the Spanish government


9:08AM BST 16 May 2011
Burson-Marsteller (BM), headquartered in the United States and with offices in 67 countries worldwide, was employed by Spain's secretary of state for housing, Beatriz Corredor, to assist with the launch of Spain's international property roadshow that kicked off in London last week.
Since then it has emerged that BM, on behalf of Facebook, approached well-known blogger, Christopher Soghoian, urging him to investigate Google's privacy policy in exchange for getting the piece published on influential sites such as The Huffington Post and The Washington Post.
BM has terminated its contract with Facebook but continues to work on behalf of the Spanish government, as its ministers attempt to pitch the sale of the country's 700,000 unsold holiday homes to European and Russian investors in a bid to kickstart a flailing economy.
BM's PR consultants were in attendance at the first roadshow event, held in London last week, and were responsible for identifying and contacting local media and raising publicity for the event entitled:"Look. Think. Invest. The Spanish Real Estate Market in your hands."
President of BM's Spanish office Carmen Valera, said: "The way the work was done for Facebook was not at all standard operating procedure and was against our policies, and the assignment on those terms should have been declined.
"BM started working on behalf of the secretary of state of housing to coincide with the celebration of London's event within the framework of the international information tour, to report on the current situation of the Spanish real estate market.
"BM identified the local journalists to be invited to the event and contacted them.
"It is the first project that Spain has undertaken for the Spanish government in the present year and the first time with the secretary of state for housing."
The London event received a poor reaction from UK investors who considered the value of Spanish land to be overvalued, despite the presentation revealing prices had fallen up to 50 per cent in certain coastal regions.
Charles Svoboda*, a former head of Canadian Intelligence and veteran campaigner against the unfair expropriation of land by the Spanish authorities, said: "I can't say I'm surprised. The PR firm in question also has links [interlocking officials on their respective management teams] with property-selling firms here in Spain.
"They would do better to hound the authorities to do a better and more honest, transparent job when it comes to dealing with property related problems that abound in Spain, rather than to lure more unwary buyers into the money trap that is much of Spanish real estate.
"This sort of control goes with the territory, it seems. Free speech is a luxury afforded only to those who spout messages the authorities wish others or themselves to hear."
Telegraph Expat's Spanish Planning Scandal campaign is supporting the thousands of expats who have been affected by the illegal homes crisis in Spain. You can find all the latest news on the situation here.

*Charles Svoboda notes that " I don't know where my status as "Former head of Canadian Intelligence" came from. True, I was DG at CSIS ( Canadian Security Intelligence Service) (1991-96) after I left the diplomatic service, and wrote public articles, commentaries, etc. in that capacity. That is clear from "googling" my name. But that's not the same thing, as this piece suggests. And it's not relevant here anyway. Otherwise, apart from the facts that there are many more than 700,000 unsold houses here, maybe almost
double that number according to some reports, and that the complex "expropriation" process isn't used, rather it's an out right land and money grab, the Telegraph is performing a useful and timely service to its readers with such articles. The control I was referring to, put in its context, had to do with how the launch of the road show was rigorously stage managed in London by the PR firm and the Spanish Embassy, to minimize any chance of disruption or any other views about Spanish property being expressed".