Canada freezes gov't ad spending

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[Ottawa] Canada's federal government, already investigating a scandal involving sponsorship money dispersed through ad agencies and irregularities in choosing agencies and awarding budgets, has placed a moratorium on new government ad spending until rules come into force June 1 to strengthen oversight of government advertising. The government will also cut its annual $60 million media spending by 15% for the next three years, saving $26.8 million. The moratorium will continue until the government chooses a new agency of record and puts new procurement tools in place. The freeze excludes advertising for emergencies, essential ongoing campaigns and public notices.
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