Associated Press' Bolivian Reporter - Conflict of Interest FAIR-L Fairness & Accuracy in Reporting Media analysis, critiques and news reports ACTIVISM UPDATE: AP's Inadequate Investigation Bolivia reporter's conflicts glossed over November 2, 2000 In an October 26 Action Alert, FAIR reported that the Associated Press' Bolivia correspondent, Peter McFarren, was resigning amid revelations of clear conflicts of interest. (See http://www.fair.org/activism/ap-bolivia.html .) McFarren had long had a significant involvement in Bolivian politics-- a situation that went unnoticed even after an expose by Narco News Bulletin, until FAIR called the wire service to request comment on McFarren's status. In our Alert, FAIR urged readers to ask AP for a full investigation of these conflicts and how they may have impacted McFarren's reporting. The same day that the FAIR alert went out, AP released a story on McFarren's resignation. However, the report glossed over key aspects of the case. (The full text appears at the end of this message.) AP acknowledged that McFarren had publicly promoted a private water project that would financially benefit the reporter's foundation. But, AP wrote, McFarren has "never written about the water project for AP." While technically true, the claim is more an indictment of McFarren and the wire service than a defense. Since last April, when the intense struggle over water rights became one of Bolivia's biggest news stories, McFarren has filed several reports about water policy, including three such stories in the last six weeks. The privatization of water-- one of the key issues at the root of large-scale protests-- was a necessary precondition for the project McFarren was promoting. To report on the water protests without disclosing his personal stake in the issue is a gross violation of journalistic standards. The AP reports McFarren's claim that a speech he gave on the water project was delivered not to the Bolivian legislature, but to "an organization of community leaders" who happened to be "in a Bolivian congressional building." The AP does not, however, note McFarren's admission to Narco News that he works "pro bono" as a "promoter of the water export law," nor does it note that McFarren's presentation explicitly called for passage of "a specific law." These details are relevant to any assessment of whether or not McFarren was in fact lobbying the legislature, and should have been included in the AP's story. In addition, the AP story says nothing about how McFarren's supervisors could have been, as they claim, unaware of his activities. Narco News reports that McFarren is "a near mythical player in the highest levels of Bolivian society," often covered in the La Paz press' society pages "as he rubs elbows socially with... the foreign diplomatic corps, the commander of the Bolivian armed forces and other officials." AP fails to report on additional McFarren projects that may have compromised his, and thus AP's, reporting. A simple search of the Nexis news database and a look at McFarren's Quipus Foundation website reveal that McFarren has for years been involved in projects dependent on numerous government agencies and corporations. A favorable 1997 profile in the publication Americas (11/21/97) stated McFarren "is perched on the pinnacle of a cultural-publishing-media-philanthropic conglomerate, perhaps the only one of its kind in the world." According to the profile, McFarren is also "a founder and board member of the Bolivian Export Foundation." Quipus, another foundation that McFarren created and presides over, boasts $6 million in support from the city government of La Paz, Bolivia's capital, and also receives funds from the country's national government. Other contributors acknowledged on the foundation's website include the Netherlands, Spain, Canada, Germany, Mexico, the World Bank, USAID, USIA, IBM-Bolivia and American Airlines. A reporter whose projects are so dependent on the good will and largesse of so many powerful governments, agencies and corporations necessarily undermines his independence and impartiality. All of this information was easily available to AP when it published its brief, inadequate report on McFarren on October 26. The public deserves to know the truth-- that AP's Bolivia correspondent was, for all practical purposes, a conflict of interest disguised as a journalist. And the public deserves total disclosure, including a report on how McFarren's financial and political involvements may have compromised AP reporting from Bolivia. AP's Code of Ethics advises subscribing media outlets to "report matters regarding itself or its personnel with the same vigor and candor as it would other institutions or individuals." One would hope AP does not claim that its piece on McFarren meets that standard. ACTION: Urge the Associated Press to conduct and publish a more rigorous investigation into McFarren's conflicts of interest, and explain how they were overlooked by the wire service. CONTACT: You can reach the AP at the following addresses: mailto:intdesk@ap.org mailto:feedback@thewire.ap.org mailto:JCeppos@knightRidder.com (Jerry Ceppos is an officer of the Associated Press Managing Editors group.) As always, please remember that your comments are taken more seriously if you maintain a polite tone. Please cc fair@fair.org with your correspondence. Read the original Narco News story at: http://www.narconews.com Read the Washington Post story at: http://www.washingtonpost.com/wp-dyn/articles/A690-2000Oct24.html ***** ASSOCIATED PRESS, 10/26/00 AP correspondent in Bolivia resigns amid conflict of interest NEW YORK (AP) A reporter for The Associated Press in Bolivia has resigned after it emerged that he made a speaking appearance in favor of a water project in that South American country. Peter McFarren, a Bolivian native who also holds U.S. citizenship, has worked for the AP in Bolivia since 1983. In September, McFarren made a presentation in the capital La Paz in favor of a proposal to export water from Bolivia to copper mining companies in Chile. The Web site NarcoNews.com reported that McFarren spoke before the Bolivian Senate on behalf of the Bolivian Hydro-Resources Corp. McFarren said his speech was to an organization of community leaders, although delivered in a Bolivian congressional building. McFarren said he was not paid and said he didn't have any connection to the corporation, but acknowledged that the project would financially benefit a foundation he has set up to build children's cultural museums in Bolivia. As proposed, money from the water project would go to a national fund for culture, education and environment. "As soon as we were aware of the facts in this matter, we moved immediately to cure a conflict of interest," said James M. Donna, the AP's vice president for human resources. "He resigned on the spot. AP rules make very clear that it is unacceptable for staff members to endorse or give the appearance of endorsing causes or political points of view." McFarren, who had never written about the water project for AP, said he had told his supervisor of his involvement with the project and that he was planning to resign from the AP if any money came in to benefit his foundation. His supervisor, Eduardo Gallardo, the chief of bureau for Chile who oversees coverage in Bolivia, said, however, that he was not aware of McFarren's efforts on behalf of the water project. ***** ---------- Feel free to respond to FAIR ( fair@fair.org ). We can't reply to everything, but we will look at each message. We especially appreciate documented example of media bias or censorship. And please send copies of your email correspondence with media outlets, including any responses, to us at: fair@fair.org . FAIR ON THE AIR: FAIR's founder Jeff Cohen is a regular panelist on the Fox News Channel's "Fox News Watch,"