Summit Cancellation Attracts Inspector General’s Attention

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The Deptartment of Transportation’s inspector general said he will review the abrupt cancellation of the 1998 National Truck and Bus Safety Summit.

Inspector General Kenneth Mead said last week he decided to conduct the review after learning that the Federal Highway Administration was to have beenthe sponsor of the summit.

Mr. Mead said he was aware FHWA had withdrawn its support of the summit but was not aware that the agency was the organizer of the three-day program.

FHWA withdrew from its sponsorship of the summit Nov. 23, saying it was unable to get broad-based participation from all affected groups (TT, 11-30-98, p. 1).

500 people had registered for the summit, according to the Atlanta Ritz Carlton Hotel, the planned site of the meeting. Those who canceled room reservations by Nov. 30 would get their deposits back, the hotel said.

Unanswered last week were questions about the extent of FHWA’s liability to the hotel for canceling the meeting. Contracts between hotels and meeting organizers generally have a cancellation clause holding the organizer liable for a portion of the lost revenue.

“We’re very disappointed that the meeting couldn’t be held, but we won’t talk about liability,” said Ann McCarthy, the Ritz’s director of sales and marketing.

FHWA officials did not return phone calls regarding the agency’s liability.

Mr. Mead said his auditors would review FHWA’s liability to the hotel and the private companies the agency had hired to plan the meeting.

American Trucking Associations and other groups scheduled to participate in the summit planned to meet this week to discuss issues on the summit agenda and assess the viability of organizing a safety summit without FHWA sponsorship.

George Abry contributed to this report.