The Washington Post blows the whistle on a dubious investigative website

The Washington Post published a story of paramount importance last Friday. According to reporter Elahe Izadi, a website called the Checks and Balances Project is offering the sort of deep investigative reporting that most local news outlets no longer have the resources to carry out.

But there is a huge catch. There have been some prominent instances of pay-to-play, with organzations making donations that are followed by stories that will either make them look good or their enemies or competitors look bad. Izadi writes:

When it investigated the hotel industry, it was after it had received a grant from Airbnb. A high-profile investigation into Arizona utility regulators came after Checks and Balances received money from a solar power company, the company disclosed in 2015.

Now Checks and Balances is investigating a massive hospital system in Virginia named Sentara, publishing regular stories and asking patients and employees to send tips that might reveal how the nonprofit hospital “piled up $6 billion in liquid assets,” among other issues.

These stories started appearing the same month that a medical school in a complex dispute with Sentara hired a public relations firm that happens to share a founder and financial ties with Checks and Balances.

Communities are vulnerable to a site like Checks and Balances, of course, because of the demise of local news over the past generation. If your local newspaper shut down or has been so decimated that it can’t offer more than cursory news coverage, then you’re going to be vulnerable to arrangements like this.

The Checks and Balances website touts itself as an “Investigative Watchdog Blog
Holding Government Officials, Lobbyists and Corporate Management Accountable to the Public.” Izadi is careful to point out that the project has done good work over the years, some of which has been picked up by larger media outlets. Its editor was formerly employed by USA Today. Scott Peterson, the executive director, told the Post that funders do not influence the site’s journalism — but Izadi writes that those sources are not always disclosed to readers, either. Moreover, most of its funding comes from an organization called Renew American Prosperity, which does not reveal its donors. From the organization’s website:

We encourage you to be public about your identity as a donor. We’re proud to have the support of such notable funders as philanthropist Lucy Rockefeller Waletzky, legendary entrepreneur Brad Mattson of Siva Power, Silicon Valley attorney Mike Danaher, and communicator extraordinaire Matthew Lewis.

Should you want to keep your support for Renew American Prosperity private, as do others, we also welcome your donations. Private donor support will remain strictly private, out of respect for 501(c)4 tax law that allows donors who wish to be private to remain so. We will never sell or make available to other organizations our supporter lists.

Peterson pushed back on the notion that Checks and Balances isn’t transparent, arguing that what he’s doing is no different from what mainstream outlets do when they accept advertising or, in the case of nonprofits, grants and donations. And of course these things have to be seen on a continuum. When news executives decline to report an important story because they don’t want to offend an advertiser, that’s a scandal — if the public ever learns about it. Ethical nonprofit news outlets are scrupulous about disclosing the sources of their funding, and in making it clear to funders that they will have no influence over coverage. Checks and Balances, at least as described by the Post, appears to go beyond that.

The Post’s story comes at a time when we’re also dealing with the scourge of “pink slime” journalism — community websites set up in areas that are unserved or underserved by local news outlets and that are actually controlled by partisan political interests. As I wrote last fall, most of these sites are Republican, but some are Democratic as well. What they’re not is independent, which is a key part of ethical journalism.

Coming up with funding for investigative projects, especially at the local and regional level, is incredibly difficult, and the Checks and Balances folks may have believed they could cut ethical corners without it harming the integrity of their work. But it looks like dangerous business to me, and I hope it’s not the start of a trend.

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Exposing the “‘pink slime’ journalism” of Journatic

If you care about local news, then you must listen to a report on “This American Life,” broadcast last weekend, that exposes a scandal whose importance can’t be overstated.

The story is about a company called Journatic, which produces local content for newspapers using grossly underpaid, out-of-town reporters — including cheap Filipino workers who write articles under fake bylines.

And how great is it that “This American Life,” damaged earlier this year when it was victimized by fake journalism, has now exposed fake journalism elsewhere? Here is the Chicago Tribune — a major Journatic client — lecturing “TAL” on journalism ethics earlier this year.

After you listen, be sure to read the detailed back story, written by Anna Tarkov for Poynter.org.

Unfortunately, the broadcast aired just a few days before the Fourth of July, at a time when few people were paying much attention to the news. I hope it has the impact that it should.

The star of the “TAL” segment is a journalist named Ryan Smith, who kicks things off with a  killer anecdote. Smith tells producer Sarah Koenig that he drew an assignment to write a story about a “student of the week” for the Houston Chronicle. He called the principal, who suggested he swing by the school the next day.

Smith told him he’d rather do it by phone, but he didn’t tell him the reason: he was actually some 1,000 miles away.

Both Koenig and Tarkov interviewed Journatic chief executive Brian Timpone, who apologized for nothing and spewed forth a torrent of rationalizations and excuses: the fake bylines were to protect employees from lawyers; the Filipinos don’t actually write stories (they do); there’s no value to having reporters live in the community for routine local coverage such as police-blotter news and budget updates; and Journatic is providing coverage to communities that would otherwise have none.

Well, none might be preferable to the “‘pink slime’ journalism” (Smith’s felicitous description) that Journatic produces. Moreover, if the Chicago Tribune uses Journatic stories in its hyperlocal coverage in order to suck advertising money out of pizza shops, funeral homes and other businesses, it becomes that much harder for would-be entrepreneurs to start their own local news sites.

Since the “TAL” story broke, we’ve been learning more about who’s using Journatic material. The Tribune, the Houston Chronicle, the San Francisco Chronicle and the Chicago Sun-Times have all made use of Journatic, and are now in various degrees of renouncing it.

Of more local interest: so has GateHouse Media, a national chain that owns more than 100 papers in Eastern Massachusetts — mostly weeklies, but also some dailies, including the Patriot Ledger of Quincy, the Enterprise of Brockton and the MetroWest Daily News.

According to a follow-up story by Tarkov, Journatic copy never made it into GateHouse’s Massachusetts properties. But the debt-ridden corporation is now setting up its own Journatic-like operations in Boston and in Rockford, Ill. Who knows where those honor rolls, obituaries and police logs will be coming from? (The blog post I’ve linked to suggests the centralized operations will be limited to design and layout. Tarkov’s story, though, references 10 “content providers” who will be based in Rockford.)

The media-reform group Free Press has mobilized over the Journatic revelations, with Libby Reinish summarizing the findings and Josh Stearns offering some advice on how to tell if what you’re reading is the real thing. Inevitably, Free Press has started a petition drive as well.

Unfortunately, the forces that make something like Journatic possible are very real. It’s expensive and labor-intensive to do local journalism right, and the crisis that has befallen the newspaper industry in recent years has made it that much harder. But this is truly beyond the pale. Even Patch, with its top-down, cookie-cutter approach, has journalists in each of its communities.

Ultimately, though, the solution will come from the bottom up, community by community, as is already the case with enterprises such as the New Haven Independent, the Batavian and dozens of others. Have a look at Authentically Local, an umbrella group of independent local sites organized by Debbie Galant, the co-founder of Baristanet in northern New Jersey.

Another potentially interesting experiment in local journalism will get under way later this year. The Banyan Project, begun by veteran journalist Tom Stites, will launch a test site in Haverhill to be called Haverhill Matters. The secret sauce is cooperative ownership, similar to a credit union or a food co-op. You’ll be reading more about Banyan at Media Nation in the weeks and months to come.

At one point in the “TAL” broadcast, Koenig says to Smith, “You are so fired.” It is perhaps a sign of how little the Journatic folks care about their reputation that, in fact, he hasn’t been. In an email to Jim Romenesko, Smith says it’s been business as usual, and that he’s received new assignments from his editor, who recently relocated from St. Louis to Brazil.

“I’m going to work the rest of the week,” Smith wrote, “and then resign.”