More industry fall-out from Ketchum's participation in the Bush administration's government-funded political campaigns (the Armstrong Williams deal, et al.).

This just out from PR Week ...

Sloane & Company CEO Elliot Sloane withdrew his agency's membership in the Council of PR Firms Wednesday following Council president Kathy Cripps' comments defending Ketchum in a New York Times story.

"The reaction of the Council... disappointed me, because I would expect that the trade organization that represents our industry would be more forceful in talking about guidelines, roles and responsibilities, and ethics," Sloane said.

In the Times article published Wednesday, Cripps said that Ketchum's contract to promote the "No Child Left Behind" act by paying a commentator $240,000 did not violate the Council's code of ethics because the onus for full disclosure rested on Armstrong Williams, not the agency.

By contrast, PRSA president Judith Phair called Ketchum's situation "a shame, disturbing and harmful."

Even Armstrong Williams won't <$NoAd$> defend it. What's this PR Council's deal?