In The Goblet of Fire - Chapter 13: "Mad-Eye Moody", Malfoy reads an article from the Daily Prophet. Now I know Rita is infamous for her exaggerated accusations, but this is a straight up lie. I mean it doesn't make any sense.
Arthur was just doing his job, granted he was covering for Moody so that the Improper Use of Magic Office couldn't get to him. But still, he charged Moody for misuse of Muggle artefacts, right? So how is that called 'embarrassing the ministry'? And in any case, if the Improper Use of Magic Office had got their hands on Moody, they would have had to modify the policemen's memories too.
So how in any way did Arthur do any wrong? Does she mean that by letting Moody go off easy, when he clearly had a record of craziness, Arthur disregarded or let down the ministry laws?
Sources from the book-
“Arthur!” she called up the staircase. “Arthur! Urgent message from the Ministry!”
Harry flattened himself against the wall as Mr. Weasley came clattering past with his robes on back-to-front and hurtled out of sight. When Harry and the others entered the kitchen, they saw Mrs. Weasley rummaging anxiously in the drawers – “I’ve got a quill here somewhere!” - and Mr. Weasley bending over the fire, talking to - Harry shut his eyes hard and opened them again to make sure that they were working properly.
Amos Diggory’s head was sitting in the middle of the flames like a large, bearded egg. It was talking very fast, completely unperturbed by the sparks flying around it and the flames licking its ears.
“… Muggle neighbors heard bangs and shouting, so they went and called those what-d’you-call-’ems - please-men. Arthur, you’ve got to get over there — ”
“Here!” said Mrs. Weasley breathlessly, pushing a piece of parchment, a bottle of ink, and a crumpled quill into Mr. Weasley’s hands.
“- it’s a real stroke of luck I heard about it,” said Mr. Diggory’s head. “I had to come into the office early to send a couple of owls, and I found the Improper Use of Magic lot all setting off — if Rita Skeeter gets hold of this one, Arthur —”
“What does Mad-Eye say happened?” asked Mr. Weasley, unscrewing the ink bottle, loading up his quill, and preparing to take notes.
Mr. Diggory’s head rolled its eyes. “Says he heard an intruder in his yard. Says he was creeping toward the house, but was ambushed by his dustbins.”
“What did the dustbins do?” asked Mr. Weasley, scribbling frantically.
“Made one hell of a noise and fired rubbish everywhere, as far as I can tell,” said Mr. Diggory.
“Apparently one of them was still rocketing around when the pleasemen turned up -”
Mr. Weasley groaned.
“And what about the intruder?”
“Arthur, you know Mad-Eye,” said Mr. Diggory’s head, rolling its eyes again. “Someone creeping into his yard in the dead of night? More likely there’s a very shell-shocked cat wandering around somewhere, covered in potato peelings. But if the Improper Use of Magic lot get their hands on Mad-Eye, he’s had it — think of his record — we’ve got to get him off on a minor charge, something in your department — what are exploding dustbins worth?”
“Might be a caution,” said Mr. Weasley, still writing very fast, his brow furrowed. “Mad-Eye didn’t use his wand? He didn’t actually attack anyone?”
“I’ll bet he leapt out of bed and started jinxing everything he could reach through the window,” said Mr. Diggory, “but they’ll have a job proving it, there aren’t any casualties.”
“All right, I’m off,” Mr. Weasley said, and he stuffed the parchment with his notes on it into his pocket and dashed out of the kitchen again.
Mr. Diggory’s head looked around at Mrs. Weasley.
“Sorry about this, Molly,” it said, more calmly, “bothering you so early and everything... but Arthur’s the only one who can get Mad-Eye off, and Mad-Eye’s supposed to be starting his new job today. Why he had to choose last night… ”
Rita Skeeter's article-
FURTHER MISTAKES AT THE MINISTRY OF MAGIC
It seems as though the Ministry of Magic’s troubles are not yet at an end, writes Rita Skeeter, Special Correspondent. Recently under fire for its poor crowd control at the Quidditch World Cup, and still unable to account for the disappearance of one of its witches, the Ministry was plunged into fresh embarrassment yesterday by the antics of Arnold Weasley, of the Misuse of Muggle Artifacts Office.” Arnold Weasley, who was charged with possession of a flying car two years ago, was yesterday involved in a tussle with several Muggle law-keepers (“policemen”) over a number of highly aggressive dustbins. Mr. Weasley appears to have rushed to the aid of “Mad-Eye” Moody, the aged ex-Auror who retired from the Ministry when no longer able to tell the difference between a handshake and attempted murder. Unsurprisingly, Mr. Weasley found, upon arrival at Mr. Moody’s heavily guarded house, that Mr. Moody had once again raised a false alarm. Mr. Weasley was forced to modify several memories before he could escape from the policemen, but refused to answer Daily Prophet questions about why he had involved the Ministry in such an undignified and potentially embarrassing scene.