Video Mega has acknowledged that though it placed advertisements on behalf of the Ministry of Public Telecommunications, this was done on an ad hoc basis.
This was stated by veteran media expert, Russel Lancaster, who heads the operations, and who told the News Room Friday that the company did not exactly have a “client” relationship with the Ministry.
He explained that in executing jobs for the Ministry, this was usually done when the Ministry wanted emergency placement of advertisements in the media.
The company also reiterated that Minister Cathy Hughes does not participate in the running of the company.
Lancaster’s explanation of the arrangements with the Public Telecommunications Ministry comes following allegations made by the PPP that Video Mega benefitted from $10.3 million in jobs from various government Ministries.
For the Public Telecommunications Ministry, specifically, the PPP claimed payments totalling $3.3 million in 2018 for jobs executed on three separate occasions. Lancaster said that all of the arrangements were done on an ad hoc basis.
He also explained that the full payments made were not actually that of Video Mega. As is the normal operations of advertising companies, he said when payments are received from clients, it is directly passed on to the media houses that were selected for the placement of advertisements.
The advertising agency would then be issued either a 10 % or 15% commission according to standard international practice.
As such, the company said it was “disingenuous” for the PPP to say that all of the sums paid by the Public Telecommunications Ministry and others, went to Video Mega.
“The company will provide the invoices issued for the sums referred to in the PPP statement as soon as it retrieves it from its auditors,” Video Mega said in a statement.