The recent controversy over the MPPJ's transfer of its billboard licensing rights to its sports club has been discovered to involve more than the RM10,000 mandatory 'contribution' fee per billboard that has been slapped on advertising companies.

A senior staff at an outdoor advertising company has said today that the ad companies are still to foot some RM3,000 in licensing fees which were applicable before the transfer of rights.

The ad executive told malaysiakini on condition of anonymity that most advertising companies are still required to continue paying RM2,400 for each licence plus a RM480 in service fee per billboard, despite having to 'contribute' the newly implemented RM10,000 fee to the Petaling Jaya Municipal Council (MPPJ) sports club for the right to operate a billboard.

"Previously, we applied directly to the MPPJ and pay a yearly bill. The RM2,400 fee-and-service charge had been the going rate for a number of years but with the transfer now, we have to pay RM10,000 per billboard in addition to those charges," the executive said.

The latest revelations has raised the amount of money at stake in the scandal over the MPPJ's transfer of its rights to license out billboards to its sports club.

The issue came to light two weeks ago after a columnist in The Sun raised questions over the transfer, and brought to light the imposition of a new mandatory RM10,000 fee per billboard payable to the council's sports club.

Some exceptions

With the new fees structure, the ad executive said that profit margins for companies have been eroded to a bare minimum.

"For package deals, the price per year can be as low as RM12,000 for a billboard. On average, companies make between RM15,000 to RM20,000 per billboard. On top of that, we still have to pay our overheads," the executive said.

But for those who are unable to afford the RM10,000 fee, the executive said that a negotiation is possible although the amount is still substantial.

"We can renegotiate but the fee required still ranges between RM7,000 to RM10,000. A number of companies have voiced their objections but we could do nothing because they are the authorities."

In addition to this controversy, the executive said another issue that has created dissatisfaction within the industry is the MPPJ's decision to re-assign certain billboard licences held by several companies to another company, Kurnia Outdoor Sdn Bhd.

Kurnia is said to be partly-owned by the Australian Provincial Newspapers, Australia's largest regional newspaper publisher and outdoor advertising provider.

"Some of our billboards were given to Kurnia, a foreign company. After the takeover, Kurnia also contacted some of our clients and told them to switch over to them," the executive said.

He also pointed out that two companies - Nilam Simfoni and Karisma Vista - have been exempted from the paying the sports club fees as well.

"From information exchanged with other companies, it seems that most companies have to pay the fee. We are only aware of two companies which have been exempted."

"We understand that one of these companies had a deal with the state government to carry out a campaign. The other company is a concessionaire with the Public Works Department. But if they want to implement the fees, they should do it for all companies. It is unfair for some to be exempted," the executive added.

Contradicting versions

Meanwhile, the MPPJ is likely to be embroiled in further controversy over this matter, particularly after MPPJ president Abdul Karim Munisar last week denied that any rights transfer took place and that the RM10,000 contribution was not compulsory for companies seeking to operate billboards.

His denial has since been called into question after leaked minutes from a Feb 4 meeting at the council showed claims to the contrary.

According to the minutes (copies of which were obtained by malaysiakini ), the council had determined that all its billboards and overhead bridge advertising sites would be handed over to the sports club except those held by the two companies mentioned above.

In addition, it was noted that the chairperson for the meeting had fixed a RM10,000 sumbangan (contribution) for each advertising location, with the proviso that companies that are unable to pay should contact the sports club's president directly.

On the Kurnia deal, the minutes stated that the company would be giving a RM3 million sumbangan to the sports club over three years in exchange for the right to operate 30 billboards and 15 overhead bridge advertising sites.

Abdul Karim could not be reached for comment, as he is said to be abroad.

When contacted today, a public relations officer told malaysiakini that a press conference would be held at 4pm today on the billboards issue. This was later cancelled with no reasons given.