The tit-for-tat exchanges between the Petaling Jaya Municipal Council (MPPJ) and its critics over the billboards scandal have taken another twist.

Several advertising companies have contested a claim by the council's sports club that the controversial RM10,000 fee per billboard was at the agencies' own instigation.

In the latest exchange, advertising companies denied a claim by MPPJ Sports and Culture Club assistant director Redzuan Sintol that they were the ones who had mooted the idea of making donations in exchange for billboard licences.

Last Saturday, The Sun quoted Redzuan as saying that contributions to the club were all voluntary and "not forced down the throats" of the agencies.

He also claimed that it was the agencies that had first came up with the idea of helping the club.

'Statement incorrect'

A senior executive of one company, who spoke on condition of anonymity, said the proposal had been made by the council during a meeting on Feb 4, at which MPPJ officials and representatives of various ad agencies were present.

"Redzuan is incorrect. At no time did the ad agencies come up with the proposal. It was only after MPPJ set the RM10,000 sumbangan (donation) per billboard that some agencies offered other forms of sports sponsorship in exchange for billboard rights," said the executive.

According to the minutes, the former MPPJ president Emran Kadir was noted to have fixed the amount at RM10,000 for every advertising board, with the additional proviso that companies unable to afford the fee should contact the sports club president directly.

However, there was no mention if this decision had come about in response to any particular proposal by the ad agencies. (Emran has since been promoted to head the Public Services Commission).

The advertising executive said Redzuan's reaction was a likely outcome of the club feeling the heat over recent allegations that MPPJ had given it authority to manage the majority of billboards in Petaling Jaya.

"Redzuan has changed his story because of complaints against MPPJ. They want this thing to die down, so of course they say there is nothing wrong with the deal," the executive said referring to last Sunday's press report quoting Menteri Besar Mohd Khir Mohd Toyo defending the council's actions.

'Operationally unviable

'

Another advertising executive, who also declined to be named, said the RM10,000 could not have been proposed by ad agencies as such a rate was operationally unviable.

"This amount is just too pricey for agencies. Generally, with construction costs, the agencies would suffer losses for several years," he said.

The executive expressed doubts over MPPJ claims that advertising agencies unable to contribute to the sports club would be able to obtain licences via the normal application channels.

"Naturally, it would be easier for companies who make contributions to get the billboards. How would smaller companies survive competition like this?" he asked.

The executive also questioned the MPPJ's decision to accept a reported RM3 million donation from Kurnia Outdoor Sdn Bhd, a partly foreign-owned company, in exchange for the rights to operate 30 strategic billboards and overhead bridge advertising sites.

"When the matter was raised during the meeting earlier this year, all other companies objected to this. This is a foreign-backed firm so they have a lot of resources. Also, it did not seem fair that some companies have had to give up their existing sites to this company," he said.

'Unusual deal'

The executive said such deals to give bulk licences to one company was not unusual in the advertising industry, although this was the first time that other local companies were made to give up their licences to another company.

"Previously, such deals only allowed companies to choose new sites but now they are terminating existing licences. We objected to this because we had existing contracts with our clients and were liable to be sued for breach of contract. So we had then to send in appeals to MPPJ," he added.

The MPPJ billboards scandal came to light three weeks ago after a columnist in The Sun raised questions over the transfer of billboard management to the sports club and brought to light the imposition of the RM10,000 fee per billboard.

Following a call by Mohd Khir for the matter to be investigated, current MPPJ president Abdul Karim Munisar called a press conference denying any such transfer of power. He insisted that the donations was made voluntarily by ad agencies to support council's sports activities.

Last Sunday, he was quoted in The Star as saying that the press had misunderstood the issue and that the money collected from the ad agencies was "for the benefit of the people in Petaling Jaya".

He also said the council would table a full report on the billboards and the revenue structure and open its board meeting on Aug 30 to the press.