Media brokers, bodies that solicit advertising from media-buying agencies and the government on behalf of about 120 community radio stations, were accused in Parliament this week of failing to pay operators sufficiently for government advertisements. The Media Development and Diversity Agency, which reported the matter to Parliament, is investigating the claims.
Community radio stations across the country combined account for more than 8-million listeners a day, according to the South African Advertising Research Foundation.
National Community Radio Forum chairman Sonnyboy Masingi said on Wednesday an audit of media brokers would determine which ones had committed fraud. He said that without advertising revenue their stations were unsustainable.
Brokers sign up radio stations with promises of securing advertising for them, he said. The broker then approaches state departments, soliciting advertising for the stations it represents and secures advertising contracts. However, the broker either does not commission the adverts from the stations or only does so from a few, and then keeps most of the money.
The agency's programme head, Nkopane Maphiri, said on Wednesday it had received complaints about a few brokers that were alleged to have withheld payment.
The agency is a statutory body tasked with encouraging ownership and control of, and access to, media by historically disadvantaged communities. Maphiri said that the agency was made aware of the practice during oversight visits to six provinces with the parliamentary portfolio committee on communication last year.
"This was the single most critical issue raised by (community radio stations and small commercial printers) throughout the provinces. They struggled to raise advertising and when they did they were not paid (in full) by the brokers."
The complaints have led to an online booking link being development by the agency and the Government Communication and Information Service, through which small and community media operators can engage directly in order to access government advertising spend. Once the investigation is completed the agency will report its findings to the portfolio committee.
Masingi said the problem was due largely to the fact that media brokers were not regulated.
Media broker Judy Milne, MD of The Media Connection, said the system was open to abuse because of a lack of regulation. Her firm deals in private-sector ads only, but "we've seen how easily people are cheating community radio stations".
Media broker Ike Meletse, MD of Agile Media, said he hoped regulation would be improved.
Source: Business Day via I-Net Bridge
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