ARCON issues 7-day ultimatum to Turkish company to pay N481m debt owed to Nigerian company
The Advertising Regulatory Council of Nigeria (ARCON) has given Hayat Kimya, a Turkish company, a seven-day ultimatum to pay a N481 million debt.
This was announced in a statement released by ARCON’s Managing Director, Dr. Olalekan Fadolapo. The debt is owed to Mainsail Media Limited, a Nigerian media planning and buying agency.
The Turkish company failed to pay the debt despite several efforts by advertising industry players to resolve the debt dispute between the two companies.
What DG ARCON says
- Mr Fadolapo said the Association of Independent Media Practitioners of Nigeria (MIPAN) and the Advertising Practitioners Council of Nigeria (APCON) had also intervened but the Turkish company had still not paid the debt.
- He also recalled that Kimya’s head office in Turkey had engaged Mainsail as an independent media agency to coordinate the buying and placement of media, in collaboration with Hayat Kimya Nigeria Limited, a contract initially for 12 months to be renewed. every December.
- Outlining the debt, Mr Fadolapo said in June 2021 that Hayat Kimya allegedly received information from a whistleblower that Mainsail had fraudulently performed its media contract in collusion with a media monitoring service provider .
- He said the company’s head office opened an investigation into the matter without involving its office in Nigeria and only terminated its contract with Mainsail in September 2021.
- Speaking further, he said: ” Hayat Kimya disengaged the mainsail in November 2021; the unpaid bill at the time was 481,349,854.45 naira (four hundred eighty-one million, three hundred forty-nine thousand, eight hundred fifty-four naira, forty-Five Kobo only).
- “Hayat Kimya did not inform Mainsail’s management of the whistleblower until the meeting called by the advertising industry regulator – the Advertising Practitioners Council of Nigeria (APCON) now the Advertising Regulatory Council of Nigeria (ARCON )”, he said.
- Mr. Fadolapo noted that if Hayat Kimya did not clear the debt within the 7-day ultimatum, ARCON would be forced to revoke all advertising permissions issued to Hayat Kimya until the issue was resolved.
- He also said the regulator may withhold approval of all Hayat Kimya advertising materials until the issue is resolved and ARCON may be forced to put the company’s name in the registry’s black book. Nigerian Advertising.
- Speaking further, he said that other relevant government regulatory agencies would be called upon to investigate Hayat Kimya’s business and economic activities in Nigeria to determine whether they had been working in accordance with government regulations.
- He said ARCON could sue Hayat Kimya or his employees if they were found to have violated any provision of the law.