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Tanzania: Media Owners Issue say no more ads to Defaulting Advertising Agencies

Nearly 10 advertising agencies, which owe media organisations about Sh3 billion in outstanding payments, were yesterday given until September 30 to pay up or be denied advertising services. The Media Owners Association of Tanzania (Moat) executive secretary, Henry Muhanika, said that should the agencies not comply, their members would bar them from placing advertisements in the newspapers, radio and television.

In a signed press statement issued in Dar es Salaam, Muhanika said some of the agencies had withheld payments for up to six months, despite having been paid by their clients. The media companies are demanding that payment for the period from January to June to released immediately. Advertising agencies which fail to meet the deadline will not get advertising services in newspapers, radio and television with effect from October 1," read the statement. It added that the ban would be maintained against those that would not pay up their arrears in full.

The official said the decision was adopted by a Moat executive committee meeting on Wednesday in Dar es Salaam following mounting concern over the conduct of the agencies. Muhanika said while the deterrent action might inconvenience the big media advertisers, Moat had been forced to act "to save its members' businesses which are on the verge of being ruined by non-paying advertising agencies." Reports indicate out of the Sh3 billion in outstanding payments, one media company is owed Sh1.1 billion, while another is claiming more than Sh700 million.

The Citizen Dar es Salaam

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