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Business Reporter
THE Bulawayo City Council could be losing at least $5,000 per month due to lack of transparency in the operations of outdoor advertising companies in the city. The contracts for outdoor advertising including stadia expired in February this year and the operators have engaged the local authority seeking renewal.

The council’s latest monthly report indicates that some councillors suggested that advertising issues should not be tendered out citing underhand dealings by some contracted advertising firms.

“It was difficult to get information regarding advertising especially on how much companies paid for their adverts to these advertising companies.

“Advertising companies also did not give out information on how much they raised. It was estimated that council could be losing $5,000 a month,” read the report.

The councillors’ view was that council should provide this service through the Town Clerk’s department of economic development since some contractors were not paying their dues to council.

Alliance Media, the company that was contracted to erect eight road arch billboards on the highways leading to the city in 2011, had not paid anything to council, read the report.

“The company by then had failed to pay $4,000. There was need to be consistent,” it said.

The local authority, however, noted that most contracted companies had engaged council seeking to have payment plans.

“Alliance Media had made a lot of investment in erecting bill boards but there were very few companies which came up for advertising,” said the council.

The council resolved that Alliance Media’s outdoor advertising contract be extended for a further period of three years from February, 11, 2014 to February, 11, 2017 at a monthly rental of $300 per month for each of the eight road arch sites and $100 for each of the 11 ordinary billboards and that rentals paid by the company be reviewed at each anniversary of the contract.

Outdoor advertising contracts for Askeland Media, Continental Outdoor Media and Advertising Industries have also been renewed for a further period of three years from February 2014 to February 2017.

The local authority also resolved that new contracts for Staymar and Finemark be drawn up and that stadia advertising and advertising on private properties be handled by the department of the Housing and Community Services in terms of by-laws.