The Advertising Practitioners Council of Nigeria (APCON) now the Advertising Regulatory Council of
Nigeria (ARCON) has given Hayat Kimya Nigeria Limited is a subsidiary of Hayat Holding a seven-day ultimatum to resolve its indebtedness to Mainsail Media Limited to the tune of N481,349,854.45.
Pendulum Nigeria reports that the ultimatum is contained in a press statement signed by Dr. Olalekan Fadolapo, ARCON, Director-General on Monday.
Hayat Kimya head office reportedly engaged Mainsail Media as an agency to coordinate media buying and placement, working with Hayat Kimya Nigeria Limited. The contract was initially for 12 months and renewable every December.
Sometime in June 2021, Hayat Kimya alleged that a whistle-blower sent information that Mainsail was fraudulent in executing a media contract in connivance with a media monitoring service provider.
Hayat Kimya Head Office instituted an investigation after the allegation into the matter without the knowledge or involvement of its Nigeria office.
Notwithstanding the whistle-blowing, Hayat Kimya continued to conduct business with Mainsail until sometime in September 2021.
Hayat Kimya disengaged Mainsail in November 2021, the outstanding invoice as at the time was N481,349,854.45 (Four Hundred and Eigh-One Million, Three Hundred and For-Nine Thousand, Eight Hundred and For-Five Naira, For- Five Kobo only).
Hayat Kimya did not inform the Management of Mainsail of the whistleblowing up until the meeting called by the advertising industry regulator APCON now the ARCON.
Hayat Kimya offices have ignored all correspondence from Mainsail and failed to liquidate the outstanding debt. The investigation of the allegation has been ongoing for 12 months as at the time of the meeting.
After several efforts by Mainsail and ARCON to resolve the unethical advertising and marketing communications negative, the advertising body on Monday issued an official statement to Hayat Kimya stating that Hayat Kimya should resolve the issue of indebtedness with Mainsail within 7 days of receipt of this leer.
Where the debt is not resolved within 7 days, the ARCON will be constrained to invoke all or any of the following actions:
(a) Revoke all approvals to advertise issued to Hayat Kimya advertising materials until the issue is resolved.
(b) Decline further approval of all advertisement materials of Hayat Kimya until the issue is resolved.
(c) Enter Hayat Kimya in the black book of the Nigerian Advertising Register.
(d) Petition other relevant government regulatory agencies to investigate the business and economic activities of Hayat Kimya in Nigeria for the purpose of determining whether such activities are being carried out in an unethical manner and in disregard to government regulation.
(e) Cause the prosecution of Hayat Kimya or its officers where violation of any provision of the law is observed.