The protracted indebtedness case to the tune of N481 million between Hayat Kimya (client) and Mainsail Media (agency), has been unraveled as the Economic and Financial Crime Commission (EFCC), has confirmed that it is investigating Mainsail Media Limited for alleged fraudulent practices, The Industry Newspaper can authoritatively report.
A reliable source in the Lagos anti-graft agency today Wednesday September 14th, 2022 told our reporter that Hayat Kimya had submitted a petition against Mainsail Media on 25th April, 2022 in respect of the media monitoring and measurement infraction totaling the sum one hundred and fourteen thousand Dollars ($114,000) and twenty-six million, five hundred and fifty-two thousand, seven hundred and ninety Naira, seven Kobo (N26,552,790.0).
The petition titled: Petition Against Mainsail Media Limited and their directors for Obtaining one hundred and fourteen thousand Dollars ($114,000) and twenty-six million, five hundred and fifty-two thousand, seven hundred and ninety Naira, seven Kobo (N26,552,790.0) respectively by false pretenses, stealing/conversion and other financial fraud perpetrated against Hayat Kimya Nigeria Limited, addressed to the Zonal Commander, EFCC in Lagos, sought to ensure the above named companies refund the stated sum to Hayat Kimya Nigeria Limited.
However, over a week ago, the apex advertising regulatory body, Advertising Regulatory Council of Nigeria, (ARCON) had written to Hayat demanding that it resolved the unpaid fees imbroglio with Mainsail Media and other related agencies within 7 Days.
It would be recalled that The Industry Newspaper Monday, September 12th, 2022, reported that ARCON had summoned Hayat Kimya for a make or mar meeting in its head office in Lagos tomorrow, Thursday, September 15th, 2022.
Speaking to our reporter on the condition of anonymity, an EFCC operative said that “No government agency even the Police has the right whatsoever, to intervene in the matter since the case is already being investigated by the commission.”
“As at today, Hayat hasn’t written to withdraw the case and even at that, it has become a criminal case and the petitioner cannot event withdraw it anymore. The status of the petition is ‘receiving attention’,” he said.
He said, “after due investigations parties found culpable would be charged to court, but until then, EFCC is in charge of the matter and no agency of government can interfere forthwith.”
Following ARCON ultimatum issued against Hayat, Abdulai, Taiwo & Co representing the client has responded to ARCON refuting Hayat’s wrongdoing.
According to the Hayat’s solicitors in a letter to ARCON, “Our client informed us that it duty notified you at the meeting between Hayat and APCON (now ARCON) on April 24, 2022 that is wrote a petition to EFCC to investigate an allegation of a huge fraud perpetrated against it by Mainsail Media involving hundreds of millions of Naira, when it was alerted by a whistle-blower as rightly stated in your 7 days Ultimatum letter under reference.””
“Consequent upon these revelations by a whistle-blower, Hayat Kimya was advised to withhold further payments to Mainsail Media until the fraud is investigated and culprits identified and brought to justice. Payments made in the past appear to have been fraudulently obtained from our client by false claims and pretenses.
Investigations into the allegations of massive fraud has commenced and sometime in July 2022, the EFCC requested for more documents which are in large bundles of over 1000 pages (hard copies) and also soft copies in Flash Drives and Compact Discs to enable the EFCC sift through the bundles with ease.”
We urge you not to be hasty in putting the good name of your esteemed agency behind complainants that may ultimately tarnish the image of your industry.
“Our client is a good corporate citizen fully aware of its responsibilities and will not shy away from its obligations,” the law firm said.
According to ARCON’s findings, the contract was initially for 12 months and renewable every December.
That sometime in June 2021, Hayat Kimya alleged that a whistle-blower sent information that Mainsail was fraudulent in executing media contract in connivance with a media monitoring service provider.
Hayat Kimya Head Office instituted investigation after the allegation into the matter without the knowledge or involvement of its Nigeria office
ARCON stated further that notwithstanding, the whistleblowing, 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 Eighty-One Million, Three Hundred and Forty-Nine Thousand, Eight Hundred and Fifty-Four Naira, Forty-Five Kobo only).
Hayat Kimya did not inform the Management of Mainsail of the whistle blowing up until the meeting called by the advertising industry regulator – the Advertising Practitioners Council of Nigeria (APCON) now the Advertising Regulatory Council of Nigeria (ARCON)
Hayat Kimya offices have ignored all correspondence from Mainsail and failed to liquidate the outstanding debt and the investigation of the allegation has been ongoing for 12 months as at the time of the meeting.
Meanwhile, ADVAN has read with deep regret, the statement put out by ARCON, a government agency, seeking to meddle in an unwholesome manner, in a contractual dispute bordering on alleged fraud that is currently the subject of investigations by the appropriate law enforcement agency(ies). ADVAN states unequivocally that ARCON’s statement reeks of an underhand attempt to subvert the ongoing process in what has been alleged a criminal issue. This is against the rule of law as espoused by the President Muhammadu Buhari administration.
ADVAN therefore wants to use this medium to reiterate that Hayat Kimya Ltd, a member of ADVAN, is a responsible and law-abiding organization in Nigeria.
While ADVAN supports the need for contractual agreements to be upheld by all parties concerned, we also advise all parties including ARCON to allow the relevant bodies empowered by the Nigerian constitution on issues of dispute resolution and, or breach of contracts, to carry out their full investigation and make available their findings after the completion of investigations.
It is an overreach for ARCON as a regulatory institution, to demand an outcome in an ongoing business and contractual dispute, that has already been reported to relevant authorities when it is neither a law enforcement agency nor a court of law.
It is our hope that ARCON in its position will create structures towards ease of doing business in an already chaotic advertising environment, as well as be the catalyst for peaceful co-existence among stakeholders.
“We would want to reiterate that the entire industry is better served in an atmosphere of collaboration, mutual respect, and trust. We therefore enjoin ARCON and other relevant stakeholder associations to see businesses – who represent the bulk of advertisers in Nigeria, as partners in progress,” said ADVAN.
