Dear Editor,
ON Thursday, the People’s Progressive Party (PPP) issued a statement in which it asserted that Videomega Productions Inc. had received in excess of $10,000,000.00 from the Government of Guyana, which sum included three contracts from the Ministry of Public Telecommunications.

The statement itemised the sums which were alleged to have been paid to Videomega Productions Inc. Videomega Productions Inc. was incorporated in 1994 as an advertising agency and video production company.

In its capacity as an advertising agency, the company would place advertisements in the print, electronic and other media on behalf of its clients. Most advertising agencies extend a 30-day credit to the client, which facilitates large media placements without the necessity of paying in advance.

The financial process involves the advertising agency placing the advertisement in the media on behalf of the client, then invoicing the client for the advertisement. The monies received from the client are paid to the media entity which, thereafter, pays a commission at the rate of 10 or 15% to the advertising agency. This payment of a commission by the media entity to the advertising agency at the rate of 10 to 15% is standard international practice.

The payments received by Videomega are paid over directly to the media houses, and therefore, it is disingenuous for the PPP to say that $10.3M is revenue earned by Videomega Productions when they know that the payment goes directly to the media houses. The company will provide the invoices issued for the sums referred to in the PPP statement as soon as it retrieves it from its auditors.

The management of the business of the company since May 2015, has been conducted by veteran media expert, Russel Lancaster. Videomega Productions Inc. wishes to repeat its earlier statement that Minister Catherine Hughes does not participate in the running of the company.
Regards,
Jennifer Poonow
Admin Manager/Media Placement Officer
Videomega Productions Limited