Following intense scrutiny over its billboards licensing requirements, the Petaling Jaya municipal council (MPPJ) has tentatively retracted an earlier condition for all outdoor advertising companies to make a RM10,000 donation to its sports club.

Several senior advertising executives confirmed the development with malaysiakini today, but the municipal council was reluctant to reveal its official decision.

An advertising executive who requested anonymity said MPPJ has postponed its meeting with the companies concerned to later this month or next month, pending its decision on whether or not to revert to the old licensing system.

"We should be able to send applications to MPPJ directly and no longer to the sports club. This is supposed to have started last month," said the executive in a telephone interview.

"Although it has not been officially enforced, we have received feedback that they will change it back (to what it was before)."

He said advertising companies may still contribute to the sports club if they wish.

"Naturally if you contribute, your chances (of getting the licensing rights) are higher. The sports club will give the company a recommendation letter," he said.

While it was unlikely that the companies would make the 'donation' on their own, he said some may choose to do so if their clients insist on access to billboards at particular locations.

However the executive said all deals signed between the municipal council and ad companies prior to this change would remain in force.

Hazy guidelines

Another ad executive said the application procedures for licensing rights remain largely unresolved since the council has not called a meeting to clarify matters.

"The last time we checked, (MPPJ president Abdul Karim Munisar) had stuck to his statements to the press on this matter - that there was never a transfer of rights to the sports club and that the RM10,000 donation was not mandatory," she said.

The executive said the council had said it would announce new guidelines on the correct application procedures, but that no date has been fixed.

"MPPJ said it did nothing wrong but if so, it should call for an open meeting involving all companies to confirm the new guidelines," she said.

"At the moment, some say that we can apply directly to the council or to the sports club but when we tried sending in our application to the sports club, they referred us to the planning department."

The executive could not say why the planning department of the council is now involved in the matter.

"We think some departments do not want to have anything to do with this issue until (Abdul Karim) makes an official announcement."

No decision

Last month, a controversy erupted over the arrangements whereby the municipal council was alleged to have transferred its licensing rights for billboards to its sports club.

The issue came to light after a columnist in The Sun raised questions over the transfer and brought to light the imposition of a new mandatory RM10,000 fee per billboard payable to the council's sports club.

In response, the Outdoor Advertising Association of Malaysia called for an end to the 'primitive' way of conducting business through donations and sponsorships of various bodies.

The body also protested the 'unhealthy and unfair' deal signed between the council and a partly Australian-owned advertising company, Kurnia Outdoor, which donated RM3 million in exchange for rights to 30 billboards.

When contacted, an official at MPPJ's public relations department said the council has not made a final decision on the matter as Abdul Karim will be abroad until next Monday.

Abdul Karim had earlier set Aug 30 for a press conference to clarify the matter. However, the meeting was cancelled in view of MPPJ's 50th anniversary celebrations.

The official said no replacement date has been set yet for the press conference.