More evidence on New Age advertising shows need for Auditor General investigation 

More evidence has emerged in support of the DA's call for an Auditor-General investigation of government's advertising expenditure on the New Age newspaper. 

Yesterday the City Press reported that government had spent R108 million between December 2011 and November 2012 on New Age advertising. These numbers are significantly higher than the DA initially estimated, since they include figures from all government-owned entities and local and provincial governments. 

The numbers are based on calculations from the most recent Nielsen Adex report. The report contradicts government's claims to have only spent R15 million on New Age advertising in the period between December 2010 and November 2012. 

I will therefore today contact the Auditor General's office to seek a meeting on this matter. The extent of government's subsidisation of the New Age newspaper has taken on much larger proportions than we ever expected. Together with the spending on advertising during 2011, and the millions in sponsorships for New Age business breakfasts, it is conceivable that as much as R200 million has been spent on the New Age by government since its inception. 

We need an investigation to determine why government chose to spend so much money on a newspaper that is read by an uncertified number of people. 

The Auditor General should investigate to determine:

·         Whether the appropriate processes were followed in placing advertising in the New Age.

·         Whether advertising in publications without Audit Bureau of Circulation certificates constitutes a breach of the Public Financial Management Act.

·         What the productive outcome of this R200 million of expenditure on the New Age has been. Does government have any idea of the effectiveness of this advertising; and if not, why does it continue to support The New Age so enthusiastically?

Statement issued by Mmusi Maimane, DA National Spokesperson, February 11 2013

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