KATHMANDU, Aug 24: Nepal Republic Media organized an interactive program on government advertisement on Monday. During the event, communication entrepreneurs and advertising agencies criticized the government agencies for trying to curb government advertisement through the Public Procurement Act. They opined that the system of keeping government advertisements only on the website should be corrected immediately as the country has not gone to complete digitization and internet access is also low. They expressed that curbing government advertisements is dangerous for democracy, stating that the right of citizens to get information is being suppressed by keeping government advertisements only on the website. They also said that the policy of restricting advertisements should be amended immediately as advertising would increase transparency and competition. They said that positive efforts to manage government advertisements have also started.
In the program organized by Nepal Republic Media, former Chief Secretary of the Government of Nepal, Shanker Das Bairagi, Chairperson of Advertisement Board Laxman Humagain, Director of Republic Media Shobha Gyawali, Chief Executive Officer Sambridhi Gyawali, President of Advertising Association of Nepal (AAN) Dharmendra Kaji Shrestha and other advertising agency owners expressed their views. The program was facilitated by Guna Raj Luitel, Editor-in-Chief of Nagarik Daily.
New advertising markets should be explored
Shanker Das Bairagi, Adviser, National Security Council
Nepal Republic Media has set an example by demonstrating that media can be operated in a new way through its transition to a public company. The ongoing discourse regarding the government advertising market is indeed constructive. Such debates and discussions play a vital role in reaching informed conclusions, provided they are approached with a positive mindset. Media is one of the most advanced sectors in Nepal. Rights of all professionals and businesses are safeguarded in a democracy.
The media industry is grappling with challenges, and this extends to advertising agencies as well. This has been acknowledged during the discussions. The state should protect all professions and businesses. Presently, citizens are often better informed than the government itself, and the global shift towards the digital age is undeniable. Print media, in particular, has encountered difficulties worldwide. Media should also explore new markets. Competitors must be creative. Media does not operate in a traditional way anymore. Digital technology has impacted traditional newspapers. In this context, magazines should be protected. Weaknesses in any law should be rectified. Amendments to the Public Procurement Act are said to have brought down the advertising market. If this is in conflict with the basic spirit of the Public Procurement Act, a solution should be found. The media houses might be upset but they should search for new advertising markets. Research should be done. There are challenges in all areas. The problem must be addressed.
Advertisement regulation controls leaks in government advertisements
Laxman Humagai, Chairperson, Advertisement Board
The first amendment to the Advertisements Rules and Regulations, 2080 BS has taken some new steps. At present, the advertisement market has a problem because the three bodies- advertisers, advertising agencies and media are not transparent. Now the advertisers are both private and government. Presently, both private and government entities engage in advertising, with government agencies contributing 33 percent of the total advertising market. The government's advertising expenditure amounts to nearly Rs 5 billion, making it the country's largest advertiser.
There are three types of government advertisements and notices: First, there are advertisements and notices that are mandatory for the government. Second are public welfare and public interest advertisements and third are other types of advertisements. Advertising is the backbone of media. Media cannot function without advertising. Now, as there is no trust between the parties of the advertising market, the practice of not trusting each other has developed. At present, representatives of advertising agencies are distrustful of the government and regulatory bodies. There is also distrust towards the advertisers and themselves. Now here is our challenge. We have revised the rules to reduce the anomalies seen now. Currently, the media advertising rates are not public. Even the rates have not been implemented. The media also played a role in reducing the rate. Advertising agencies played on the weakness of the media. Advertisers also played on the same weakness. That's why it got distorted. In the current regulation, we have brought a provision that the media houses must publish their rates on the advertisement board. We have arranged that the agency should keep a copy of the media bill and pay its service fee based on the initial bill.
This arrangement will help in controlling leakages in government advertisements. Advertisements now aired are checked by the board. This will prevent misleading advertising. Now we have arranged to make payment transparent. Payment is not a problem in government advertisements; it is a problem in private sector advertisements. The e-procurement system operation manual has also been made as a manual based on the section of the Public Procurement Act. The Act will not be overruled by any directive. The directive does not deal with the provisions of the Procurement Act. If an advertising agency feels that the directive violates the Act, you may seek legal remedies. Currently, a comprehensive government one-door system for advertising does not exist. To clarify, we're working towards developing a systematic approach to manage the advertising sector. The tools and information are accessible on our website, empowering you to make informed choices. We've also conveyed that non-compliance with payment will result in advertisement removal. The notion that government regulations aim to stifle the media industry is baseless and incompatible with democratic values. Corruption can potentially arise from information published in newspapers. Let's collectively deliberate on whether exclusive website publication diminishes healthy competition.
Agencies and media are complementary to each other
Government proposes scrapping public welfare advertisements
Shova Gyawali, Director, Nepal Republic Media
We have been running Nepal Republic Media to contribute to society. We have been working according to the religion of the media. It is our responsibility to inform the public. We have been working hand in hand with the general readers. We believe in collective media ownership. The notion that media should be owned by the public, rather than a single entity, fosters a sense of shared responsibility. It also strengthens the integrity of newsrooms.
We want everyone's voice to be heard through the media. Now more than 300,000 members have joined the Nepal Republic media family. Being a public company, we have paid attention to the fact that the media should be organized. Advertising is necessary for running a media outlet. If we have contributed to the society, it is expected that the society should also give something to the media. The country's economy is in shambles after the Covid-19 pandemic. It is also difficult to operate the media. Even though other businesses were closed due to the Covid-19 pandemic, we always informed the readers by publishing our newspaper and magazine. We have been publishing despite any difficulties. Now not only the media but also the agency has a problem. The agency has helped us with government advertising. The advertisement board has also started working on how to manage the advertisement. This is a positive work. We expect that when magazines are classified systematically, advertisement distribution will also be systematic. It has also been reported that the advertising market has shrunk due to the government's policy decisions. This should be corrected by the government. Agencies and media are complementary to each other. You have to go hand in hand.
Government's approach towards the media was negative
Sambridhi Gyawali, Chief Executive Officer, Nepal Republic Media
To operate a media without foresight, adequate business is essential. Otherwise, there will be a situation of how long and how much the investor will continue to invest.
Business is determined by two things, one is the readership and the other is the advertiser. The readership of any media is very good and large but advertisers believe that it is an 'ideal situation'. Upholding this 'ideal scenario' is key to the sustainability of industries, including media. However, the post-Covid landscape has reshaped this dynamic.
Print media in Nepal is more authoritative and reliable than digital or social media. Digital media has not been able to earn as much as the income from the sale and distribution of print media. Media survives on advertising. Media, agencies, advertisers, and the government should work together in a proper environment and move forward together.
Until last year, advertising for alcoholic beverages was allowed but now that too has been regulated. The system of being allowed to produce alcohol, to sell and distribute it, consume it but not to advertise it is absurd. Such instances reflect a lack of mutual trust among each other. Everyone should cooperate and move forward.
Looking at the current situation, it seems that the government is trying to shut down the media in a systematic way. In a democratic country, it is not justified for the government to distrust the media in this way.
While formulating any act, rule, regulation, the government should have extensive discussion and interaction with all relevant agencies and stakeholders, which government doesn't seem to be doing.
At present, the Nepali people are not even able to provide public welfare information through the media. Free media is the first condition of democracy, but the government's behavior towards the media is negative.
Republic Media has accepted advertising regulation. Although some things in the regulation seem to need further discussion, its intention is not bad. The company welcomed the regulation. If there is no advertisement, we will survive in our own way as much as possible, but if any rule comes with the intention of shrinking the media, it is an attack on democracy.
The contribution of the media is well known. There has to be an environment to invest in the media. Not only the media, but the country should have an environment to invest in businesses and industries that are opened according to the law. The government should also take responsibility for its security.
In some cases, what is the intention of the country towards business or industry is more important than how the business or industry can be conducted.
The work done by the private sector media has been devalued
Dharmendra Kaji Shrestha, President, Advertising Association of Nepal
Nepal Republic Media has started an important program. It is a pleasure to start a discussion on the issue of government advertising. The work of Republic Media to bring shares to the public is positive so that people can invest in Nepal. Many employees had to be laid off due to Covid-19. Employees were laid off due to the economic downturn. Even today, after the Covid-19, the media market has not been able to rise. Even big corporate houses have stopped advertising. Government advertisements used to be published in many places but the government has now published them only in Gorkhapatra, the official media. Government agencies juggling advertising with government media is an attempt to stifle the private sector media.
By doing this, the private sector media is being destroyed. The government media only cheers the government. Let us imagine what the situation would be if there was no media to write about the people, to raise the problems of mountains, hills and plains. In developed countries there is no practice of giving government advertisements in government media. One can watch media like the BBC, Doordarshan etc. Government advertisements should be published in private media and not the state-owned media. It is the government's responsibility to encourage the private sector. Media rates should not be determined by the government. Advertising should not be controlled by advertising boards where open economy policies are adopted. Government advertising should be transparent. Monopolies have been reined in through advertising regulations. Suspicions have arisen that it is a strategy to provide advertisements to the media that hails the government. Advertising should be done based on media circulation and impact. Investment in big media is also higher. Ad distribution should be fair. Now the advertising regulations brought by the government should be revised. It seeks to curb advertisers and media houses. If there is no amendment, we may have to fight from the streets to the House. Even when the government agencies give advertisements, it should be given competitively. Public procurement guidelines have been issued to publish advertisements through electronic means. This makes it opaque. On the one hand advertising has been stopped and on the other hand it has reduced competition.
By not having to publish advertisements, expenses are saved but competition is reduced. There are always problems with government servers. Internet access in the country is not easy. Only the national daily newspapers can give information to the general public. There is also a possibility that the server may be down in collusion for non-publication of the notice. The intentions of the state administrators do not look good. It seems that there may be an agreement with the big contractors. This is wrong. It is wrong to say that public procurement notices should only be placed on the website and should not be printed in the newspaper. It increases corruption. The role of the private sector media has been devalued.
The state is moving towards weakening the media
Humalal Bhandari, Managing Director, Intensive Media & Suppliers
According to the e-procurement system operating guidelines, there is now no need to advertise in newspapers. On the other hand, there is another matter of the nature that the state collects all advertisements through a one-door system and distributes them from one place. The government is trying to stop advertising. Let's understand this. Now the state is working to weaken the media as much as possible. Who cares what the advertising board says. After the Public Procurement Act, no other agency of the state cares about the advertisement board. If the authorities make arrests in the coming days, it will be according to the Public Procurement Act and regulations, not according to the Advertising Act. Now the state is planning to attack media professionals. After the attack on the media, other professions connected with the media are also being directly affected. A situation is being created that even the first amendment of the regulations brought by them is not being implemented. After a government body sent a letter saying that it should not advertise in the newspaper, the advertisement will not appear anymore. At present, there has not been enough discussion and debate about the attack on the media itself. Now, the government is cracking down on the media one after the other because the media has warned loudly about the irregularities in the state. The government is working with a strategy to weaken the media by making it fail financially at the initial stage. Therefore, the issue of weakening the media cannot be supported in any way. The wrongdoings of the government agencies have become public through the media. By making the media itself weak and powerless, they are weaving a plot to shut the media down. Everyone needs to oppose such wrongdoings.
Government is playing a game to end advertising agencies and media
Basant Yogi, Managing Director, Sworgadwari Media
We have said before that we don't need billboards. Even now, the advertisement board is being used as a recruitment center for political party workers. Now it seems that the purpose of establishing the advertisement board is under the strategy of how to curtail the media. Because the government has given the right to open and operate the media as per the constitution, the registration cannot be canceled. But the government is currently working with the aim of reducing government advertisements. Even now, the main market for advertisement is the government advertisement market. Apart from this, other advertising markets are very less. Now media houses and agencies have to work hard to get government advertisements. Now it seems that the state is working to wipe out the media houses after finishing the advertisement agencies. It seems that the government has a mala fide intention to shut the newspapers. Now, the agencies and the media houses are in crisis and the profession and employment of the media workers and employees associated with the media houses is also in crisis. There is a need to amend the regulations taking this into consideration. The Advertisement Board should regulate and monitor but should not work to close down or terminate media houses and agencies themselves.
According to the e-procurement system operating guidelines, if the advertisement of any government agency is placed only on the website of the Public Procurement Monitoring Office, it will reduce competition. On the other hand, the servers of Nepal's government websites are highly unreliable and tampered at any time, so there is a lot of distortion and inconsistency in it. It does not seem appropriate to implement the system.
Is the advertisement board established to consolidate government control?
Rajanbabu Shrestha, Managing Director, Join Media House
Regulation is reasonable when a market exists. However, the current discourse revolves around the Rs 5 billion ad market, primarily fueled by government advertising. The Public Procurement Act stipulates that tenders must be invited, with the requirement that such notifications be published in a national-level newspaper.The part which constitutes the government budget has also been observed in the government advertisement market.
The question arises: has the system been established or streamlined for one sector while neglecting the other? Concerning the media sector, the government's actions seem akin to suppressing media freedom. Notably, a significant portion of government agencies' budget allocation pertains to the Public Procurement Act. Yet, the Advertisement Rules and Regulation 2080 BS (First Amendment), dated July 17, 2023, have curbed this practice. This particular provision has stirred legal debates and subsequently disrupted a substantial stream of income for advertising agencies. Even if the government claims a share of Rs 5 billion, Gorkhapatra and other newspapers are likely to account for approximately Rs 2 to Rs 3 billion.
The regulation will shrink the existing market as well
Pradeep Koirala, Managing Director, Media Solutions Pvt Ltd
There is a pressing need to widen the scope of advertising. A targeted discussion on how to expand the scope of advertising is also needed.
While referred to as an advertising agency, it is not merely an agency but an industry. This realization needs to be pondered upon. Currently, the laws, rules and regulations made by the government are contradictory. Even though the relevant agencies were called and discussed, there are some weaknesses. Certain procurement practices clash with the established Act, and at times, the Act itself contradicts the rules. Such disparities should be given significant consideration. First of all, the market should be expanded. It seems that the regulation will shrink the existing market as well. Given the present context of relatively weakened state authority, questions may arise whether these laws, rules, and regulations are introduced with the intent of undermining the agencies’ potency.
