Advertising agency ordered to pay Transport Malta €490,000

Advertising agency MPS Ltd has been ordered to pay Transport Malta almost half a million euros in terms of a contract for the organisation and management of display advertisements on route buses. The authority told the court that, in 1995, it had issued a call for tenders for the organisation and management of display of advertisements on route buses. MPS had tendered for this contract, which it was awarded in September 1995. The contract provided for the payments due by MPS and the authority said that when it filed its court case, in 1999, MPS owed it Lm211,650 (€493,046.82). MPS denied TM's claims and said it had submitted for the tender on the basis that advertisements could be carried on both sides of the buses. However, only 100 of the 508 buses that existed at the time could carry such double advertisements. Many bus owners did not co-operate with MPS and eventually only 112 buses actually carried advertisements. But the court found that MPS had entered into a contract with TM and that the terms of the contract had to be observed.