Nobel Media practices of Media Factory

Group of Companies

No

Nov 01, 2015

Madison Media PVT LTD, Media Factory PVT LTD and
Magenta Advertising PVT LTD are associated companies.
Media Factory Directors Kapila and Prasanth were introduced to Yoshitha
Rajapaksa by Yasara Abeynayake, later they became the partners of Media
Factory Group.
Due to the political influence of Yoshitha Rajapaksa, they got Mobitel Media
Account, later they approached, SLT, Bank of Ceylon, Port Authority, Peoples
Bank, National Development Lottery, Seylan Bank, CHOGAM, NSB and
NSBIM.
Approaching the above mentioned accounts they used different unethical
code of conduct.
They introduce themselves as the business partners of Yoshitha Rajapaksas
Media factory Pvt Ltd, and threaten the clients saying you will get removed

from your position unless you give the business to Media factory
They openly bribed Mobitel Marketing Director, SLT Marketing Manager Ms.
Nadi Dharmasiri and Sri lankan Insurance Ms. Niroshine Pethiyagoda.
For the presidential campaign alone, they billed 1.7 billion Rupees worth of
media scheduling through Media factory. Most of these funds came from
Government and semi government companies and the rest came from drug
dealers and stock market mafia dealers such as Duminda, Johnston, Ajith,
Nimal, Dilith, Ishara and Dammika.
In a nutshell Media Factory directors directly dealt with the drug peddlers
money. (Kapila Vidanagame and Prasanth Subramaniam)
Out of 1.2 billion billing, they disclosed only 600 million to Inland Revenue
Department. Balance they didnt disclose due to the black money; Had
Inland Revenue did a proper audit, the entire Media Factory Group will get
caught for TAX and VAT fraud. In order to escape they kept a close
connection with then Commissioner General Mrs Wasanthi Manchanayake.
There were few instances the employees of above mentioned government
clients and staffs have complained to bribery commission due to Media
Factorys unethical conduct and bribe. Unfortunately former Chairman of
the Bribery Commission Justice Jagath De Silva Balapatabendis
involvement and undue political pressure from Rajapaksa Family, the
company and the directors were safe.
Due to their unethical practices, Commercial bank & Hatton National bank
suspended Media Factory group of companies bank accounts.
Recently AOR pitch JKH (John Keells Holdings) rejected Madison Media
submissions and blacklisted Media Factory Group of companies from their
work.
On a same principle Global Clients such as Nestle Lanka PVT LTD, Reckitt
Benkiser PVT LTD, Johnsons & Johnsons (J&J) and Lankem PVT LTD sacked
Media Factory Group of companies.
Media Factory Group of Companies and their unethical Business Practice
Unethical commission from Wijeya News Paper Limited to get more
business. Unprecedent commission from SIRASA to capture more
business, Bribe for Clients giving business (Mr. Preethi for Wijeya News
Paper involved)

Tax Fraud, VAT Fraud and ESC Fraud

They maintained 3 accounts under one Master ID at Standard Chartered
Bank, PABC, NTB and NDB Bank For VAT fraud purposes
Profit Adjustment 5 million prior to Audit Report TAX Fraud year 2010
Profit Adjustment 7.2 million prior to Audit Report TAX Fraud year 2011
Profit Adjustment 9.6 million prior to Audit Report TAX Fraud year 2012
Profit Adjustment 17.3 million on Audit Report TAX Fraud year 2013
Profit Adjustment 185.9 million on Audit Report TAX Fraud year 2014 to
2015 due to government account political account
Please note during the year 2014 to 2015 Media Factory and Magenta
Advertising PVT LTD have issued big sum of cash Cheques to the outsiders
most of this outsiders are government servants and politicians in a nutshell
they have bribed the government servants and politicians including
Yoshitha Rajapaksa.
VAT or TAX Fraud on Nestle billing
Fraudulent billing figure to Audi Report to TAX authority (Inland Revenue)
VAT and ESC Fraud.
Media Factory Audit report 2008 to 2009 Nestle Billing
Year
2007-2008
2008-2009
2009-2010

Actual Billing
Fraud amount on Audit Report
282,000,000.00
133,000,000.00
408,000,000.00
274,000,000.00
493,000,000.00
335,000,000.00

This violates TAX law; Nestle being a Multinational Client as well a Public
quoted company in Sri Lanka this kind of act will undoubtedly tarnish the
international reputation of the Clients.
Creative Agency Commission Fraud - Nestle
Year 2007 to 2008 CAG commission due to the creative agency O&M and
Grand McCann Erickson has not been given it to the respective agency.
2007 to 2008 Phoenix O&M Creative agency commission for Nespray
2007 to 2008 Grant McCann Erickson Creative Agency commission for
Nescafe and Maggi
Underhand Commission from Stations
As you aware in terms of media volume Media Factory and Madison

They club their clients billing, on over all billing they are collecting unethical
commission from the media stations. This fraudulent act violates not merely
the Media ethics. its against IAA and 4 As Standards. Their preference on
station based on Kickback neither the ratings nor the listener-ship is
considered.
Extra commission from station collected in different forms Cash Cheque,
cheque under company name sometimes moveable assets like
PRADO..for this purpose they are maintaining several bank account under
one master account.
Cheque Received from Vijaya Publications
CH. NO 586402, CH. NO 586403, CH. NO 586404 - Rs. 2,040.433.22
Cheque Received from Ran and Shree Radio Station - Rs.1,240.365.89
Payment Received from MTV Station - Rs. 6,243,913.78 deposited into
SCB 2nd account under main master account Year 2008 to 2009
Payment Received from MTV Station - Rs. 7,911,011.26 deposited into
NDB account under main master account Year 2010 to 2011
Please refer the email correspondence between!
Kapila and Tarin (Shree FM)
Kapila and Preethi (Vijaya Publication)
MTV cash discount Media Factory * ethically should have given to Clients
Normally Cash discount should be given to Clients! This instance it was
given to Media Agency, please do an agency client audit if possible
Please check MTV Invoice Value to Media Factory and Payment value to MTV
( cheque NDB bank Statement Year 2008 to 2010)
2008 to 2010 - Station Invoice Value is different to Media factory Payment
Voucher Value, Cheque Value and Bank Statement Value
Media Factory has utilized Nestle Bonus Airtime for new clients and pitches!
Nestle Bonus Airtime utilized for Airtel Launce
Nestle Bonus Airtime utilized for Britannia Launch
Splendor Bonus time utilized for Nestle gain the account from Grants and

O&M
Airtel Bonus utilized for Commercial Bank
HNB and Lankabell Cash discount is shared between Gayathri, Prasanth and
Kapila
TAX Fraud -Airtel
The collected sum ESC and VAT from Airtel by Madison have not been paid
to Inland Revenue. According to the TRC act they can even suspend the
Airtel license Defaulting Tax - Please see the attachments
Reference Number
CLM 06 -28/12/2009
CLM 07 -28/12/2009

Amount
598,374.83
1,644,670.32

Year
2009 April to Sep
2009 Jan to March

Cheating their own Directors Mr. Sam Balsara

The Actual rent of the company premises has been doubled by false
documentation, as well as the entire interior Decorating, Landscaping, IT
Server, Computers, Electrical Wiring, Air condition, PABX system, Etc.
Which clearly proves their dishonesty beyond doubt.
Kickback for Clients
They have billed Lankem - Paras they have billed 30% Agency Commission,
15% of the value been paid to Rajesh from Lankem.
Kickback for Station Executive for inside information
They pay kickback for station staff for providing inside information
regarding competitive launch, and campaign etc.
Competitive clients under one roof (conflict of interest)
1. Allianz and Asian alliance under one roof
Asian Alliance Sacked Media factory
2. Lakspary and Nespray (milk powder)
LMF sacked Media Factory
3. Reckitt Benkiser and J&J
Reckitt Benkiser sacked the agency later J&J also sacked Media Factory
4. Lankabell and Airtel
Lankabell sacked Media Factory
5. Commercial Bank Sacked Madison due to unethical practice
6. Lankem Sacked Media Factory for unethical business

7. Nescafe and Radiant Marketing Coffee under one roof

8. Mobitel and Airtel divulging marketing information
Unethical Cyber or MUD Campaign against their competitive Clients
Melamine campaign against Munchee Biscuits CBL, Kapila used his staff to
send MUD campaign against CBL; his staffs have send mails from cyber
caf to 5000 database saying Munchee biscuits contain Melamine
WHY? During that period they were handling Britannia Biscuits!
Similar campaign against Ceylinco VIP inside information from McCann
promising a prospective job for an individual at splendor media
WHY? During that period they were handling Sri Lanka Insurance
Corporation
Sometimes they do pay publication editors to write articles against their
own clients and then come up with media strategy for extra billing.
In view of the afore mentioned it is regret to note that current Prime
Minister of Srilanka Mr.Ranil Wickramasinghe also entrusted forth coming
local government election campaign to Media factory,the most notorious
and rouge advertising agency in Srilanka.
Posted by Thavam