By Our Reporter
CTA Space, the advertising/marketing agency at the centre of the MTN market agency dispute, has questioned the said review process of it’s (CTA Space) suitability purportedly carried out by M&C Saatchi Abel.
In response to a press statement issued by MTN Uganda last week in which the telecommunications giant retaliated its commitment to resolving the standoff fairly, CTA Space insists there’s unfairness in the whole process.
Twaha Kakaire, the Managing Director (MD) CTA Space, in the statement appreciates MTN’s commitment to ensuring the matter is resolved fairly but questioned how a review of his company was conducted.
“Following MTN’spress statement, we note that a review of CTA’s suitability was conducted.
However, we still have questions as to how and when this review was conducted,and by
whom it was conducted, as there have been some blurred lines around that,” Mr. Kakaire wrote in a statement.
He added: “In April 2024, M&C Saatchi Abel communicated that we, together with themselves, had been appointed by MTN, encouraging us to take time and celebrate with our teams (which we surely did). It was only at the end of June when we expected to be contracting with MTN when M&C Saatchi communicated that CTA Space had been rejected by MTN procurement, albeit without following any due process, raising the transparency question.
We also note that we still have an MOU in pace with M&C Saatchi Abel as the affiliate for the Ugandan Market so it raises another question around corporate governance and integrity –how then
was another agency presented and accepted without addressing an already existing
agreement?”
Mr. Kakaire further adds that CTA Space engaged M&C Saatchi Abel, who up to this point are unwilling to resolve the matter amicably.
“It is for this reason that we involved MTN directly, as the principal in this matter, who we believe upholds the highest standards of corporate governance and abides by a code of ethics, and wil uphold their business partners to the same high standards.
We have all seen what MTN has done through their CSR in supporting disadvantaged communities and individuals over the years they have been in operation.
While not obligated, we trust that MTN’s involvement wil ensure their appointed marketing agency does not breach the laws of the land, and unfairly disadvantage a local agency in one of its key markets,” the statement further reads.
It’s on such grounds that CTA Space insist it expects MTN to ‘force a hand of resolution’ and provide the stage to discuss a settlement with CTA Space, having accepted a different agency to do the same job.
BACKGROUND
A mother of wars broke out in the business world when global Advertising Agency M&C Saatchi Group sabotaged a local firm, CTA Space Ltd for a lucrative advertising contract with MTN Uganda worth UGX 300 million a month.
In 2023, MTN Uganda launched a thematic campaign dubbed “Together, we’re unstoppable,” anchored on celebrating the resilience and creativity of Ugandans and providing a platform for them to showcase their skills.
For Twaha Kakaire, a budding entrepreneur building his profile within the marketing communications world through his advertising agency, CTA Space Limited, this campaign spoke directly to his mission of supporting brands and businesses in maintaining a firm rooted in consumers’ minds. His passion led him to partner with M&C Saatchi Abel during the pitching process for the MTN account across the continent.
On the 8th September 2023, CTA Space Ltd in Uganda and M&C Saatchi Group trading as M&C Saatchi Abel (“M&C Saatchi Abel”), based in South Africa, entered into a Memorandum of Understanding (“MOU”) outlining terms of engagement for the pitching process as part of the Request for Proposal (RFP) for the appointment of a marketing and advertising service provider by MTN Group in all markets across Africa, where the big telco business operates.
This followed CTA Space being one of the affiliate agencies that the global M&C Saatchi Abel had collaborated with to pitch to MTN, as they would become the Opco agencies to service the account (MTN) fully within their respective markets and sign contracts directly with the local MTN Opcos in those markets. Subsequently, M&C Saatchi Abel were successful in the pitch to MTN, utilizing credentials and rate cards submitted by CTA Space Ltd.
By subsequent notice, vide email dated 22nd April 2024, M&C Saatchi Abel communicated to CTA Space and the other affiliates that it had been appointed as the new marketing services partner across all MTN Group operating companies effective 1st January 2025.
In this case, CTA Space, which is 100% owned by Ugandans, would handle the Uganda market and would be directly contracted by MTN Uganda once presented as the local affiliate to M&C Saatchi Abel, with whom they worked to win the account.
Sadly, despite M&C Saatchi Abel being pre-qualified on the basis of the credentials and rate card submitted by CTA Space Ltd in support of its pitch to MTN, M&C Saatchi has since reneged on this position and decided to irregularly appoint another agent (CreateAbuzz Communications) who was not privy to the pre-qualification process or appointment.
In an email from Nival Maharaj, a new business project director at M&C Saatchi Abel, dated 28th June 2024, M&C Saatchi asserted that CTA Space was rejected by MTN Uganda’s Procurement function, albeit without following or involving CTA Space in any due diligence/process.
The email read: “While we have been presenting your agency in the best possible light to ease MTN’s concerns and feedback, regrettably, CTA Space has been rejected by MTN Procurement and the local Ugandan OpCo.
Context on the decision:
•As we have now had the opportunity to engage directly with the MTN OpCo, concerns were raised about the scale of CTA Space and current capability and quality to deliver against 360 degree work.
•Even wth the willingness to scale up the agency and skills for MTN, MTN are wanting to start off with an agency that is more established in this regard.
We know that you have been looking at talent, and structures on your side and understand that this is not the outcome that you have been waiting for, however, the decision is unfortunately out of our control and has been
mandated by MTN.”
However, this website’s independent investigations show M&C Saatchi is not genuine in it’s claims that CTA Space was rejected by MTN Uganda.
Still unconvinced, Twaha Kakaire reached out to Jacques Burger, CEO of M&C Saatchi Abel, to seek redress and inquire about the decision-making process, but he was met with a stark clarification.
Jacques wrote: “The MOU doesn’t commit to any obligations from ourselves beyond putting yourselves forward as our affiliate partner in the Uganda market. It does not guarantee a contract or success, nor does it make any financial commitments.
With regards to the pitch itself, you contributed or delivered no work in terms of strategy or creative development. You submitted a rate card that had to be updated several times due to incorrect information and a credentials document. It is important to note this as you have not invested any creative or strategic pitch hours towards the pitch opportunity.”
MTN Uganda- M&C Saatchi claimed- had thoroughly reviewed CTA Space’s credentials and deemed the agency unsuitable for the Ugandan market. However, Jacques noted that “We have spent time understanding MTN Uganda’s point of view and following our additional assessment based on our experience around your rates submission, market research, and reviewing your credentials again, we are aligned to their view. Please note, we are not saying that you are not a good agency, but you are not an ideal partner for MTN in Uganda.”
As Twaha sought to understand the situation and save his dream fully, he learned that M&C Saatchi Abel had instead contracted Creatabuzz Communications, an outfit previously called Limelight and an affiliate of TBWA, an Omnicom company that had previously handled the MTN account in Uganda and across the continent.
And now, M&C Saatchi- we understand- intends to proceed and formalize this arrangement with the new agent, Creatabuzz, together with MTN Uganda, an action intended to arbitrarily exclude CTA Space Limited and breach the arrangement that was formally made.
The standoff drags on.
Watch this space!
