In 2017/18 Avatar was embroiled in an alleged tender “irregularities” scandal, which alleged that Avatar was overcharging BrandSA.
It was previously reported that documents appeared to suggest that in addition to its R689 700 monthly retainer, Avatar Agency charged BrandSA an extra R97 459 in one month for “website hosting” and “excess website traffic” for its three websites, while the web hosting company Avatar used charged significantly less for the service(s).
However, an investigation report commissioned by BrandSA to an independent accounting firm BDO indicates otherwise to allegations made against Avatar. The report highlights the following:
“Amendments were requested and initiated by BrandSA during the Service Agreement process which Avatar responded to by reconfiguring costs related to the amended services required.” And furthermore “Invoices were issued in line with the agreement which was signed off by management of both parties based on services delivered. Additional services as per extended scope were rendered and invoiced.”
BDO also found that “website hosting charged by Avatar as per scope extension is deemed market-related” contrary to allegations.
The report also states that the traffic costs and other website hosting related costs are deemed market-related, including all additional services rendered by Avatar were deemed market-related.
The summary of the BDO report can be downloaded HERE.
BrandSA could not be reached for comment and Avatar declined to comment.