Both a municipal spokesperson and the regional manager of Combo Sign this week categorically denied that any municipal official benefits financially from the signage project in town.

The municipality could, however, not give finality on the issue whether any official had submitted a declaration of interest in the project.

On virtually every street corner, concrete rubbish bins with street names and sign boards have sprung up. Brand new route directional sign boards with businesses advertising at the bottom also adorn many a corner.

Local businesses wanted to know why the municipality did not put the signs out on tender. Mr Peter Magwala, Director Corporate Services, said that they were approached by the Bloemfontein-based company more than 18 months ago. There are no financial implications for the municipality.

“How do you put out a tender and say ‘who wants to render services free of charge’,” Mr Magwala said.

“We supplied the Combo Utility Units (concrete bins with street names) and RDL’s (route directional signs) for free. It cost us R800 000 to a R1 million. We invested in Louis Trichardt,” said Combo’s regional manager, Mr Faan Delport. Businesses pay R650 for the three advertisement boards on the concrete bin per month, that is R200 to R300 rent per month per board. The amount includes the artwork, manufacturing, delivery, erecting, maintenance and insurance for five years. Mr Delport confirmed that the boards are manufactured by Combo Sign in Bloemfontein.

The whole situation caused an outcry from local signage businesses. They submitted an extended list of questions to the municipality who passed it on to Mr Delport. He gave the assurance that the company’s Managing Director will answer all the questions in writing early in the new year.

The main complaint is that business is taken out of town and even out of the province. Furthermore, it is argued that Council opted to use an outside company, rather than to support local signage companies, and that local signage businesses are prohibited from benefiting from the project.

Mr Magwala said that Council does have a regard for local businesses, but that there is no company in town that can render such a service.

Council has signed an agreement of five years with Directosign Outdoor Media, which includes Combo Sign, responsible for the Combo Utility Units (the concrete structures with signage). The agreement commenced on June 1, 2005.

The agreement states that Council has accepted the company’s application for the right to erect signs within the area. The “signs” include the Combo Utility Units, non-illuminated street names, the free installation of Suburb Name Boards and Directional indicators, a map structure with information signs and the installation of advertising on lampposts. An option for a further five years was granted.

Mr Delport said that they have a right to erect signs, but not the sole right. The agreement between the company and Council reads: “The Council has accepted the application for the right to erect signs within the area.”

It was agreed between Council and the company that structures and signs at entrances and on street corners be erected, but that the signs shall only be erected at such places as determined by Council after the written consent for the situation of a specific structure has been obtained by the applicant. The company takes all responsibility to repair any damage to the signs. Directosign indemnifies the council against any claim.

“We are responsible for all claims arising from accidents, and so forth, and not the municipality,” said Mr Delport.

Another clause reads that the applicant shall remove all structures and signs at the termination of the agreements at its own expense.

On the question on how local signage businesses could be a part of this project, Mr Magwala replied: “It does not mean that all doors are shut. Local businesses can put a formal request in writing and supply all information and cost structure. If there are local people who can supply the same product at the same cost structure, we’ll look at their request.”

Mr Delport said that some local businesses have supplied their own boards on the concrete bins. He said in those cases Combo Sign does not carry the guarantee. Mr Delport said that he would definitely look at requests from local signage companies that applied via the municipality.

“We have an overwhelming response from businesses who want to advertise through us. The cyclist community also approached us to erect free route indicators for the Kremetart Race. We do bring money back and support the community,” said Mr Delport. He indicated that they had already subcontracted a local company to help with the concrete bins.