It raised a few eyebrows when it was confirmed by a number of planners at the Event Industry Summit that the requirement for paying all deposits and indeed full payments on behalf of their clients. The reasons provided were less than convincing in as much that clients could not pay for an event that had not taken place.
Many independent planners are in the invidious position of several millions of SA Rands being owed by their small businesses – with interest – to their (hopefully) highly friendly banker.
More concerning were some of the planners who were used as booking ‘mules’ to secure and pay for venues and services in advance with the express instruction that their involvement on the day is not required. Up to 20% between the venue and added interest for carrying the finance is charged by and made to the independent planner for awaiting payment over a possible 3 to 6 month period.
20% of (say) R5m is no small change for doing absolutely nothing but being a ‘go-between’ due to fuzzy internal systems and seriously questionable accounting methods.
