Volkswagen fourth major client to query Mediacom account

Volkswagen Australia has joined a band of blue chip clients of media agency Mediacom to say it is “reviewing” whether it has been overcharged for media space over reported irregularities on its TV reporting figures.

On Friday Mumbrella revealed external auditors have been brought in to look at accounts of major clients in Australia’s second biggest media agency including Foxtel, Yum Brands, whose brands include KFC and Pizza Hut, with insurer IAG emerging yesterday as the third client to be impacted. 

This morning’s The Australian quotes Volkswagen Australia saying it is also “reviewing our accounts with Mediacom”, referring to the reporting on its campaign performance reports for television advertising, “in the light of the recent reports”.

Yesterday Mediacom CEO Mark Pejic confirmed the external audit, being conducted by Ernst and Young, would take “a number of weeks”. In today’s report GroupM chairman John Steedman says the “irregularities” are confined to a handful of clients of Mediacom Sydney that had been “ring-fenced” and did not extend to WPP’s other media agencies Maxus, Mindshare and MEC.On Friday, Mediacom’s CEO Mark Pejic said one member of staff has been fired and another suspended. It is also understood that as many as ten other staff members have resigned, although it is not alleged the staff resignations are due to any direct wrongdoing.