Reports emerged on Thursday morning that the Advertising Standards Authority (ASA) is close to being shut down and is currently in business rescue.
ASA is primarily funded by media organisations and provides guidance on whether adverts can be shown or not when the public lodge complaints.
According to the _Times, _there is not enough money to pay retrenchment packages to those who lost their jobs last week and employees have not been told when they will be paid their May salaries.
Acting CEO Gail Schimmel says the business has been facing funding issues as well as management problems but she has been tasked with the mandate of resolving these.
It is a very complicated story - it is a combination of funding issues, it involves unfortunate litigation and there also has been some management issues in the past.— Gail Schimmel , acting CEO
The problem is that we are sitting now with historic debt that has to be paid and funding needs for the next few months while we renegotiate that long time funding.— Gail Schimmel , acting CEO
Click on the link below to listen to the full audio....
This article first appeared on 702 : Advertising Standards Authority may have to close its doors