Melita has removed its large advertisement from City Gate, Valletta following complaints in the media - but the announcement has aroused suspicion over how the banners were allowed in the first place.

A spokesman for the company said it was the Valletta council which gave the permission after Melita presented the visuals for approval. The company also said it had paid the council to use City Gate as advertising space.

But it turns out the company still did not have the necessary permits since it was asked to remove the advert by the Land Department and the planning authority.

When contacted, the council denied it had given the company any permission and said the only thing it had told Melita was that it had "no objection" to the advertising. A spokesman added that the council had no jurisdiction to allow the hoarding in the first place.

Strangely, however, later in the day a joint statement was issued saying an agreement had been reached for Melita to become the council's official telecoms provider in return for such advertising.

The agreement specifically mentions that "Melita will make use of City Gate for affixing signs with the approval of the council", the statement said.

The council was fully aware of the project since final visuals were sent prior to installation and it granted permits for works to take place, it added.

Melita is also using the euro changeover countdown clocks around the island to help generate publicity for its launch of mobile services.

cperegin@timesofmalta.com