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Tuesday, November 8, 2011

Tourism Ministry probes RM1.95m pamphlet rack deal


November 07, 2011

The racks were commissioned to hold pamphlets for the Visit Malaysia Year 2007 campaign.
KUALA LUMPUR, Nov 7 — The Tourism Ministry is probing a RM1.95 million purchase of 1,000 pamphlet racks for irregularities after the transaction was highlighted in the Auditor-General’s Report for 2010, Bernama Online reported today.

Secretary-general Datuk Dr Ong Hong Peng reportedly said today the ministry had approved RM1.7 million as payment for 873 racks, adding that all were delivered.

In his report, the Auditor-General found that the ministry spent a whopping RM1.95 million to buy 1,000 racks — RM1,950 per rack — to hold its tourism pamphlets for the Visit Malaysia Year 2007 campaign, pointing out the move was done without the Treasury’s approval.

The Auditor-General also said it was also unable to confirm the distribution of 22 of the 1,000 racks as the ministry could not supply the note of delivery as proof of claim, while another 127 racks were also not accounted for.

It noted the ministry’s explanation that 622 racks had been distributed to hotels, 127 were “expired” by the contracted company, Leo Communications Sdn Bhd, due to “financial complications” and lack of storage space, and as many as 85 racks were locked in the company’s storage hold.

Ong later added that the investigation report is due for submission on November 18.

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