Media statement by Teresa Kok Suh Sim in Kuala Lumpur on Saturday, 29^th October 2011:

Tourism Ministry's mismanagement of public funds - Datuk Seri Ng Yen Yen should stop making excuses for not using Open Tenders

The Ministry of Tourism of Malaysia (MoT) must not make unfounded excuses as to why it chose to engage in direct bookings - as opposed to open tender processes - in relation to its paid advertisement contacts.

The recent Malaysian Auditor-General Report for 2010 states that 72% of the advertisement contracts secured by the MoT were via direct negotiations with various providers rather than through a process of open tenders. The A-G report also noted that these contracts were completed without the approval of the Ministry of Finance (MoF). Such a mismanagement of government process - and public funds - is unfair on the rakyat, especially during this time of financial struggle among Malaysians.

Further, the Tourism Minister Datuk Seri Ng Yen Yen's justification of such contracts is tremendously weak and irresponsible and this cannot be allowed to go unaddressed as there are precedents that must be set in order to protect taxpayers money as opposed to protecting business relationships with handpicked media outfits and suppliers.

The Minister claims that direct contracts were secured to avoid "intermediaries" who charge 15% commission on advertisement deals.[1] This seems a very weak argument, as it is common knowledge that through a competitive open tender process, media agencies would offer highly competitive prices and cater proposals to match the market rate. It has been my experience in discussions with some media experts that there are media agencies that even return rebates of up to 17% in its proposals. Beyond this, in trying to secure these government contracts - especially ones as significant as the MoT's - media experts who handle and strategise bookings would know to meet the needs of such a client given the benefits it brings to the nation.

Open tenders create healthy competition and ensure deliverables. Such a practice contributes to the avoidance of dependency on only a few service providers and ensures quality outputs as opposed to shabby and questionable outcomes. Undesirable results - such as seen in previous MoT contracts, specifically in the case of the 'metal pamphlet racks' that were purchased at an outrageous price - can be circumvented.[2]

Therefore, I suggest that the MoT adheres to the policy directives of the MoF, practices ethical contract agreements via open tenders, and manages the duit rakyat with utmost care and responsibility. The A-G's report and recommendations for a prompt investigation into the MoT's actions must be taken up by the government without fear of favour and done so speedily and transparently.

[1] 'Tourism Ministry: Ad Spending Above Board', Aidila Razak - Malaysiakini 28 October 2011, (http://www.malaysiakini.com/news/179869).

[2] '2010 AG Report: Investigate Tourism Ministry and suppliers' direct deals', Pauline Wong - The Sun Daily 25 October 2011, (http://www.thesundaily.my/news/187867)

* Teresa Kok Suh Sim, DAP National Organizing Secretary, Selangor State Senior EXCO for Investment, Industry & Trade & MP for Seputeh