Clarification over reported Tourism Ministry overpayment — Ritzeraynn Rashid

OCT 31 — We refer to your online news report entitled: "Auditor General: Tourism Ministry Overpaid RM270 million for Ads" (Monday, October 24, 2011).

We note that the article is misleading and factually incorrect. To set the record straight, we would like to provide an objective and accurate perspective to the readers as follows:

Did not overpay

a)  Ministry of Tourism and Malaysia Tourism Promotion Board (MTPB) did not in any circumstance overpay advertisers. The statement in the online portal (The Tourism Ministry overpaid nearly RM270 million for advertisements when it chose to use direct bookings instead of open tenders) is erroneous. In actual fact, the RM270 million in the AG report (Table 7.5, page 107) is the total advertising expenditure for both Open Tender and Direct Booking for two years (2009 and 2010). As such, the term "overpaid" has distorted the actual facts and needs to be corrected. It is also unfair to attribute this distortion of facts to the Auditor General.

Similarly, the statement (Paragraph 6, online portal) that, "if the ministry had held an open tender, its advertising spending would have cost RM75.38 million", is also incorrect. In fact, as in the AG Report (Table 7.5, page 107) RM75.38 million is the actual advertising expenditure incurred through open tender for two years (2009 and 2010). Therefore, it is erroneous to quote the AG in the report that the total advertising expenditure would only be RM75.38 million through open tender.

On the contrary, the decision to procure advertisements through direct booking has resulted in savings of RM19.93 million in 2009 and RM 20.9 million in 2010 (AG's Report, pg 108), which reflects prudent financial management.

Racks

b) The procurement and payment of the racks were in compliance with financial procedures. Payment was only made after obtaining approval from the Ministry of Finance (MOF), based on the number of racks received (i.e. 873 units).

In conclusion, we wish to highlight that LPPM has received from the Auditor General, a Clean Certificate (Sijil Bersih) for its audited financial statement, thus it shows that the financial position has true and fair views.

On that note, we appreciate it if you could make the necessary corrections in your online news reporting.

* Ritzeraynn Rashid is editor of the communications & publicity division,Tourism Malaysia

* This is the personal opinion of the writer or publication, and does not necessarily represent the views of The Malaysian Insider.

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