{"id":5010,"date":"2011-03-17T13:55:23","date_gmt":"2011-03-17T05:55:23","guid":{"rendered":"http:\/\/buletinonline.net\/v7\/index.php\/2011\/03\/ad-agency-says-was-asked-for-bribes-to-win-tourism-contract\/"},"modified":"2011-03-17T13:55:23","modified_gmt":"2011-03-17T05:55:23","slug":"ad-agency-says-was-asked-for-bribes-to-win-tourism-contract","status":"publish","type":"post","link":"https:\/\/buletinonlines.net\/v7\/index.php\/ad-agency-says-was-asked-for-bribes-to-win-tourism-contract\/","title":{"rendered":"Ad agency says was asked for bribes to win tourism contract"},"content":{"rendered":"<p><img decoding=\"async\" src=\"https:\/\/www.themalaysianinsider.com\/images\/uploads\/2011\/march\/17\/austen-zecha-march17.jpg\" border=\"0\" width=\"150\" height=\"215\" style=\"float: left;\" \/>The advertising agency behind the award-winning \u201cMalaysia, Truly  Asia\u201d tourism campaign charged today that it withdrew a bid to renew its  contract with the Tourism Ministry after being asked for bribes in  exchange for the deal.<\/p>\n<p>Integrated Strategic Communications\u2019 (ISC) complaints against the  ministry are already being probed by the Malaysian Anti-Corruption  Commission (MACC).<\/p>\n<p>The agency said in a press statement today that it was rebutting  Tourism Minister Datuk Seri Dr Ng Yen Yen\u2019s denial of \u201cambiguity\u201d in the  tender process for the advertising and promotions contract, worth a  total of RM381 million.<\/p>\n<p>ISC founder and chief executive officer Austen Zecha<strong> (picture) <\/strong>alleged  that both he and his deputy were jointly approached on January 19 to  \u201coffer the client\u201d (the ministry) a 50 per cent \u201crebate\u201d or an annual  share of the firm\u2019s income from the account.<\/p>\n<p>In exchange, he said, ISC would then \u201cre-win\u201d another three-year  Tourism Malaysia contract for the Europe, North America and Oceania  tender.<\/p>\n<p>\u201cThis essentially led ISC to decide to withdraw its tender on Wednesday, January 26,\u201d Zecha said.<\/p>\n<p>He added that ISC\u2019s founders, shareholders, directors and management  had unanimously agreed that the incident was a \u201cgrave insult\u201d and that  it added further suspicion to the ambiguity of the tender process on a  whole.<\/p>\n<p>He pointed out that ISC had an \u201cimpeccable\u201d record in its work for  the \u201cMalaysia, Truly Asia\u201d campaign, which it has handled since 1999  through the terms of four successive tourism ministers \u2014 Datuk Leo  Michael Toyad, Datuk Seri Tengku Adnan Tengku Mansor, Datuk Seri Azalina  Othman and now Datuk Seri Ng Yen Yen.<\/p>\n<p>Zecha also repeated ISC\u2019s earlier allegation that it had been told by  the ministry that it could only bill Tourism Malaysia RM3 million both  in 2009 and 2010 for its previous three-year contract for Europe, which  was actually worth RM18 million annually.<\/p>\n<p>\u201cIt is only under this minister\u2019s administration \u2014 never ever before,  even prior to ISC\u2019s past four contractual three years of service or its  two predecessor agencies\u2019 previous three contractual years of service  covering the 1970s, 1980s and 1990s \u2014 did Tourism Malaysia allow ISC and  its two predecessor agencies to bill it only one-sixth of any year\u2019s  stipulated contract\u2019s worth, or only about 17 per cent.<\/p>\n<p>\u201cSo what happened to the other 83 per cent of each contract year\u2019s  worth of the RM18 million in 2009 and 2010, and who authorised and  benefited from the standard commissions of the other RM30 million of  invoices over the past two years?\u201d he asked.<\/p>\n<p>\u201cAnd does the government, especially the Treasury, allow for such  hidden euphemistically-called \u2018Direct Bookings\u2019 to deprive bona fide and  Treasury-registered companies to be basically \u2018short-changed\u2019 on  contracts\u2019 worth, and for which ISC duly paid Treasury the normal stamp  duties based on its stipulated contracts\u2019 worth?\u201d said Zecha.<\/p>\n<p>He also called into question Ng\u2019s involvement in the issue, pointing  out that the latter\u2019s remarks in Parliament on Tuesday had contradicted  her earlier statement that she was unaware of the five companies that  were each awarded three-year contracts, totalling RM381 million or RM127  million per year.<\/p>\n<p>\u201cPreviously, the minister was quoted in the media as saying she did  not even know any of Tourism Malaysia\u2019s five tenders were awarded to any  of her \u2018friends\u2019 but now she seems to acknowledge knowing at least two  of them,\u201d he said.<\/p>\n<p>Ng had been forced to explain the situation to Parliament when she  was questioned by the DAP\u2019s Jelutong MP Jeff Ooi if the five contracts  had been awarded to crony companies through the use of political  connections.<\/p>\n<p>One of the tender winners was Impact Creations Sdn Bhd, which is said  to have been selected because Juni Ewe, the managing director of Impact  Challenger Sdn Bhd, allegedly related to the first company, is a friend  of Ng\u2019s.<\/p>\n<p>Ng denied that the two companies were related.<\/p>\n<p>Ooi had also asked if the award to Naga DDB Sdn Bhd was through a  political channel as its founder and executive chairman is Datuk Vincent  Lee Fook Long, who is also the executive deputy chairman of the  MCA-owned Star Publications (Malaysia) Bhd.<\/p>\n<p>Ng is a vice-president of the MCA, the second largest component party in the ruling Barisan Nasional.<\/p>\n<p>The five recipients of the tenders were Naga DDB for the Asean market  with a contract value of RM25 million a year, SMASCOM &amp; Designs Sdn  Bhd for East and North Asia (RM25 million), Sen Media Sdn Bhd for South  Asia, West Asia and Africa (RM26 million), M&amp;C Saatchi Sdn Bhd for  Europe, America, Oceania (RM21 million) and Impact Creations for  domestic and events (RM30 million).<\/p>\n<p>Ng was also urged to clarify her denial that her ministry was now  under MACC investigation and had its offices raided last Friday.<\/p>\n<p>She explained that she was the one who invited the MACC in order to clear the ministry\u2019s image following ISC\u2019s \u201clies\u201d.<\/p>\n<p>\u201cWe cannot say that just because a company has failed to secure a  tender, after getting it for 12 years at a value of more than RM160  million, and now it has raised all kinds of things.<\/p>\n<p>\u201cAs a minister, it is my responsibility to ensure that the truth is  told, not only the lies,\u201d she was quoted as saying in theSun daily.<\/p>\n<p>But Zecha argued that ISC had not \u201cfailed\u201d to secure the tender but  had withdrawn itself from the bid on January 26, long before Tourism  Malaysia decided on and announced the winners on February 7.<\/p>\n<p>He asked if Ng\u2019s statement meant that the latter had already known even before ISC withdrew its bid who would win the tender.<\/p>\n<p>\u201cIs that why only this time there were no actual agencies\u2019  presentations called for, which, as she has said publicly too, was what  Treasury told her ministry to do? This should now receive the MACC\u2019s  fullest attention, indeed, because something here does not jive,\u201d said  Zecha.<\/p>\n<p>The MACC raided the offices of Impact Creations and the Tourism  Ministry last Friday following ISC\u2019s complaints on the tender process.<\/p>\n<p>Zecha also denied a statement by former Culture, Arts and Tourism  Minister Tan Sri Abdul Kadir Sheikh Fadzir that the \u201cMalaysia, Truly  Asia\u201d slogan was created by him, insisting that the award-winning  campaign was its own initiative.<\/p>\n<p>\u201cIndeed, as we had already stated earlier this week, if it had been  then-Tourism Minister Datuk Seri Kadir\u2019s idea, why did he have to call  us in when in May 1999 ISC was not yet a member of Tourism Malaysia\u2019s  panel of agencies?<\/p>\n<p>\u201cIf it had been his idea, why not just give the concept or strategy  to one of his existing panel of agencies\u2019 members then?\u201d he asked.<\/p>\n<p>Zecha said that to put the matter on record, ISC will be engaging  with legal parties, both local and abroad, as well as all participants  in its 1999 pitch to Tourism Malaysia, to bear testimony and witness to  the fact that the campaign had been its own initiative.<\/p>\n<p>\u201cThey will help bear witness to the fact that ISC \u2014 led by our  then-chairman, co-founder and investor Datuk Mukhriz Mahathir and yours  truly \u2014 presented our conceived and subsequently developed \u2018Malaysia:  Truly Asia\u2019 international re-branding for Tourism Malaysia as an  unsolicited and requested by and accepted on-the-spot by then-Tourism  Minister Datuk Seri Kadir,\u201d he said.<\/p>\n<p>Zecha also urged the MACC to investigate why Abdul Kadir\u2019s statement had only been reported in the MCA-owned<em> The Star<\/em> newspaper.<\/p>\n<p>\u201cBizarre or coincidence or collusion, that hopefully is also for the MACC to determine,\u201d he said.-MalaysianInsider<\/p>\n","protected":false},"excerpt":{"rendered":"<p>The advertising agency behind the award-winning \u201cMalaysia, Truly Asia\u201d tourism campaign charged today that it withdrew a bid to renew its contract with the Tourism Ministry after being asked for bribes in exchange for the deal. Integrated Strategic Communications\u2019 (ISC) complaints against the ministry are already being probed by the Malaysian Anti-Corruption Commission (MACC). The [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[35],"tags":[],"better_featured_image":null,"_links":{"self":[{"href":"https:\/\/buletinonlines.net\/v7\/index.php\/wp-json\/wp\/v2\/posts\/5010"}],"collection":[{"href":"https:\/\/buletinonlines.net\/v7\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/buletinonlines.net\/v7\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/buletinonlines.net\/v7\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/buletinonlines.net\/v7\/index.php\/wp-json\/wp\/v2\/comments?post=5010"}],"version-history":[{"count":0,"href":"https:\/\/buletinonlines.net\/v7\/index.php\/wp-json\/wp\/v2\/posts\/5010\/revisions"}],"wp:attachment":[{"href":"https:\/\/buletinonlines.net\/v7\/index.php\/wp-json\/wp\/v2\/media?parent=5010"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/buletinonlines.net\/v7\/index.php\/wp-json\/wp\/v2\/categories?post=5010"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/buletinonlines.net\/v7\/index.php\/wp-json\/wp\/v2\/tags?post=5010"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}