Visit Malaysia Year - The 'Korean scandal'

The government had introduced the Visit Malaysia Year campaign to generate profit for the tourism industry, the spoils of which is to be shared by the nation.

In South Korea, however, it is alleged that the campaign is also enriching a few high-ranking Malaysian government officers.

Sources are accusing director of Tourism Malaysia ™ Seoul Abdul Mutalib Awang and TM North Asian regional director Ramzi Abu Yazid of abuse of power and embezzlement.

The sources also furnished Malaysiakini with documents to show that both Mutalib and Ramzi are allegedly transferring funds meant for promoting Malaysia as a holiday destination to South Koreans into their own pockets.

And how did they do it? According to the sources, the modus operandi was simple.

Sometime early last year, Ramzi suggested that TM South Korea produce a video containing shots of tourist attractions in Malaysia to be used for promotional purposes.

Mutalib agreed and subsequently announced that the tender for the video production would be opened for bidding. The tender was later awarded to South Korean-based Sekyung Communications Co Ltd.

Payment to Sekyung Communication was made after obtaining approval from Mutalib via bank transfer. It is alleged that Ramzi and another Malaysian-based graphic designer would ‘pick up the money’ and transfer the sum to a bank in Malaysia.

Sources alleged that Sekyung is actually a “bogus” company set up by Mutalib through several of his Korean friends.

A check with the Korean Tax Office, a public body that has information on all registered South Korean companies, showed that the company existed merely in name.

Dubious quotation papers

Another point raised by the sources is that the quotations papers submitted by Sekyung on May 13 last year bore the letterhead of a printing firm - Sung Woo Printing - and not Sekyung.

In the papers, Sekyung demanded an initial payment of 104,112, 250 Won to start shooting for the video. The full payment charged for the video was 213,468,750 Won (about RM850,000).

After TM Seoul, with Mutalib’s approval, agreed to the amount, Sekyung issued an invoice dated July 23, 2007. However, the invoice was also alleged by sources to be fake.

“The invoice had a different address and telephone number, not the address and telephone number the company had initially registered with,” said the sources.

The sources added that the South Korean government is strict when it comes to company addresses and telephone numbers and the Korean Tax Office must be notified if there are any changes to these.

Sources claimed that Mutalib and Ramzi issued a fake invoice to avoid complications, knowing that it would not be scrutinised by TM Seoul since ‘the number person in the office is an accomplice’.

Committee probes deal

TM Seoul’s intention of producing the promotional video also came under scrutiny by the TM headquarters in Malaysia, where an ad hoc committee set up to study the video production found that the quotation papers submitted by Sekyung lacked the necessary details.

The TM headquarters, in a letter to TM Seoul dated Aug 5, demanded an explanation from Mutalib and Ramli regarding three issues:

- Why the quotation papers issued by Sekyung did not include in detail the scope of work required for the video production and that one of the documents had the letterhead of TM Seoul printed on the back?

- Why was the cost of the video production so exorbitant?

- The scope of work mentioned in the documents issued by Sekyung did not indicate that the company has any experience in video production.

Following the issuance of this letter, sources told Malaysiakini that both Ramzi and Mutalib were instructed to return to Malaysia for questioning.

“But so far we have learnt that no action has been taken against them. What was even more shocking was that Ramzi got promoted!” said the sources.

When contacted, TM headquarters confirmed that Ramzi had been promoted as Senior Deputy Director of the North/East Asian Promotion Division.

Minister implicated

Meanwhile, the sources also implicated Tourism Minister Tengku Adnan Tengku Mansor in the alleged scandal. They claimed that he was aware of the irregularities but chose not to act.

“We were shocked when staff from TM Seoul confirmed that Tengku Adnan and his family went for a ski trip with Mutalib’s family when the former visited South Korea a few weeks ago despite knowing about the serious allegations of corruption against Mutalib,” alleged the sources.

Syed Jaymal Zahiid