MCMC Looted, Shady ‘Speedy Gonzales’ Deal Resurfaces – Part 7 (Decaying Padu Is A Great Shame To Nation!)

Minutes of JK Pemandu of MOE meeting on 5-3-2018 page 2

Updates on 9-8-2019 @ 3:00 pm:  At last PADU saw it fit just to upload its Annual Report 2018, which was marked “Coming Soon” in PADU’s website. Nothing was written about the. scandalous tablet project in the said report. PADU couldn’t talk about it in its  said report because PADU knew from day one that it was just a very questionable project! 

Updates on 7-8-2019 @ 10:45 am:  It was reported in Sabahkini today that the KSU of MOTAC, which is one of the most scandal ridden ministries, Datuk Isham Ishak, was detained by MACC for the investigation into the original “Speedy Gonzales” Geeko deal of RM99.693 million with Tourism Malaysia (TM). 

On 9 -1-2019 Dato’ Dr Siew Ka Wei, the former chairman of TM and executive chairman of public listed Ancom Bhd and MD of the defunct Malay Mail, and his Redberry media specialist Ms Elizabeth Ken, who is also the shareholder and CEO of Geeko Tech, were detained by MACC for this scandal, HERE &  HERE.  Reliable sources in MOTAC has confirmed that Datuk Isham Ishak was not detained by MACC as reported by Sabahkini. Datuk Isham Ishak has been known to control the finances in MOTAC very tightly resulting in a few little napoleons in MOTAC and TM are not happy with him.

By co-incidence Dato’ Dr Siew Ka Wei, the corporate genius, and/or one of his outfits, Redberry Sdn Bhd, also surfaced in the tablet scandal involving PADU, HERE & HERE.

 

Updates on 3-8-2019 @ 11:45: Yours truly has just added the Jawatankuasa Pemandu of MOE‘s minutes of meeting (Siri Khas – 3/2018) dated 5 March 2018.  The all powerful former CEO of PADU, Puan Khadijah Abdullah, was present in the said meeting, and knew that the tablets in Phase 4 were off specs. It was a fundamental breach of contract but Khadijah chose to make payments, after payments. No wonder she was hand picked to be  part of Bank Negara MalaysiaI! What a joke!  Please read on to know her ZERO governance as CEO of PADU. 

 

The corrosive effect of the bombed RM360 million project to provide free 430,000 computer tablets to teachers nationwide is degrading sound governance in the public sector.

The funds came from MCMC, which is under purview of the Ministry of Communications and Multimedia. YB Gobind Singh Deo, the Minister has reported to have said that the two funds (MCMC Fund and USP Fund) will be independently audited, HERE.  When the news of the abuse of MCMC Fund broke out,  on 16 July 2019 YB Gobind had announced that his ministry will lodge a report with MACC, HERE.  It is unclear whether the ministry had lodged a report with MACC.

PADU Corporation is a company incorporated by guarantee under the Ministry of Education (MOE). It continues to act with impunity, fuelling secrecy around its deal with project contractor, Utusan Melayu (Malaysia) Berhad (Utusan).

PADU’s clandestine financial manoeuvring has also seen millions of ringgit uncontrollably going into the coffers of the main contractor, Utusan, supplier of the gadgets, Epiweb Sdn Bhd and a totally uninvolved company, media group Redberry Sdn Bhd (Redberry), in the agreements between PADU – Utusan and Utusan – Epiweb Sdn Bhd. .

Desperate to cover up questionable acts, PADU failed to mention the mega tablet project in its 2016, 2017 and the latest 2018 Annual Reports.

That’s a major mistake that reeks of scandal and abuse of taxpayers’ money.

Why there Was Total Silence Of The RM360 million Tablet Project in The PADU’s Annual Reports?

PADU’s 2018 Annual Report was launched last week but not uploaded in its website up to now! Something to hide?

By not including in the PADU’s Annual Reports for 2016, 2017 and 2018 (2018 Annual Report was launched last week but in its website it is shown “Coming Soon”) the tablet project that was meant to digitalise education in public schools, it is crystal clear that the Padu topLESS management is very embarrassed over the dubious dealings. What are they trying to hide? Or they knew that this tablet project was just a shady deal from day one! We can only guess from the conduct of the little napoleons in this dubious transaction.

Obviously PADU was trying to keep the project a secret and perhaps thought no one would dig into the glaring irregularities.

This blog has in recent weeks published exhaustive reports into the whole affair, along with supporting documentary proof of how the project was grossly mismanaged in broad daylight by the little napoleons, Part 2, Part 3, Part 4, Part 5 and Part 6.

All Payments Made by Padu Into Special Purpose Vehicle Account – Why The Eagerness To Pay?

Troubling questions abound and one that is weighted around the neck is: Why was PADU was so eager to make payment to the special vehicle accountUtusan-Epiweb Collection Account”?

It is also baffling that Redberry, which was never a party to the contracts benefited greatly from the project, unless of course, the company through its supremo Dato Dr Siew Ka Wei, who is also a corporate wizard, had been pulling the strings from the very start.

On 13 June 2016 Dato Dr Siew Ka Wei attended the Pre-Price Negotiation of the Tablet Project meeting as an Utusan’s representative when he was not an employee of Utusan, HERE.

We know that in Phase 6 despite the Jawatankuasa Pemandu of MOE Reports of 5 and 8 March 2018 and the Jawatankuasa Pemandu’s decision not to proceed with the phase, PADU chose to ignore both and paid out RM18,402,690.25 without delivery of one single unit of tablet to the teachers up to now, HERE.

Why RM10,402,690.25 Was Paid Out from the Special Purpose Vehicle Account To Redberry?

We also know that upon receipt of the RM18,402.690.25 for Phase 6, RM8 million was paid to Utusan and RM10,402,690.25 to Redberry, which was not a party to contract between Padu – Utusan or Utusan – Epiweb Sdn Bhd.

The arrest and detention of Dato’ Dr Siew Ka Wei and Ms Elizabeth Ken, who is the CEO of Geeko Tech Sdn Bhd and media specialist of Redberry Media Group, which is an outfit of Siew Ka Wei.

Who is Dato Dr Siew Ka Wei?

Dato’ Dr Siew Ka Wei (Siew) was the former chairman of Tourism Malaysia, who was arrested on 9 January 2019 snd detained for four days by MACC pertaining to the “Speedy Gonzales” Geeko Tech RM99.693 million deal with Tourism Malaysia. Ms Elizabeth Ken was also arrested and detained together with him. Ms Elizabeth Ken is the shareholder and CEO of Geeko Tech Sdn Bhd.

Siew is the executive chairman of the public listed Ancom Bhd, group MD of public listed Nylex Bhd and MD of Redberry Media Group, which owned the defunct Malay Mail and Malay Mail online. Ms Elizabeth Ken is the media specialist of Redberry Media Group. The famous Datuk Wong Sai Wan is the editor in chief of Malay Mail and a directors of several of Siew’s outfits. – one of which is Titanium Compass Sdn Bhd that was awarded with exclusive advertising in the MRT stations in one of the routes, HERE.

Siew and his business partner Tan Sri Al Amin were extremely powerful under BN until the 14th GE.

Ms Elizabeth Ken signed as a witness in the agreement between Utusan – Epiweb Sdn Bhd for the supply and maintenance of the said tablets, HERE.

  • Why was Redberry paid RM10,402,690.25 in Phase 6?
  • Was Redberry paid under Phase 5?
  • How much in total was Redberry paid from Phase 1 to 6?
  • Were PADU and MOE aware that Redberry was getting paid? 

JK Pemandu of MOE Already Found Out in Phase 4 the Tablets Were Not In Accordance With  Specs! – Khadijah  Abdullah, the former CEO of PADU, knew about it!

On 5 March 2018 Jawatankuasa Pemandu of MOE met and decided as stated in the minutes below:

Minutes of JK Pemandu of MOE meeting (Siri Khas 3/2018) on 5-3-2018 – page 1

 

Minutes of JK Pemandu of MOE meeting on 5-3-2018 – page 2

 

Puan Khadijah Abdullah, the all powerful former CEO of PADU, was a member of JK Pemandu of MOE.  According to the above minutes of meeting of JK Pemandu of 5 March 2018,  Khadijah had full knowledge that the tablets supplied by Utusan under Phase 4 were NOT in accordance with the specs in the agreement. She was also part of the decision to examine those tablets that have not been delivered under Phase 5 and if those tablets found to be off specs, the supplies are NOT to be proceeded with.

As you read on you will no doubt see that Khadijah had no respect for rules and procedures / GOOD GOVERNANCE.  Khadijah chose to DEFY the above decisions of JK Pemandu of 5 March 2018 and MOE IT Department’s finding of 8 March 2018 (random check on the 20 tablets to be off specs).

On 8 March 2018 Random Check By IT Department of MOE On 20 Tablets in Phase 5 Not In Accordance To Specs

MOE Report 8-3-2018 cover page

 

MOE Report 8-3-2018 Page 2

 

MOE report 8-3-2018 page 3

 

MOE Report 8-3-2018 page 4

 

Try figure these out:

On 5 March 2018 Jawatankuasa Pemandu MOE  had already discovered in Phase 4 that the tablets were not in accordance with the specs and had decided to examine the tablets under Phase 5 before distribution. If those tablets found not to be in accordance with specs as per contract then the said tablets can not be distributed.  At the material time, Khadijah Abdullah was a member of Jawatankuasa Pemandu and had full knowledge of the tablets were off specs.

On 8 March 2018, Ministry of education (MOE) did a random check of 20 units of the tablets at Utusan’s warehouse and found that all the 20 Lenovo tablets were not in accordance with the specifications in the contract.

Despite Lenovo Tablets Not In Accordance With Specs – PADU Paid Out RM9,016,947.50

PADU’s Cheque dated 21 -3-2018 signed by the then “Hebat” CEO of PADU, Puan Khadijah Abdullah and counter-signed by Datuk Alias Ahmad, the then equally “Hebat” KSU/Chairman of Board of Trustee of PADU.

 

Despite this damning reports of 5 March 2018 and 8 March 2018, on 21 March 2018 PADU under the leadership of Khadijah Abdullah ignored the Jawatankuasa Pemandu’s said two reports and paid out RM9,016,947.50!

The MOE must come clean to explain why it allowed PADU to ignore or defy its two unfavourable reports of 5 and 8 March 2018.

MACC should also investigate why MOE allowed PADU to defy all rules and procedures in order to make payment.

The One Sided Payment Schedule for Phase 5

The one sided payment schedule.

Let’s look at Phase 5. The schedule of payment was extremely favourable to the vendor, Utusan or … .

Upon signing of “Surat Setuju Terima” (SST) by PADU and acceptance by Utusan, Padu paid the first 35% of the contract price (RM19,125,424.50 for Phase 5) – the first payment.

The 2nd payment of 25% was paid upon both parties signing all the documentation and presenting to PADU within 3 weeks – RM13,661,017.50.

The 3rd payment of 15% was paid upon PADU being in receipt of Bill of Lading – RM8,196,610.50.

In another words prior to delivery of a single unit of tablet to the teachers and without checking the specs, PADU paid out 80% of contract price – RM40,983,052.50! What a fantastic deal for the vendor, Utusan or … , of the tablets.

The 4th payment of 15% (RM9,016,947.50) under Phase 5 was paid upon confirmation that tablets were delivered to the warehouse of Utusan and delivery order issued by Utusan.

The 5th payment is the 5% retention sum held by PADU. In Phase 1 and 2 of this scandalous project PADU paid the 5% to Utusan based on the Utusan’s statutory declaration as proof of delivery, HERE.

In Phase 1, upon signing of SST and acceptance of it, PADU paid Utusan 95% of the contract price and remaining 5% retention sum was also paid out based on Utusan’s statutory declaration as proof of delivery!

From the above payment schedule, you don’t really need any capital do business with PADU. Padu is just vendor friendly by funding it upfront.

Khadijah Abdullah Has Been Appointed As An Officer In Bank Negara Malaysia???

The then ‘Hebat” CEO of PADU, Puan Khadijah Abdullah.

Here’s another thunderbolt: Yours truly has been informed that the then all-powerful “Hebat” CEO of PADU, Puan Khadijah Abdullah, is now been appointed as an officer in  Bank Negara Malaysia or its related agency.  How’s that for her zero governance in PADU and trust?

Besides what have been stated about the zero governance under her leadership in PADU, it was Khadijah who dared to exceed her authority upon the issuance of “Surat Setuju Terima” (SST) amounting to a whopping RM51,911,866.50 for Phase 5. This was not the only Phase that exceeded the RM50 million mark.

It is standard practice in PADU that SST above RM50 million be approved by the Board of Trustees of PADU.

So, can you blame the rakyat if they want to know the role of Khadijah, who does not care about proper governance and/or the law, in Bank Negara.

The deafening silence of PADU and/or MOE in the tablet scandal is most shocking.  Is MOE trying to help PADU cover up this scandal?

PADU is a national wastage. It should be shut down forthwith to save taxpayers’ money.

Stay tuned – Part 8

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One comment

  1. The tablet project was worth RM350 mil and yet nothing about it in the Annual Reports. What a joke. Get rid of those idiots in Padu and MO. They are good for nothing. Should be thrown into the longkang! Suspend the top management/parasites now.

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