Summary of Tourism Msia’s RM99.693 million “Speedy Gonzales” GEEKO Deal!


KUALA LUMPUR 5/4/18, Left, Minister of Tourism and Culture Malaysia Datuk Seri Mohamed Nazri Abdul Aziz and Chairman of the Malaysian Tourism & Redberry Media Group, Siew Ka Wei launching Malaysia Smart Tourism 4.0 at Hotel Istana.  Siew is also the Chairman of Ancom Bhd.

This article has been updated with all the important documents to support what have been stated in this blog.

The article “Masa Sekarang Menunggu Mu” – Part 5 was to put on record the details of the “Speedy Gonzales”  RM99.693 millions Deal.  In this article yours truly has summarised all the salient facts  for ease of reference.  From the Chronology of Events below you will understand why your truly called this the “Speedy Gonzales Deal“.

It is an open secret that Malay Mail is one of the outfits of the famous Siew Ka Wei, who is the Chairman of Tourism Malaysia (TM) and also the Chairman of the public listed company, Ancom Bhd (“Ancom”).  The famous Redberry Media Group is part of Ancom too.  He is a very powerful personality in the corporate world and politically well connected to Najib’s regime.

Chronology of Events of the Speedy Gonzales Contract with GEEKO TECH SDN BHD

SSM Report on GEEKO on 23-5-2018

6-11-2017        The incorporation date of  Geeko Tech Sdn Bhd  (GEEKO”) (Co No: 1254344).

April 2018       RM1.3 million paid GEEKO –for “kajian untuk service on demand, data collection from hotels in Malaysia” . There was another “Kajian” to be done by Delloitte for the sum of RM2.5 million but could not be proceeded with because of procedural issues and that BN lost in the 14 GE.   TM was spared of RM2.5 million!

3-4-2018          Jawatankuasa Penilaian & Rundingan Harga (JKPTRH) met to evaluate the proposal by Geeko Tech Sdn Bhd with regards to the promotion of Malaysia through internet in China via Tencent’s platform for a total cost of RM99,693,000.00.  As expected this evaluation was just to follow through with the procedures or going through the motion.  JKPTRH did not reject the said sum and send it to Lembaga Perolehan “A” for its approval.

4-4-2018          YB Datuk Seri Nazri Aziz, the ex-Minister of Tourism and Culture and Datuk Siew Ka Wei, Chairman of Tourism Malaysia launched this “Speedy Gonzales” project in the afternoon at Istana Hotel.  See the Malay Mail report on top of this page, HERE.

Letter of Intent From TM To Geeko – Signed Datuk Mirza Mohamad Taiyap, DG of TM

4-4-2018 Letter of Intent signed by Datuk Mirza Mohammad Taiyap, DG of TM

4-4-2018          This Letter of Intent for the proposal of Digital Marketing for 2 years for RM99,693 millions from TM to GEEKO was signed by Datuk  Mirza Mohammad Taiyap (DG of TM) given to GEEKO. The third paragraph of the letter reads: “The relevant officers of Tourism Malaysia will be discussing with you on other specific terms and condition of the proposed advertising campaign.”  The time at which this letter was prepared and sent to Ms Elizabeth Ken was not stated.  This paragraph suggested it was still in the discussion stage and that no documentation had been prepared.

Letter of Acceptance from Geeko

4-4-2018 Letter of Acceptance from Geeko signed by Ms Elizabeth Ken

On the same day 4-4-2018 , GEEKO replied “We are delighted to accept the offer and agree to the content of the letter of intent.”  It was signed by one Ms Elizabeth Ken Tzu Ying.  Yours truly has been informed that in the month of April 2018 she had been quite a regular visitor in TM’s office and Datuk Siew’s office on 16 Floor.  She was able to roam around in TM freely.

Ms Elizabeth Ken’s shareholding in GEEKO

SSM Report shows Ms Elizabeth Ken Tzu Ying holds 1 share in Geeko

Who is this Ms Elizabeth Ken Tzu Ying?  Although she holds 1 share in GEEKO, she is very powerful in Geeko.  She signed all official documents.  Is she closely associated with any of the little napoleons or the chairman of Tourism Malaysia, Siew Ka Wei?  Your guess is just as good as mine.

The Minutes of Lembaga Perolehan “A”

4-4-2018 Lembaga Perolehan “A” of Ministry of Tourism meeting

Item 1.3 of the Minute of Lembaga Perolehan “A”

Item 1.3 of the Lembaga Perolehan “A” Minutes
The signing page of the minutes of the meeting of Lembaga Preolhean “A” on 4-4-2018 which ended at 1:15 pm.

Under item 1:3 of the minutes of  Lembaga Perolehan “A”  states “…setiap perolehan yang akan dibincangkan di dalam LPA ini mesti mempunyai peruntukan yang mencukupi. Sekiranya tiada peruntukan, mesyuarat ini tidak boleh diadakan, sebagaimana dinyatakan dalam SOP Tempahan Terus Media LLPM 2018”. 

Your truly has been reliably informed that at that material time TM has no budget  or ready fund for this project costing of RM99,693,000.00 In fact, as it were TM has been operating with a few hundred millions RM deficit for the past few years!

4-4-2018          At 11:45 am Lembaga Perolehan “A”  (Tempahan Terus Media) met as can be seen from the minutes above.  It was chaired by Yg Bhg Datuk Rashidi bin Hasbullah, KSU of Kementerian Pelancongan & Kebudayaan Malaysia.  It was attended by Datuk Seri Mirza Mohammad Taiyap (DG of TM) and Tuan Syed Nasir Syed Ahmad (Rep from MOF). The meeting ended at 1:15 pm.

Memo From Bahagian Pentadbiran TM

4-4-2018 Memo from Bahagian Pentadbiran of TM

4-4-2018          It had to be well after 1:15 pm (Lembaga Perolehan A ended its meeting – see: minutes above) of 4-4-2018 that Bahagian Pentadbiran TM sent a memo to Bahagian Pengiklanan & Digital to inform that Lembaga Perolehan “A” has approved the “Proposal Papers for Internet advertising in China using Tencent Platform for 2018 – 2020” with the total cost of RM99,693.000.00 for two years.

4-4-2018          Pengarah Bahagian Pengiklanan minuted on a memo:   “Untuk tindakan segera bagi penyedian kontrak”.  This instruction had to be made well after 1:15 pm when the Lembaga Perolehan ‘A” had ended its meeting.

The GEEKO Agreement

Puan Nor Razifah Siarap (the sister of Datuk Kamarudin Siaraf, the former DG of TM) the TM’s Senior Legal Officer was very efficient and brilliant that within a few hours she got the 14 page Agreement done the earliest had to be well after 1:15 pm of 4-4-2018 (the time the Lembaga Perolehan “A” ended its meeting).   Of course, it was a very simple agreement with no termination clause in place. This is very unusual for government contracts.  Presumably, Ms Elizabeth Ken was equally efficient and had read through it without any amendment and executed it.  From hereon, everybody must be very happy for a job well done!

The “Speedy Gonzales” Contract

First page of the “Speedy Gonzales” GEEKO’s Agreement.
Clause 4: The speedy deal cannot be terminated, which was unusual in government contract.

4-4-2018          The “Speedy Gonzales” Agreement between TM and GEEKO was signed by Yg Bhg Datuk Mirza Mohammad Taiyap (DG of TM) and Ms Elizabeth Ken (for Geeko Tech Sdn Bhd). She holds only 1 share in Geeko and was not even a director of Geeko.  Clause 4 at page 3 of the agreement provides no termination right for TM (see picture above.  It is not the standard form of agreement for government agencies.  It is a condition precedent that all agreements involving all contracts for government agencies must have a termination clause. But in TM the little napoleons can do anything as they like even in violation of the MOF Procurement Regulations.

MOF Certificate of Registration of GEEKO

MOF’s Certificate of Registration of GEEKO

4-4-2018      Two days before registration with MOF, the Lembaga Perolehan “A” had already approved the GEEKO’s proposals and the “Speedy Gonzales” Agreement was already executed by Datuk Mirza on behalf of TM.  It is extremely unusual for the government agencies to consider any proposal from any company, let alone signed an agreement,  if the company was not registered with MOF.  This is against item 7.15.2 (2.1.2)  Tata Peroalehan Perkhidmatan Penyiaran Pengiklanan Melalui Media Cetak (Slot Iklan – Advertisement Space) dan Media Elektronik.  This GEEKO deal must be a very “extraordinary” deal that the Ministry of Tourism and Culture and TM could ignore the said MOF’s Procurement Regulations and other rules.   Is this a “special Purpose Vehicle” contract?  

MOF Procurement Regulations

6-4-2019          As we can see from above that Kementerian Kewangan (MOF) had only  issued the “Sijil Akuan Pendaftaran Sayarikat” to GEEKO on 6-4-2018.   All  the processes of approving the GEEKO’s proposals and signing of the agreement were already completed on 4-4-2018 (2 days before registration).  The above events prior the said registration were in clear violation of the Procurement Pegulations PK 7.15 of MOF that is applicable to all government department and agencies.  Please see below.

Rules PK 7/15 of Ministry of Finance
PK 7.15  (2.1.2.2) MOF Procurement Rules

6-4-2018          The then PM YAB Datuk Najib made an announcement to dissolve Parliament

7-4-2017          Parliament was dissolved

Letter of Appointment

Letter of Appointment dated 10-4-2018 signed by Datuk Mirza Mohammad Taiyap, the DG of TM.

10-4-2018       Letter of Appointment from TM signed by Yg Bhg Datuk Seri Mirza Mohammad Taiyap.  This was done 6 days after the execution of  the said “Speedy Gonzales” contract. It was a case of putting the cart before the horse! This also showed TM was in the rush to get this “Speedy Gonzales” Deal through at all costs. They have lost their sense of directions.

10-4-2018        Acceptance of TM’s letter of Appointment by GEEKO on the same day.

25-4-2018        GEEKO sent “Work Completion Certificate” signed by Ms Elizabeth Ken Tzu Ying. Your truly is not sure whether at this material time all the conditions under the said contract have been fulfilled.

Certificate of “Work Completion”

27-4-2018 Yg Datuk Seri Khani Daud, Deputy DG, issued a Certificate for payment of RM11 mil plus

27-4-2018        TM issued “Certificate of Work Completion” for GEERKO’s  Invoice NO: 002/2018.  It wassigned by Datuk Sri Khani Abdul Khani Daud (Deputy DG of TM), who had also recommended payment of RM11, 963,160.00 for “production scrip, scripting, shooting location identification channel booking and initial mobilization for the said Production Work”.  Datuk Seri Khani Daud was also very efficient!  The payment was processed with lightning speed!

On or about 6-5- 2018         A few days before 14 General Elections TM made a payment of RM11, 963, 160.00 to Geeko presumably based on Datuk Seri Khani’s recommendation of 27-4-2018.     Reliable sources have confirmed that at that material time TM has no budget or ready fund to pay this RM11,693,000.00 at that time.  It was due to the little napoleons’ intelligence and expertise on “creative accounting” process that they managed to make the payment.  It was taken from the sum that was  reserved for Visit Malaysia 2018 – 2020 Campaign. So “BUNGKUSlah” the Visit Malaysia Yea for 2018 – 2020.  No worries we have “Cuti-Cuti Malaysia“.

9-5-2018          14th GE Polling Day

The above events and documents clearly shown this “Speedy Gonzales” Deal smells a rat!

The few pertinent questions are:

  1. Does TM need a small private limited company of 5 months old with a very small capital of RM100,000.00 and no past record to connect it with Tencent  Holding?

  2. Why TM has the habit of going through a third party to do media buy and etc?

  3. Why TM prefer Direct Contracts than Open Tender?

  4. Is this GEEKO a “special purpose vehicle” for someone in TM and/or  Ministry?

  5. Why this Geeko “Speedy Gonzales” deal cost only RM99.963 million and not RM100 mil?   Was the contract price fixed at RM99.963 million to avoid the mechanism of open tender?

Your truly has been informed that this matter has already been reported to MACC HQ.

Now it is for Yg Tan Sri Ali Hamsa, KSN, to instruct the Auditor General to move into TM and Ministry of Tourism and Cultures to investigate this matter and take the necessary actions against the officers, who were involved in this deal, and if necessary to surcharge them for any damage suffered by TM as provided for under the General Orders.  As high the ranking officers, they had knowingly violated the Procurement Rules and other rules.  It goes without saying that this deal must be terminated as it was sealed not above board and more so our country cannot afford this luxury at this time.

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