The Communications and Multimedia Ministry has insisted that the government did not incur any losses even though Radio-Television Malaysia (RTM) entered into RM111.30 million in deals to procure television programmes without formal contracts .

 

Communications and Multimedia Ministry secretary-general Abdul Rahim Mohamad Radzi said the use of a letter of acceptance (SST) for the deals had already sufficiently spelled out the terms of the contract to protect the government's interest.

 

"Government losses do not arise because the services we procured did not involve any deposit and payment is only made after the programmes are ready," he told a briefing of top civil servants and the media in Kuala lumpur on Auditor-General's Report 2013.

 

Abdul Rahim ( left ) said if the programme producers failed to deliver their product in time, the SST also outlines a termination of the agreement.

 

The second series of the Auditor-General's Report 2013 which was tabled in Parliament yesterday had said the use of SST was insufficient as it did not outline clauses such as extension, suspension and change of contract.

 

Following the report, Abdul Rahim said his ministry will work to ensure RTM complies with treasury rules and a formal contract will be drafted for all existing agreements.

 

No answers for Astro-RTM deal

 

Abdul Rahim was also asked to respond to a deal in which RTM entered with Astro to have its channel TVi aired over the satellite network's platform in exchange for advertising Astro's products on RTM which was highlighted in the report.

 

However, on this, Abdul Rahim appeared unclear and rather strangely insisted that he could only speak on matters in the auditor-general's report.

 

"When I scrutinised the list of issues that came out in the second series of the Auditor-General's Report 2013, I did not seen any question related to this. I need to check, I can only confine to the report," he said.

 

Meanwhile, Kuala Lumpur City Council (DBKL) mayor Ahmad Phesal Talib (right)  responded to the the auditor-general's criticism of the council's failure to collect RM128.14 million in premise signboard fees and RM10.21 million in outdoor advertisement fees.

 

Ahmad said following the report, DBKL will now transfer the approval of outdoor advertisement to the town planning department instead of the licensing department to better track outdoor advertisement and collect the necessary fees.

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