The Tourism Ministry has initiated investigations into alleged embezzlement of funds that is said to involve two of its officers based in South Korea.

Malaysiakini reported last Friday that Seoul office director Abdul Mutalib Awang and North Asian regional director Ramzi Abu Yazid were implicated as having siphoned RM850,000 slated for production of a video to promote Malaysia to South Koreans.

Star Online today quoted Tourism Minister Tengku Adnan Tengku Mansor as saying that an internal probe against the two began two weeks ago.

Sources had also alleged that the minister had done nothing about the two, despite being aware of their actions, and in fact had gone on a skiing trip with Mutalib’s family a few weeks ago.

Tengku Adnan, however, denied this and reportedly said he was not aware of the video production plan. He further denied having gone to South Korea with his family as alleged.

“I did not know about the video, in fact I was shocked when I was told the news. I do not even know how to ski and I did not go to Korea, except last year when I went for tourism promotional events," he was quoted as saying.

He further said his ministry would find out who had revealed the information to the press, saying it could be someone unhappy with recent promotions in the ministry - since one of those named had been promoted.

Documentary evidence

The sources had furnished documentary evidence that, some time early last year, Ramzi had suggested that the South Korean office should produce a video recording of tourist attractions in Malaysia to be used for promotional purposes.

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

Payment to was made via bank transfer after Mutalib gave approval. It was alleged that Ramzi and another Malaysian-based graphic designer would pick up the money and transfer it to a bank in Malaysia.

Sources alleged that Sekyung is 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.

The tourism ministry had queried discrepancies in documents related to the transaction as well as the “exorbitant” cost, in a letter dated Aug 5 last year.

However, sources said that no action has been taken against the duo and that Ramzi was even promoted.