The Tourism Ministry is investigating the purchase of 1,000 units of metal pamphlet racks for Visit Malaysia Year 2007 which, according to the Auditor-General's Report 2010, were valued at RM1.95 million.

In a statement yesterday, ministry secretary-general Dr Ong Hong Peng said an investigation committee was established on Oct 5, and that a full investigation report would be submitted to him on Nov 18.  

However, he clarified that the Finance Ministry had approved payment of RM1.7 million for the purchase of 873 units of racks which were delivered.

Recently, the report stated that the purchase of 1,000 units of pamphlet racks was made through direct negotiation without approval from the Finance Ministry.

It also said the Auditor-General's Office could not confirm whether the pamphlet racks were completely distributed with tourism pamphlets.  

Touching on the ministry's 2009 and 2010 advertising activities , Ong clarified the direct booking of advertisement slots had helped save the commission paid to the agency (15 percent of the media purchase cost) totalling RM19.93 million in 2009, and RM9.2 million last year, as compared to using the service of advertising agency appointed through open tender.

"The move also helped the Tourism Promotion Board to plan its expenditure plan for 2009 and 2010, for better financial management and reduced its accumulated deficit," he said.

- Bernama