Thesun 2009-10-21 Page01 List Of Failed Ventures

œ Member of Audit Bureau of Circulations (Malaysia)

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No. 4869 PP 2644/12/2009 (023092)

Wednesday October 21, 2009

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Sports

List of failed ventures by Tim Leonard [email protected]

ETALING JAYA: Pempena Sdn Bhd, the controversy-stricken subsidiary of Tourism Malaysia, has filed nine reports with the Malaysian Anti-Corruption Commission on irregularities in investments and ventures that it had undertaken with various companies. Similar reports were also filed with the Police Commercial Crimes Division, and in some cases with the Companies Commission of Malaysia. All investigations by the police and MACC are ongoing.

This was revealed in the AuditorGeneral’s 2008 Report released on Monday, which carried responses from Pempena to audit findings on irregularities that had been uncovered. The MACC and police reports were lodged last year and this year. The questionable ventures were those which Pempena carried out with Sky Vans Sdn Bhd (SVSB), Dalamasa Sdn Bhd, Malaysian Restaurant Limited London-Awana Chelsea, Malaysian Restaurant Beijing

Limited-Awana Beijing, Malaysian Restaurant Hyderabad LimitedAwana Hyderabad, Awana Dubai, D’Malaysia Restaurant (Australia) Pty Limited, Sri Kebaya Restaurant (M) Sdn Bhd in Doha, Qatar and Airnett Catering Services Sdn Bhd. The audit findings were: » SVSB, which lost RM1.04 million in the financial year ending Dec 31, 2007, now operates a fleet of 10 vans, instead of the proposed 20. Pempena is making efforts to recover its RM1.8

AFPPIX

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AUDITOR-GENERAL ZOOMS IN ON PEMPENA’S BUSINESS DEALS

True blue ...

Apart from the traditional red and white, there are now blue roses, thanks to genetic engineering. The unique blooms are the result of 13 years of research by an Australian company and Japanese beverage giant Suntory. The pigment was cloned from the petunia and inserted into an Old Garden Cardinal de Richelieu rose, according to wikipedia. Suntory is offering the blue roses for sale from next month.

million upfront payment made to SVSB, which it admits will be difficult because the payment was made without an agreement. » Pempena’s investment in Dalamasa to run Pempena Executive Taxi Service Sdn Bhd (PETS) has caused it to lose RM13.36 million. On top of that, Kah Bintang Sdn Bhd is claiming RM17.84 million from Pempena. Pempena terminated its taxi management contract with Dalamasa on Nov 26, last year. Dalamasa, which was seeking RM1.5 million in compensation from PETS for liabilities and loss of income, has since returned six Mercedes Benz to PETS but reported one missing. » Pempena did not carry out independent audit assessment before investing in Malaysian Restaurant Limited London-Awana Chelsea, a restaurant promoting Malaysian cuisine in Britain. It has not received any returns on its RM3.73 million invested in the restaurant venture. » On the Malaysian Restaurant Beijing Limited-Awana Beijing deal, the share registration of the restaurant under the entity of Little Penang Beijing Limited was not done rightfully. No agreement was signed between Pempena and Low Chin Meng to protect Pempena’s interest in the

venture. Low is an entrepreneurcum-restaurateur who joined Tourism Malaysia to promote Malaysian cuisine abroad via the swanky Awana Chelsea Restaurant as well as others in India and China. » On the Malaysian Restaurant Hyderabad Limited-Awana Hyderabad deal, the 45% shareholding value in Little Penang Hyderabad Limited valued at RM1.6 million was not fairly priced. » On Awana Dubai, the A-G said Pempena should have claimed back the RM888,000 advance fee from LCL Interiors, as the sum given by Low to Awana Beijing and Hyderabad did not get Pempena board approval and could not be verified. » Pempena’s investment in D’Malaysia Restaurant in Australia was done without due diligence. It did not sign any agreement with the company before giving an advance of RM52,525. The restaurant is lossmaking. » On the Sri Kebaya Restaurant venture in Doha, Pempena has yet to recollect its advance payment of RM570,271 from proprietor Sunyta Ali and the restaurant has lost RM316,785 in the first seven months of operation. » On Airnett Catering Services Sdn Bhd, checks showed that a RM500,000 advance did not comply with the Companies Act. The payment was made without board approval.

2008 AUDITOR-GENERAL’S REPORT » Two full tanks of petrol a minute apart » Selangor must gazette raw water sources » Guan Eng invites A-G to visit Penang » On Pages 6&7