KUALA LUMPUR – The Malaysian Anti-Corruption Commission (MACC) has reaffirmed that its investigation into YTL Communications Sdn Bhd regarding the RM4.07 billion 1BestariNet project tender is being conducted “transparently, fairly, and professionally” with “no interference from any external parties.”
In a statement, the MACC clarified that the investigation follows complaints about “several allegations of corruption, mismanagement, and abuse of power,” which breach provisions of the MACC Act 2009.
“The findings from these two reports revealed several weaknesses, including low broadband coverage, infrastructure technology deficiencies, school locations, and incomplete broadband access,” it said.
“There is also public information and complaints from certain parties regarding the project’s failure to provide broadband coverage at the required speed, which would have improved the efficiency of the learning process in schools.”
The probe was triggered after the agency received reports from the Special Investigation Committee on Public Governance, Procurement, and Finance and the Public Accounts Committee (PAC).
The 1BestariNet project was initially planned for 15 years, costing RM4.07 billion, but was reduced to “seven years and six months without any reduction in the contract value.”
Although the project did not meet its intended targets, it was noted that “there are still several claims” being made by YTL Communications to the relevant ministry, which warrants a more detailed investigation, the MACC said.
As of now, the government is facing a potential liability of RM176 million in claims from YTL Communications, but these claims “have yet to be verified” by the authorities. In addition, there are losses estimated at RM10.8 million related to telecommunications tower rentals over the past five years, since 2019.
The MACC stressed that its duty is to investigate any new information that emerges regarding the use of public funds, insisting that “it is the responsibility of MACC to carry out professional investigations whenever new information is received, particularly when it involves government funds.”
Earlier today, YTL Power International Bhd, the parent company of YTL Communications, stated that it is fully cooperating with the MACC. The company emphasised that YTL Communications was awarded the 1BestariNet contract through a competitive open tender process and that the project was “successfully completed by the end of the contract period in June 2019,” according to certification from the Education Ministry.
However, YTL Power did not confirm reports of a MACC raid on YTL Communications’ office, only acknowledging that the anti-corruption agency had “recently requested information” regarding the 1BestariNet project. Sources have indicated that several documents were seized, and witnesses are expected to be called in to assist with the investigation.
MACC’s investigation division senior director Datuk Seri Hishamuddin Hashim confirmed that the case is being investigated under Section 18 of the MACC Act, which deals with offences involving deception by agents.
The 1BestariNet project, launched in 2011 by former Prime Minister Tan Sri Muhyiddin Yassin during his tenure as education minister, aimed to provide internet connectivity and a digital learning platform for schools.
However, amid widespread criticism of poor service, the Pakatan Harapan government, under then education minister Maszlee Malik, chose not to renew YTL Communications’ contract in 2019 after independent studies by bodies such as the auditor-general and the PAC. – September 6, 2024