KUALA LUMPUR (Sept 6): The Malaysian Anti-Corruption Commission confirmed on Friday that it has initiated a probe against YTL Communications Sdn Bhd, saying it was initiated based on complaints of alleged graft, embezzlement and power abuse that it had received.
The investigation against YTL Comms — a 60%-owned subsidiary of YTL Power International Bhd (KL:YTLPOWR) was also initiated based on information revealed by the governance, procurement and finance investigation committee's report that was received in August, and findings from the Public Accounts Committee, MACC said in a statement.
"The findings of these two reports reveal that there were several weaknesses, such as low broadband coverage, weak infrastructure technology, school locations in addition to broadband access that is not comprehensive," the commission said.
There have also been complaints about the project failing to provide broadband access with the speed required to help the learning process in schools be more efficient, MACC said.
In addition, MACC highlighted that the tender for 1BestariNet service was originally planned for 15 years involving a contract sum of RM4.07 billion, but was shortened to seven years and six months without any reduction in contract value.
And while the services provided did not achieve the objectives set, MACC said YTL Comms had made several claims against the Education Ministry that require a more thorough investigation to confirm.
MACC said the investigation has so far found that the government has to bear claims worth RM176 million from YTL Comms but the claim information has yet to be confirmed by the government, other than telecommunication substation rental losses for a period of five years from 2019 that is estimated at RM10.8 million.
"Therefore, there should be no issue as to why the investigation was opened after the 1BestariNet project was terminated in 2019 because it is the MACC's responsibility to carry out investigations in a professional manner when new information is obtained, especially involving the allocation of government funds for national development," it added.
Bernama on Wednesday reported that the MACC conducted raids at government offices and YTL Comms' office to investigate payment claims related to the 1BestariNet project, citing sources. MACC's investigation is centred on claims involving false details related to RM2.7 billion in payments, as well as other criminal elements under the MACC Act 2009, the news agency wrote.
Later that same day, YTL Power confirmed that YTL Comms had been "questioned" by the MACC, saying the subsidiary would be providing full cooperation to the commission on the matter.
According to YTL Power, the project was certified by the Ministry of Education as having been successfully completed at the end of its contract period on June 30, 2019.
The 1BestariNet project entailed a 15-year service contract to provide internet connectivity to 10,000 schools nationwide in phases. The scope of work included providing a total learning solution comprising internet connectivity, security and virtual learning environment.
YTL Comms, which was appointed in 2011, only undertook the first two phases of the 15-year project, which ended in end-June 2019.