KUALA LUMPUR (Sept 26): Shares of YTL Corp Bhd (KL:YTL) and its related stocks slipped on Thursday amid news reports that anti-graft authorities are investigating quality and services provided to schools under the 1BestariNet project.
Investigations showed there were issues of data connectivity not supplied to schools through the project, MACC Chief Commissioner Tan Sri Azam Baki was cited as saying by the New Straits Times. The commission is investigating all the concerns raised by various parties, he reportedly said.
“As such, we need to examine this as it constitutes an offence if there is a request but no supply,” Azam was quoted as saying. “My officers are currently looking into this issue.”
YTL fell 3.4% to RM2.57 while YTL Power International Bhd (KL:YTLPOWR) was down 1.5% to RM3.83 on Bursa Malaysia.
The comment follows a statement earlier this month by the Malaysian Anti-Corruption Agency (MACC) that the agency has initiated a probe on YTL Communications Sdn Bhd based on complaints of alleged graft, embezzlement and power abuse over the 1BestariNet project.
YTL Power owns 60% in YTL Communications that runs the Yes mobile network in Malaysia. 1BestariNet was supposed to be a 15-year service contract to provide internet connectivity and virtual learning environment to 10,000 schools nationwide.
YTL Communications, however, only undertook the first two phases of the 15-year project that ended at the end of June 2019.
"However, the [investigation] process will take some time as we need to visit many locations,” Azam told reporters at the sidelines of a conference on Thursday. “This case involves 8,000 schools [nationwide].”
The investigation is still ongoing and "it wouldn't be fair to the parties involved if I were to say there were signs of wrongdoing at this early stage,” he added.
The investigation 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, the MACC said on Sept 6.
The two reports reveal “several weaknesses, such as low broadband coverage, weak infrastructure technology, school locations in addition to broadband access that is not comprehensive," the commission said then.