KUALA LUMPUR (Dec 18): YTL Power International Bhd (KL:YTLPOWR) said the Malaysian Anti-Corruption Commission (MACC) has cleared the group's 60% owned subsidiary, YTL Communications Sdn Bhd, of any wrongdoing in connection with the 1BestariNet project.
In a bourse filing on Wednesday, YTL Power said it was informed of this by MACC after concluding an investigation into the multi-billion ringgit project undertaken by YTL Communications.
“We wish to announce that we have received confirmation from MACC that it has concluded its investigation and determined that no charges will be pursued against YTL Communications,” said YTL Power.
On Sept 4, Bernama, citing a source, reported that MACC had launched an investigation into payment claims related to the 1BestariNet service tender, and that the graftbuster raided several government offices as well as the office of YTL Communications.
According to the report, the investigation was centred on claims involving false details related to RM2.7 billion in payments, as well as other criminal elements under the MACC Act 2009.
YTL Power had previously said that the 1BestariNet project was awarded to YTL Communications in 2011 by the Ministry of Education following an open tender involving 19 companies that tendered bids for the project. YTL Communications was selected for being the most technically compliant and most cost-effective bid.
YTL Power also claimed that the project was certified by the ministry as being successfully completed at the end of the 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 Communications, however, only undertook the first two phases of the 15-year project, which concluded in end-June 2019.
The following month, YTL Communications claimed that the Ministry of Education had breached its contractual obligations after it appointed Telekom Malaysia Bhd (KL:TM), Celcom Axiata Bhd (now known as Axiata Group Bhd (KL:AXIATA)) and Maxis Bhd (KL:MAXIS) as providers of interim internet services for the remaining second half of 2019, when YTL Communications had offered to do so for free.
YTL Communications alleged that the ministry had requested the free internet services for 10,000 schools operating a virtual learning environment pending a tender in January 2020, but reneged on its statement to call for the tender when it appointed the three interim internet service providers and excluded YTL Communications.
The company insisted that it had a "legitimate expectation" to be granted an extension of the contract, after having allegedly invested over RM4 billion into schools for the project.
Shares of YTL Power closed unchanged at RM3.66 on Wednesday, giving the company a market capitalisation of RM30.26 billion. Year to date, the counter has gained 44%.
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