KUALA LUMPUR (Dec 19): The Malaysian Anti-Corruption Commission (MACC) has announced that no charges will be filed against any parties involved in the 1BestariNet project tender under the Ministry of Education (MOE).

The decision was made following instructions from the deputy public prosecutor (DPP), who concluded that there was no evidence of criminal wrongdoing in the tender process, MACC said in a statement on Thursday.

MACC initiated an investigation into the issue in September. The probe, led by the commission’s governance investigation division, scrutinised governance aspects and financial claims within the contract between YTL Communications Sdn Bhd and the MOE.

MACC's announcement confirms YTL Power International Bhd's (KL:YTLPOWR) statement on Wednesday that MACC had cleared its 60%-owned subsidiary YTL Communications of any wrongdoing in connection with the 1BestariNet project.

Shares of YTL Corporation Bhd (KL:YTL) and YTL Power soared in early trades on Thursday. In the first 15 minutes of trading, YTL gained nearly 9% or 19 sen to RM2.33, while YTL Power rose nearly 8% or 28 sen to RM3.94.

At 3.18pm, YTL shares were up further by 26 sen, or 12.15% at RM2.40, while YTL Power extended its gains by 29 sen, or 7.92% at RM3.95. Both counters were among the top 10 active stocks on Bursa Malaysia at the time of writing on Thursday. 

In its Thursday statement, MACC said it was directed by the DPP to submit a comprehensive report after its investigation to the MOE, including recommendations for improvements.

A key recommendation it made was the reopening of negotiations between the MOE and YTL Communications to address and resolve any outstanding issues related to the agreed-upon tender contract.

The 1BestariNet project, a large-scale initiative to provide internet connectivity to schools nationwide, was awarded to YTL Communications in 2011, after an open tender for a 15-year service contract to be implemented 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. YTL Power claimed that the project was certified by the ministry as with the two phases successfully completed at the end of the contract period on June 30, 2019.

In July 2019, YTL Communications claimed that the MOE had breached its contractual obligations after appointing Telekom Malaysia Bhd (KL:TM), Celcom Axiata Bhd, 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.

Under the ministry’s June 27, 2019 announcement, the three telecommunication companies were to replace YTL Communications for the period July 1 to Dec 31, 2019. 

On Sept 4, 2024, 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.