“We wish to announce that we have received confirmation from MACC that it has concluded its investigations and determined that no charges will be pursued against YTL Communications,” YTL Power International Bhd said in a bourse filing today.
On Sept 4, it was reported that MACC had raided YTL Communications’ office in Kuala Lumpur as well as a government office as part of its probe into the 1BestariNet project.
An MACC source was quoted as saying that 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.
On Sept 6, MACC said the investigation into YTL Communications was initiated following complaints of alleged corruption, misappropriation and abuse of power, after the timing of the probe was questioned.
MACC said it had decided to look into the project following a report by the governance, procurement and finance investigation committee, released in August, and the findings by the Public Accounts Committee.
It said these two reports highlighted several weaknesses, including low broadband coverage, inadequate infrastructures and poor broadband access in schools.
The anti-graft agency also said the project’s duration was reduced from 15 years to seven-and-a-half years without reducing the contract’s value, and that there were ongoing claims and potential losses that needed to be investigated further.
The controversial 1BestariNet project, initiated in 2011 by Muhyiddin Yassin who was the education minister then, had been awarded to YTL Communications.
Phase 1 of the mega project – to provide internet connectivity and a single learning platform for teachers, students and parents – began in December 2011 and went on until June 2014 under a RM1.1 billion contract.
In addition, an “interim Phase 1” project proceeded for two years from June 2014 under a RM468 million contract. It then continued to Phase 2 under a RM1.55 billion contract, from July 2016 to June 2019.
In 2019, then education minister Maszlee Malik decided not to extend the YTL Communications’ contract.