By Zairil Khir Johari
Perhaps one of the more controversial parts of the multi-billion-ringgit 1BestariNet project is the installation of the 1BestariNet Receiver Integrated System (1BRIS) telecommunication towers. According to the 2013 Auditor-General’s Report, the contractor, YTL Communications, was to build these structures at 3,203 schools.
These towers have attracted much controversy because they provide wireless Internet services not only to the schools but also to surrounding areas. This raised concerns that the towers would also be used for YTL’s YES 4G broadband services, thus constituting commercial network expansion at taxpayer’s expense. Although its commercial use was denied by ministry officials in the Public Accounts Committee (PAC) inquests, YTL themselves have admitted that its use is not confined to school premises.
A bureaucratic fiasco
Another more pertinent concern regarding the 1BRIS towers was highlighted by the PAC report on 1BestariNet. According to audit findings, the Ministry of Education (MoE) had in February 2012 agreed to allow YTL to install 1BRIS structures in schools throughout Malaysia subject to terms and conditions, including rental charges to be determined by the Valuation and Property Services Department (JPPH). In January 2013, JPPH submitted a recommended rental rate of RM1,200 a month for each 1BRIS site. Following this, MOE submitted a claim for RM32.27 million, plus an additional RM8.8 million as deposit, being rental charges for 2,445 sites from May 1, 2012 to March 31, 2013.
YTL had initially refused to pay the amount, claiming that the contract did not stipulate a rental charge. As school land belongs to the federal government, the MoE sought the advice of the Department of Lands and Mines, which decided in February 2014 to charge a nominal fee of RM1,000 a year per site. Unfortunately, miscommunication resulted in the MoE charging YTL only RM1,000 a year for all 1BRIS sites. This bill, amounting to RM2,416.67 for rental from May 1, 2012 to June 30, 2014 plus three-months deposit, was duly paid up in full by YTL.
In July 2014, auditors sought clarification from the Federal Lands Commissioner, which stated that the rental rate was for each site and not for all sites as interpreted by the MoE. In August 2014, the MoE tried to reclaim the balance from YTL. However, YTL made an appeal to maintain the rental rate at RM1,000 a year for all 1BRIS sites. After considering this appeal, the Department of Lands and Mines made the incredible decision to reduce the rental charges to only RM120 a year per site.
Incompetence or deliberate?
The chronology above is almost unbelievable. JPPH’s initial recommendation of RM1,200 a month or RM14,400 a year per site would amount to RM46.12 million a year for all 3,203 sites. By reducing the rental rate to RM1,000 a year for each site, it would result in YTL only having to pay RM3.20 million a year, equating to a loss of revenue of RM42.92 million a year for the MoE. But if that’s not bad enough, the rental charge has now been reduced to RM120 a year per site, which is equivalent to only RM384,360 a year. The difference between this and JPPH’s initial recommendation is a whopping RM45.73 million, or more than 99 per cent.
Notwithstanding the contractual omissions and errors in interpretation, which are on their own unacceptable, the judgement exercised by the officials involved in negotiating the rental charge for the 1BRIS towers that could be used for commercial purposes is outrageously mind-boggling to say the least.
What justification could there be for a 99 per cent reduction in rental charges, from RM14,400 a year per site to RM1,000 and eventually to only RM120? The MoE must immediately explain.
Zairil Khir Johari is MP for Bukit Bendera and DAP Parliamentary Spokesperson for Education, Science and Technology.
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