Yesterday, the Malaysian Anti-Corruption Commission (MACC) raided the office of YTL Communications in Kuala Lumpur as part of its investigation into the now-defunct 1BestariNet project. The network operator, which runs Yes 5G, was awarded the project back in 2011 by then education minister Muhyiddin Yassin.
According to a report by FMT, an MACC source confirmed that alongside YTL’s office, the MACC also raided a government office, with several documents seized and witness being identified to be summoned to assist the probe. “The investigation is focussed on the submission of claims with false details, involving the payment of about RM2.7 billion, said the source, as well as investigations into “other crimes” in the project under the MACC Act 2009.
Its parent company, YTL Power International, defended its subsidiary by stating that the project has ended on 30 June 2019 and was certified by the education ministry as having been successfully completed. The firm’s statement read, “The 1BestariNet project was awarded to YTL Communications in 2011 by the education ministry, pursuant to 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 did not confirm whether its subsidiary’s office was raided but added that YTL Communications would fully cooperate with the investigation. Amidst the probe, the parent company’s share price was down over 7% at open today.
1BestariNet was meant to provide internet connectivity and a single learning platform for teachers, students, and parents, with the first phase commencing in December 2011 at a cost of RM1.1 billion and a two-year “interim Phase 1” from June 2014 at another RM468 million. Its phase 2 ran from July 2016 to June 2019 under a RM1.55 billion contract.
Under the following administration, then education minister Maszlee Malik decided in 2019 not to extend the contract with YTL Communications. A couple of years later, Maszlee, who claimed that he was pushed to resign over the decision, said that he had decided to not extend the contract based on several in-depth studies conducted by independent and professional bodies with authority on the matter, including the auditor-general and the Public Accounts Committee.
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