MACC: Probe into YTL Communications’ RM4.07b 1BestariNet project launched after govt reported failures

KUALA LUMPUR, Sept 6 — The Malaysian Anti-Corruption Commission (MACC) today said that its investigation into YTL Communications Sdn Bhd on the RM4.07 billion 1BestariNet project is being carried out in accordance with the MACC Act 2009 and based on new information received from the Government Procurement and Finance Governance Investigation Committee (JKSTUPKK) in August, alongside a report from the Public Accounts Committee (PAC).

According to these reports, several shortcomings were identified in the 1BestariNet project, including inadequate broadband coverage, technological infrastructure failures, and poor internet access in schools, which hindered the effectiveness of the service.

In a statement, it said the investigation stemmed from complaints alleging corruption, mismanagement, and abuse of power related to the project, which was awarded by the Ministry of Education.

Public complaints and information from specific parties also revealed that the project did not deliver the broadband speeds required to facilitate efficient learning in schools.

Initially planned for a 15-year period with a budget of RM4.07 billion, the project was later shortened to seven years and six months, though the contract value remained unchanged.

Despite the project failing to meet its objectives, YTL is reported to have made claims to the Ministry of Education, necessitating further investigation.

So far, MACC’s findings suggest that the government may have to bear RM176 million in claims, though these are yet to be verified.

Additionally, the government faces an estimated loss of RM10.8 million for telecommunications tower rentals over the last five years, following the project’s termination in 2019.

MACC highlighted that the decision to investigate was triggered by new information, reinforcing that it is their responsibility to investigate when there are allegations of misuse of public funds, even if the project ended in 2019.

It added that the investigation is being conducted with full transparency, fairness, and professionalism, and stressed that no external parties are interfering in the investigation.