YTL Power mulls action over 1Bestarinet ‘accusations by irresponsible parties’, says ‘committed to transparency’ in MACC probe

KUALA LUMPUR (Oct 30): YTL Power International Bhd (KL:YTLPOWR) is “seeking legal advice regarding potential steps” against unnamed parties that it said are spreading accusations of misconduct by the company in the 1Bestarinet project currently under investigations.

In a statement, YTL Power said its 60%-owned YTL Communications Sdn Bhd, which was involved in the project, will continue to provide full cooperation to the Malaysian Anti-Corruption Commission (MACC) on the investigations.

“We would like to clarify that we have diligently carried out our contractual obligations to the Government of Malaysia since the project’s inception,” it said, referring to the contract won by the group in November 2011 to provide internet access and virtual learning system in up to 10,000 schools.

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“To the best of our knowledge, we have not breached any contractual terms, nor violated any laws,” it added.

YTL Communications remains “committed to transparency” throughout the process, it said, adding that it is “confident that the matter will be satisfactorily resolved soon”.

“It is important to note that YTL Communications was awarded the 1Bestarinet project through an open tender process, reflecting our capabilities and merits,” it said.

The company said despite its commitment to the cooperation with the authorities, it has experienced considerable negative public perception arising from the accusations of misconduct on its part by irresponsible parties.

“This situation is unjust, particularly as it hampers our ability to defend ourselves against the prevailing narrative. To protect our reputation and legal standing, we are currently seeking legal advice regarding potential steps against those spreading these malicious accusations,” the statement read.

The statement did not name the parties allegedly spreading the accusations.

On Sept 4, YTL Power confirmed that the MACC “requested information from YTL Communications in respect of the 1Bestarinet project”, which the company previously said it had invested RM4 billion for.

Two days later, Maszlee Malik, who was education minister from 2018 to 2020, was quoted by the media as saying that the 1BestariNet issue was one of the factors that led to his resignation in January 2020.

The investigation focuses on payment claims related to the 15-year project, which was awarded by the Ministry of Education (MOE), Bernama reported.

MACC chief commissioner Tan Sri Azam Baki also reportedly said that the investigation focused on whether the data supply for 8,000 schools nationwide adhered to the contract specifications, as well as confirmed that the commission had met with Maszlee to gather information on the matter.

In the statement, YTL Power also said that the project was won by YTL Communications against 18 other bidders, with Phase 1 and Phase 2 executed between 2012 and June 2019.

However, Phase 3 of the project was not continued, and Telekom Malaysia Bhd (KL:TM), Celcom Axiata Bhd and Maxis Bhd (KL:MAXIS) were appointed as providers of interim internet services to the schools in the second half of 2019. The schools also switched to Google Classroom, to replace YTL Communications’ virtual platform Frog VLE, the MOE said at the time.

Shares of YTL Power have retreated 25% since news of the investigation was confirmed on Sept 4. The shares last traded two sen or 0.64% lower at RM3.11 at market close on Wednesday, giving the group a market capitalisation of RM25.71 billion. The counter is still up 22% this year.