KUALA LUMPUR (Sept 4): YTL Power International Bhd (KL:YTLPOWR) has confirmed that its subsidiary YTL Communications Sdn Bhd (YTL Comms) has been questioned by the Malaysian Anti-Corruption Commission (MACC) about the Ministry of Education's 1BestariNet project, valued at RM4 billion.

"We wish to confirm that MACC has recently requested information from YTL Comms in respect of the 1BestariNet project," YTL Power said in a press statement on Wednesday.

"YTL Comms is providing full cooperation to the MACC on the matter, entrusting that the matter will be satisfactorily resolved," it added.

According to YTL Power, the project was awarded to YTL Comms in 2011 by the Ministry of Education following an open tender involving 19 companies that tendered bids for the project.

It said YTL Comms was selected for being the most "technically compliant and most cost-effective bid."

"The project was certified by the Ministry of Education as being successfully completed at the end of the contract period on June 30, 2019," YTL Power added.

Earlier on Wednesday, Bernama, citing a source, reported that MACC had launched an investigation into payment claims related to the 1BestariNet service tender, and that the graftbuster raided several government offices as well as the office of YTL Comms.

YTL Power, however, did not confirm or deny if YTL Comms was raided.

According to the news agency, MACC's investigation is centred on claims involving false details related to RM2.7 billion in payments, as well as other criminal elements under the MACC Act 2009.

The 1BestariNet project entailed a 15-year service contract to provide internet connectivity to 10,000 schools nationwide in phases. The scope of work included providing a total learning solution comprising internet connectivity, security and virtual learning environment.

YTL Comms, however, only undertook the first two phases of the 15-year project, which ended in end-June 2019.

The following month, YTL Comms claimed that the Ministry of Education had breached its contractual obligations after it appointed Telekom Malaysia Bhd (KL:TM), Celcom Axiata Bhd (now known as Axiata Group Bhd) and Maxis Bhd (KL:MAXIS) as providers of interim internet services for the remaining second half of 2019, when YTL Comms had offered to do so for free.

YTL Comms alleged that the ministry had requested for the free internet services for 10,000 schools operating a virtual learning environment pending a tender in January 2020, but reneged on its statement to call for the tender when it appointed the three interim internet service providers and excluded YTL Comms.

YTL Comms also said it had a "legitimate expectation" to be granted an extension of the contract, as it claimed it had invested over RM4 billion into schools for the project.

Shares of YTL Power dropped six sen or 1.52% to close at RM3.89 on Wednesday, giving the company a market capitalisation of RM32.14 billion. Year to date, the counter has gained over 50%.