CEO Morning Brief

No Legal Action Over 1BestariNet Amid Ongoing Talks With YTL, Says Deputy Minister

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Publish date: Tue, 12 Nov 2024, 09:17 AM
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TheEdge CEO Morning Brief

KUALA LUMPUR (Nov 11): The government has not taken legal action so far over the controversial multi-billion ringgit 1BestariNet Internet and online learning project, said Deputy Education Minister Wong Kah Woh.

There were still unresolved issues related to site rental rates and electricity charges for the 2,748 1BestariNet Receiver Integrated System towers installed in schools nationwide, after the 1BestariNet Phase 2 agreement ended on June 30, 2019.

Negotiations with the project operator YTL Communications Sdn Bhd — a 60%-owned subsidiary of YTL Power International Bhd (KL:YTLPOWR)— are still ongoing, Wong told the Dewan Rakyat on Monday, during the oral question-and-answer session.

“A proposal to resolve the rental and electricity charge issues was presented by the Ministry of Education (MOE) to the Cabinet in March 2023,” Wong said. The ministry “is currently finalising the proposal to determine the solution’s direction,” he noted.

The 1BestariNet project, initiated by the MOE in 2011, aims to provide high-speed internet access to schools and implement a virtual learning system. The project was initially awarded for a planned 15-year period, with a budget of RM4.07 billion, before being shortened to seven years and six months.

YTL Communications, however, only undertook the first two phases of the 15-year project, which ended in end-June 2019. In September, the Malaysian Anti-Corruption Commission (MACC) announced that it had initiated an investigation into YTL Communications on the project.

The anti-graft agency stated that it had received “new information” from the Government Procurement and Finance Governance Investigation Committee in August, along with a report from the Public Accounts Committee.

YTL Power, in a statement assured that it would fully cooperate with the MACC on the investigations.

Source: TheEdge - 12 Nov 2024

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