YTL Power International Bhd’s share price dropped by 7.0% in early trading following confirmation of an investigation by the Malaysian Anti-Corruption Commission (MACC) into its subsidiary, YTL Communications, concerning the 1BestariNet Project.
The stock fell 7.2% to RM3.61 (its lowest point) down from RM3.89 at Wednesday’s close. As of today 1.57pm, its share price stood at RM3.71.
The 1BestariNet project, awarded to YTL Communications by the Education Ministry in 2011, was a 15-year initiative aimed at providing internet connectivity and virtual learning environments to 10,000 schools across Malaysia.
However, YTL Communications only completed the first two phases of the project, ending in June 2019.
Subsequently, YTL Communications alleged that the Ministry of Education had breached its contract by appointing Telekom Malaysia Bhd, Celcom Axiata Bhd (now Axiata Group Bhd), and Maxis Bhd as interim internet service providers for the latter half of 2019.
YTL Communications had offered to provide these services for free but claimed the ministry failed to follow through with a promised tender process.
The company also argued that it had a “legitimate expectation” for a contract extension, citing an investment of over RM4 billion into the project. – Sept 5, 2024
Main image: freemalaysiatoday
