It was reported recently that the Malaysian Anti-Corruption Commission (MACC) is investigating the award of a lucrative contract to the son-in-law of a former prime minister centred on possible abuse of power in connection with the National Integrated Immigration System (NIISe) at how the contract was given and the company’s links to those who were in power at the time. (FMT)
New evidence related to the case apparently has surfaced, including that the project was now classified as a “sick project” as very little progress has been made.
The investigation centred on the links to those in power and those in power apparently also was involved in the award of the 1BestariNet project when he was formerly the Minister in charge of Education. (FMT)
The 1BestariNet project already was a political hot-button issue in the run up to the 13th General elections in 2013.
The project which will cost the Malaysian taxpayer at least RM1.5 billion and would take 13 years, aims to propel all the nation’s 10,000 schools into the digital age with laptops for every child and Internet connectivity for every school, thus creating a virtual learning environment and in the process, transforming teachers and the education system as a whole.
The project was mooted at one of the many labs or brainstorming sessions organized by the Performance Management & Delivery Unit (Pemandu) of the Prime Minister's Department as part of the Malaysian Government’s Economic Transformation Programme (ETP). (DNA)
In 2011, a tender for the project, which was a part of the government’s Economic Transformation Program (ETP) was announced with 19 companies making bids.
By August 2011, 6 companies were shortlisted namely Celcom Axiata, Jaring Communications, Maxis, Multimedia Synergy Corp, Telekom Malaysia/Time dotCom Bhd (which submitted a joint bid) and YTL Communications. (DNA)
In October 2011, the Ministry of Education apparently posted a notice on its website that the project had been awarded to YTL, which operates the YES 4G wireless network.
The notice, however, was taken down 2 hours after it was available for viewing by the public.
This was followed by a period of silence until May 2012 when YTL Communications officially announced that it had been awarded the project and would be rolling out the first phase. (DNA)
The murmurs of discontent even resulted in Anwar Ibrahim, the then Opposition leader promising to cancel the project, describing it as a crony deal, if his Pakatan Rakyat alliance were to form Malaysia’s next government.
When Pakatan Harapan became the government after the General elections in 2018, Maszlee Malik the then Education Minister, only to be sacked later by Mahathir, decided not to renew and continue with the 1Bestarinet project.
In his memoirs, titled “Memori Bukan Memoir”, Maszlee said he was called to meet Mahathir five times over the decision not to extend YTL’s contract for the 1BestariNet project.
Mazlee added that he was told by Mahathir of how Muhyiddin was “very angry” with him over the issue and Muhyiddin had pushed for Mazlee’s resignation over the issue.
Even though YTL told their side of the story in a statement on 3 July 2019, it was clear that Maszlee’s revelations suggested that there were vested interests in the award of that project. (TEM)
Similarly, the Cowgate scandal was initiated when Muhyyidin was the Minister of Agriculture.
There is still much explaining to do about the Cowgate scandal and the unpaid RM248m loan from public funds.
Rafizi Ramli who was found guilty by the Sessions Court that was overturned by the High Court later, exposed the company for purchases of luxury properties from using RM250 million government loan intended for a national beef valley in Negeri Sembilan.
The government had in June 2019 sued NFC to recover the entire outstanding sum and the matter is now in the courts.
Apparently, the government is seeking a declaration to hold the family of the executive chairman Mohamad Salleh Ismail personally liable for repayment of a debt of RM118.04 million allegedly misappropriated from the loan.
Salleh was charged with 2 counts of criminal breach of trust and 2 of misuse of company funds. But the charges were withdrawn several months after a change of attorney general in 2015 in the wake of 1MDB media revelations.
A PricewaterhouseCoopers audit report in 2012 found that RM108m out of a RM250m government soft loan was allegedly transferred from NFC to three companies personally owned by Salleh and his children. These companies later bought land in Putrajaya and luxury properties. They also allegedly made “questionable” payments, including for personal shopping and rental payment for a flat in London.
NFC and others claimed that they had sent a letter to the Attorney-General’s Chambers seeking a “global settlement” at present.
NFC still owes the government more than RM248m that they never paid back to the Malaysian people.
The Cowgate scandal was so unethical that today it is used in international business schools literally as a textbook case study on poor ethical corporate leadership.
Justice should not be denied both in the 1Bestarinet project and those responsible for the unpaid NFC loan and fresh investigations should be undertaken and if solid evidence is unearthed, actions should then be taken against the relevant parties and individuals.
Both projects suck out tax payers monies for the benefit of an elite few.
Anwar’s promise of rule of law must prevail.
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