Education Minister Maszlee Malik confirmed today that Jepak Holdings Sdn Bhd was given a contract of "more than RM1 billion" without undergoing an open tender process.

The company was awarded the contract for three years – from Jan 1, 2017, until Dec 31, 2019 – to install a solar hybrid system, maintain generators and provide diesel to 369 schools in rural Sarawak.

Maszlee revealed that the project was supposed to be 51 percent complete as of May 15 this year, but the actual project completion was way below the reported figure.

He said this at a press conference held at the Higher Education Ministry in Putrajaya.

"In Sarawak, there are 369 schools without a proper supply of electricity, and they are reliant on diesel generators. Before 2017, diesel supply was provided by several contractors to these schools, on contract.

"However, from 2017 onwards, the contract was awarded to Jepak Holdings Sdn Bhd. They were initially one of the providers, but through this award of the contract, they were to supply to all the 369 schools," Maszlee said.

He also confirmed that the MACC has been investigating the case.

MACC has said that it had taken proactive action by conducting a preliminary investigation into the issue in early April 2018, prior to the 14th general election.

The award of this contract showed that the Sarawak-based company monopolised the service to supply diesel to the rural schools.

Maszlee also questioned the award of a project of such a huge cost through direct tender to a company to monopolise the supply of diesel to the schools.

"I got to know about the discrepancies of the project last week, before it went viral in the news. I immediately instructed my officers to investigate and provide a full briefing to me.

"There are several issues about the award of this contract and some possible serious issues of non-compliance with the procurement procedures for the project. Some officers from the ministry tried to correct the errors, but their advice went unheeded," the minister said.

Maszlee also instructed his officers to find a solution, and make sure it is done according to the agreement and the rule of law.

The ministry will make sure that the supply of electricity to the affected schools will not be interrupted, he said.

Yesterday, Malaysiakini reported that former prime minister Najib Abdul Razak allegedly instructed the Education Ministry to directly appoint Jepak Holdings Sdn Bhd to manage the solar hybrid project.

However, the company director Saidi Abang Samsudin denied claims of any wrongdoing, and also said that Jepak Holdings has not collected any money related to the solar project.