KUALA LUMPUR – The Education Ministry awarded a million-ringgit contract to a company with weak fundamentals to produce educational TV content for schoolchildren.
Privately held Radius One Sdn Bhd (RO) bagged a RM1.92 million tender to produce an 800-episode series, Kelas@Rumah, for pupils affected by the Covid-19 lockdown, despite having a negative net worth over the past three financial years, with company filings showing total liabilities greater than total assets.
RO's total liabilities for the financial years 2017 to 2019 were RM3.23 million, RM4.14 million and RM5.04 million against total assets of RM2.55 million, RM3.47 million and RM4.39 million for the same period under review, according to its filings with the Companies Commission of Malaysia.
The company posted a net loss of RM392,645 for FY17 and net profits of RM15,549 and RM20,053 for FY18-19 on the back of RM3.01 million, RM4.52 million and RM4.71 million in revenue.
Retained earnings remained in the negative, registering -RM1.67 million, -RM1.66 million and -RM1.64 million for FY17-19.
Also, it had a cash and cash equivalent of RM1.55 million as of FY19, which is insufficient to clear current debt of RM4.92 million or even foot the entire cost of the project.
RO's directors are Fazli Baharom and Shahrul Ezad Mohameddin. Both are also equal shareholders of the company.
Education Minister Mohd Radzi Md Jidin yesterday defended RO's performance, which came under the scrutiny of his predecessor, Maszlee Malik.
Maszlee, who is Simpang Renggam MP, had in the Dewan Rakyat questioned RO's ability to deliver on content after the company was given an extension to complete the project, asking why it only completed 25 out of the 800 episodes.
“What guarantee can be given that the more than 700 episodes will be completed even when extended?” Maszlee said, interrupting Radzi's closing session of the ministerial debate for Budget 2021.
Maszlee went on to argue that RM2,500 per 25-minute episode was below the market rate of RM25,000 per show.
“So which company dates to enter?” he said, adding that the project had either failed or was delayed due to its low pricing.
Due to a lack of emphasis given in assuring quality and delivery of content, Maszlee said the government was mortgaging “the future of our children”.
Radzi, however, assured that RO had been selected through open tender, despite the novelty of the project and delays due to coronavirus-induced travel restrictions in March.
The expiry date of the project was then extended from November 30 to March 31 next year, he added.
“While 25 episodes have been aired, more than 60 are ready to be shown.”
The episodes are broadcasted on TV Okey, a free-to-air education TV channel operated by Radio Televisyen Malaysia that was launched by Radzi's ministry and the Communications and Multimedia Ministry.
The channel, launched on March 21, 2018, is supposed to be an alternative platform for students with unstable or no internet connection to learn at home. It began broadcasting on April 6 for two hours daily, from 9am to 10am, and 1pm to 2pm. – The Vibes, November 25, 2020
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