MACC finds nothing suspicious about how Ericsson won 5G contract
PARLIAMENT | The 5G contract awarded to Swedish telecommunications giant Ericsson was done through proper procedure, the MACC found.
This is according to a written reply to Lembah Pantai MP Fahmi Fadzil, who asked the government to review the contract and for the MACC to conduct an investigation on the award.
"The MACC has found that...
PARLIAMENT | The 5G contract awarded to Swedish telecommunications giant Ericsson was done through proper procedure, the MACC found.
This is according to a written reply to Lembah Pantai MP Fahmi Fadzil, who asked the government to review the contract and for the MACC to conduct an investigation on the award.
"The MACC has found that the 5G contract to Ericsson followed proper procedures and to date, there is no reasonable suspicion over how the contract was awarded," the Prime Minister's Department said in the reply.
Fahmi had raised the matter while debating the royal address earlier this month, following a media expose on Ericsson's dealings in other countries.
Among others, the expose by the International Consortium for Investigative Journalists (ICIJ) detailed how Ericsson had used corrupt ways to win contracts in various countries, including Iraq.
Based on a leak of internal compliance documents, the ICIJ reported how Ericsson had also put workers' lives at risk and made millions of US dollars in suspicious payments to local actors.
This includes paying for trips for key ministers and their family members or paying protection money to smuggle equipment through ISIS-held zones.
Winning on merit
In response, Ericsson said it was working with employees and external counsel to review the misconducts raised in the ICIJ reports.
"Despite the statement from Ericsson, the company has not addressed specific questions put to it by our journalists in relation to a wide range of corrupt behaviour in connection to its business in Iraq and elsewhere," the ICIJ said in a statement.
Earlier, Ericsson had also asserted that it won the 5G contract on merit.
Digital Nasional Berhad (DNB), the government firm which awarded the contract, said the award was based on strict standards of governance and was facilitated by EY Consulting.
The contract was awarded in July 2021.
Earlier this month, the government said it would proceed with rolling out 5G on a Single Wholesale Network model, excluding private telcos from developing another network to compete with DNB.
However, the government would offer a 70 percent stake to private telcos committed to signing a wholesale access agreement.
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