Govt to review 5G rollout, cites lack of tender

Prime Minister Anwar Ibrahim today said he has instructed for a review of the RM11 billion 5G network contract awarded by Digital Nasional Berhad (DNB) - an agency under the Finance Ministry - to Swedish telecommunications giant Ericsson under the previous administration.

Speaking during a post-cabinet meeting press conference in Putrajaya, Anwar said there were issues identified in how the contract was awarded.

"I have instructed for this to be reviewed, it was not done in a transparent manner. There was no proper tender process.

"We need to review to make sure we follow strict financial procedure, to ensure things are done properly," said Anwar who is also finance minister.

Digital Communications Minister Fahmi Fadzil, who earlier held a press conference at his own ministry, said he has yet to be briefed on the latest update but looks forward to meeting representatives from DNB.

"I look forward to meeting with representatives from DNB to understand the current situation.

"I want to hear directly from DNB," Fahmi said when asked on his current stand after having previously called for the Public Accounts Committee to review the project, citing alleged discrepancies in the terms of the contract.

Fahmi also clarified that the Malaysian Communications and Multimedia Council (MCMC), under his purview, is only in charge of the spectrum distribution.

"With regards to the issue of spectrum distribution, whatever my personal sentiments before, the situation now is I'm the minister in charge, so it’s something that I will have to refer to the cabinet and seek instructions," he said.

Responding to initial concerns raised in Parliament, Ericsson had in March said it adhered to all standard procedures to secure the deal by merit through an open tender.

The Swedish multinational telecommunications giant also said it was committed to ensuring that the DNB network becomes a showcase of the best that 5G can deliver in the region.

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