Putrajaya Reiterates No Public Funds Involved In Dnb S 5g Plan


 


PARLIAMENT | The finance minister has reiterated that the implementation of the 5G network through state-owned entity Digital Nasional Bhd (DNB) will not involve public funds.
Tengku Zafrul Abdul Aziz in a written parliamentary reply said DNB will be "financed through a combination of deferred financing to vendors, trade financing and working capital, as well as a Sukuk programme to be issued in the capital market".
"It will not involve any guarantee or financing from the government, particularly indirectly, or off-balance sheets, as alleged by some quarters.
"DNB will obtain the financing through financial institutions, such as banks, and this will be repaid through proceeds sales generated from wholesale capacity sales," he added.
As of the end of January, Zafrul said that DNB had obtained a total of RM1.7 billion in commercial finance and RM544 million of the loan has been spent on network infrastructure, network hardware as well as working capital.
Finance Minister Tengku Zafrul Abdul Aziz500 sites integrated
According to the finance minister, DNB's 5G network has been available in Kuala Lumpur, Putrajaya and Cyberjaya since last December.
"A total of 500 sites have been successfully integrated as of Jan 9 and another 3,500 sites are targeted to be set up, covering several states included Penang, Johor, Sabah, Sarawak, Selangor, Negeri Sembilan and Malacca by the end of 2022," he told Fahmi Fadzil (Pakatan Harapan-Lembah Pantai).
The PKR lawmaker had asked about the amount of allocation directly or indirectly injected into DNB since its establishment in 2021.
DNB-Ericsson deal
Last week, Fahmi asked the MACC to probe the collaboration between DNB and Ericsson after the Swedish multinational telecommunications firm was found to have serious compliance breaches in Iraq three years ago.
Lembah Pantai MP Fahmi FadzilDNB was established by the government to build and manage the 5G network.
On Dec 15 last year, Deputy Finance Minister II Yamani Hafez Musa said the estimated cost of the project was about RM12.5 billion.
However, opposition leader Anwar Ibrahim urged the Finance Ministry to come clean over the actual total cost for the 5G network rollout project.
The opposition parties raised concern over the lack of transparency behind the rollout of 5G mobile technology via DNB, calling the government to review plans for a state-owned 5G network.
DNB chose to award the 5G network contract to Ericsson at a cost of RM11 billion after undergoing an open tender process.
Communications and Multimedia Minister Annuar Musa had said the cabinet will decide today whether to continue with its plan on a single wholesale network for the rollout of the 5G network. - Mkini


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