[UPDATED] Where are funds being spent? Zahidi pushes for MACC probe into DNB

KUALA LUMPUR – Digital Nasional Bhd (DNB) does not seem to be able to catch a break, with Deputy Communications and Multimedia Minister Datuk Zahidi Zainul Abidin being the latest to pile pressure on the country’s sole 5G network infrastructure provider.

In a surprising development today, Zahidi, whose ministry is overseeing the implementation of the country’s 5G roll-out under DNB, urged the Malaysian Anti-Corruption Commission (MACC) to initiate an investigation into the Finance Ministry-owned special purpose vehicle.

This is after he claimed a lack of transparency involving its financial dealings, including the supposed ballooning of the cost to build the telecommunications network system.

Separately, Zahidi is also alleging that he has been kept in the dark over developments involving DNB and has been sidelined from official meetings, in a revelation that is set to draw further attention on the firm.

“This issue involves a huge public fund. From supposedly costing RM11 billion at first, the cost of the 5G infrastructure is now said to be close to RM30 billion,” he told a press conference in Angkasapuri here today.

“If the spending is this huge but the rakyat is not seeing any development, there are bound to be questions. We don’t know what they are doing with the funds.

“I urge MACC to probe this matter. Where are the funds being spent? What are they paying? We don’t want this to be another 1MDB case, where Umno will be blamed.

“We want the government of the day and MACC to iron out the expenses of public money,” the Umno Supreme Council member added.

Since its setting up in March 2021, DNB has come under fire, including from politicians. To date, only Telekom Malaysia Bhd offering its Unifi service and YTL Communications Sdn Bhd, with its Yes service, have subscribed to DNB’s offer of wholesale 5G services.

Other major mobile network operators such as Celcom, Maxis, DiGi, and U Mobile have yet to accept the offer. They have until June 30 to sign on to the single wholesale network.

‘I was only called to attend one meeting on DNB’

Expressing his frustrations at DNB, Zahidi said he will be meeting with these telecommunication companies in the near future to hear their concerns.

“There are claims of monopoly, while the operators are also understood to be unhappy about having to pay so much but make minimal profit. We want to know why they are unhappy, is it because of DNB’s management?”

He added that his previous efforts in raising his concerns over DNB in Parliament has fallen on deaf ears, without receiving any updates pertaining to the 5G roll-out.

Asked to elaborate, Zahidi revealed how he was only once invited to sit in a meeting on DNB.

“Up to today, I was only called to join one briefing. After that, there was radio silence. When I raised the issue in Parliament, I was ignored. No one said anything during ministry meetings.

“I’m not sure about the (communications) minister (Tan Sri Annuar Musa). If he is involved in the discussions, maybe he did not inform me. But I believe he is involved, including in the cabinet.”

Prior to the press conference, Zahidi accepted a memorandum from Umno Youth, represented by exco member Fairuz Jamaludin, who wants MACC to initiate a probe into DNB over issues of transparency and increasing cost of implementation.

The Youth wing is also demanding that an MACC officer be placed in DNB to ensure any spending and procurement follow due process, and questioned the credibility of the company’s chief executive Ralph Marshall.

Fairuz added that DNB’s top management should also declare their assets and urged the firm to better champion the Bumiputera agenda.

A copy of the 12-page memorandum was also submitted to MACC at its headquarters in Putrajaya this morning. – The Vibes, June 21, 2022