Digital Nasional Bhd Denies Allegations of Lack of Transparency in 5G Network Procurement

DNB, Malaysia's 5G project company, strongly denies allegations of lack of transparency in its Ericsson 5G equipment procurement, citing rigorous evaluation and Cabinet review. Maintaining public trust is crucial for the successful 5G rollout.

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Digital Nasional Bhd Denies Allegations of Lack of Transparency in 5G Network Procurement

Digital Nasional Bhd Denies Allegations of Lack of Transparency in 5G Network Procurement

Digital Nasional Bhd (DNB), the state-owned company responsible for Malaysia's national 5G project, has strongly denied allegations of a lack of transparency in its internal operations and 5G network equipment procurement from Ericsson. In a statement released on April 21, 2024, DNB emphasized that its tender and procurement processes adhere to strict governance standards and best practices, as outlined in reports presented in Parliament and media.

The company was responding to a media report that alleged a lack of transparency in DNB's contracts with third-party vendors, particularly for Ericsson's 5G network equipment, software procurement, and a cloud services platform. DNB rejected the insinuation of any impropriety in its governance and procurement practices, stating that it has always been open and transparent in its awarding of tenders and contracts.

Regarding the 5G network award to Ericsson, DNB clarified that the process involved a rigorous evaluation by an independent global professional services firm and 50 local and international experts from 10 countries with 5G network rollout experience. The company stated, "The awarding of the 5G network equipment contract to Ericsson involved a rigorous evaluation process, with Ericsson obtaining the highest score across all prerequisites." DNB added that the contract has been reviewed by multiple parties, including the Malaysian Cabinet.

Why this matters: The allegations against DNB's transparency in the 5G network procurement process raise concerns about the integrity and fairness of the project, which aims to accelerate Malaysia's digital transformation. As a state-owned company entrusted with a critical national infrastructure project, DNB's adherence to strict governance standards and transparency is vital for maintaining public trust and ensuring the successful implementation of the 5G network.

DNB also denied claims made about the recent Share Subscription Agreements (SSA) signed by five telcos, stating that the process is still ongoing and they are unable to comment further due to confidentiality restrictions. The company emphasized the importance of published reports being verified and based on accurate information, as DNB is a public utility serving the public interest. DNB remains focused on delivering a high-performing and reliable 5G network to accelerate Malaysia's digital transformation.

Key Takeaways

  • DNB denies lack of transparency in 5G network equipment procurement from Ericsson.
  • DNB states its tender and procurement processes adhere to strict governance standards.
  • Ericsson's 5G network equipment contract awarded after rigorous evaluation by experts.
  • DNB denies claims of impropriety over recent Share Subscription Agreements with telcos.
  • DNB remains focused on delivering a high-performing and reliable 5G network for Malaysia.