Two tales by ministers over DNB

 

The calibre and competence of two ministers in Pakatan Harapan - PKR’s Fahmi Fadzil and DAP’s Gobind Singh Deo came under close scrutiny when they gave contrasting and contradicting answers to questions over Digital National Berhad (DNB), the corporation to spearhead 5G.

One was shown up for his incompetence and lack of action.

Who came out tops in these two separate appearances could have been easily avoided if one of them had stuck to his area and not attempted to answer on behalf of the other. Let’s see.

First off the block was Communications Minister Fahmi, speaking in Parliament in response to a query from Pasir Gudang MP Hassan Abdul Karim on Nov 27.

He said when he joined the cabinet - as then communications and digital minister - it appeared that no one knew what was going on in DNB. It’s good to view the video for a useful perspective.

Some excerpts: “There were several things when I took over the portfolio that were horrifying and alarming, where we found that it appeared no one in the ministry or the Malaysian Communication and Multimedia Commission (MCMC) knew what was going on in DNB when I took over.

He added that even the then-treasury deputy secretary-general (Mahmood Merican) did not have “any visibility” despite DNB being a Minister of Finance (Incorporated) company.

Hassan had asked regarding allegations that the previous Muhyiddin Yassin administration had allocated RM16.5 billion of public funds for the first 5G network rollout by DNB in 2021.

Responding to Fahmi’s remarks, former DAP MP Ong Kian Ming asked: “What action steps did Fahmi take to clean up the ‘horrifying and concerning’ things that he found at DNB when he first became minister?”

What was Fahmi doing?

At the start of his short reply in Parliament, Fahmi said that DNB was no longer under him and it was better answered by the digital minister.

Fahmi was appointed as communications and digital minister on Dec 22, 2022, but less than a year later on Dec 12, 2023, Gobind was appointed digital minister, leaving Fahmi with the communications portfolio.

He should have stopped there instead of going on because Gobind was appointed more than 11 months ago. Fahmi had nearly a year to find out what happened at DNB but obviously did not.

It was, therefore, not just perplexing but totally unacceptable that Fahmi did not know what was happening at DNB even after one year as digital minister before he was replaced by Gobind.

Gobind’s reply on DNB demonstrated class, calibre, competence and composure when he addressed the issue in Parliament a day after Fahmi’s faux pas demonstrating his lack of knowledge. Interested readers can watch the video.

In clear, concise language he dispelled all doubts over DNB and publicly gave a clean bill of health to the government-sponsored company entrusted with the rollout of the first 5G network.

He said: “In January (this year) I was assigned to the digital ministry. I directed them to have an audit and due diligence - detailed. There were no extraordinary matters. The due diligence showed in terms of administration and finance everything is in order.”

“I emphasise that we had summoned them to explain. It (the rollout of 5G by DNB) is seen and recognised as one of the best rollouts in the world. We need the 5G infrastructure.”

Govt won’t lose money

Gobind went on to assure the government would not lose any money over DNB and that the second wholesale digital network would not proceed until the government’s spending on DNB was paid in full.

He said: “That RM16.5 billion is for 10 years. Until now, it does not involve government finances except for an equity injection of RM500 million in 2021, and a shareholders’ (government) loan of RM450m in May 2023.

“DNB also has bank loans guaranteed by the government. It has so far spent RM5 billion on the 5G network. The RM950 million (government funds injected) will be taken into account and paid back to the government.

“The second network will not proceed until this amount is paid back to the government. It won’t involve government spending at all.”

Under the original 2021 plans, DNB was supposed to have been the single wholesale network provider for the provision of 5G.

However, this was changed by the new coalition government which came to power in November 2022, announcing in May 2023 that a second operator would be appointed.

On Nov 1, U Mobile was controversially selected to be the second operator, the least qualified of the three mobile operators, the other two being CelcomDigi and Maxis, as I explained in this article titled “5G: Spectrum value, the Singapore link, and other issues”.

I also said that a single network would be more appropriate and would cost less because the infrastructure would not be duplicated.

Competition concerns would be allayed by the fact that the major telecommunication companies will have stakes in DNB, which will be independently run.

Gobind, in his reply also addressed concerns over the viability of DNB.

“There are no problems. DNB has tendered 41 projects so far. DNB will be in the industry, and I am confident it will succeed. Processes have been undertaken to ensure everything is in order. The success of DNB is seen by 82 percent coverage and 16 million customers,” he said.

Gobind also explained that under the shareholder subscription agreement (SSA) for DNB, TM and four others were to take 65 percent equity with the government holding 34.9 percent.

However, TM wanted more time and a second extension request was not agreed leading to TM no longer participating in the SSA.

But he pointed out that this is not the same as the access agreement for 5G which continues to be in place, implying that there will be no disruption to 5G services.

If only the Communications Ministry communicated in such a clear, concise, competent manner, Fahmi’s calibre and standing, now somewhat wobbly, would improve. - Mkini

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P GUNASEGARAM continues to hope that the government will revert to the superior model - the single wholesale network - which will lead to lower costs and hence lower charges for us, the consumers.

The views expressed here are those of the author/contributor and do not necessarily represent the views of MMKtT.