DNB’s governance, financial practices in order, says Gobind

 

Digital minister Gobind Singh Deo said the government only provided DNB with RM500 million in equity in 2021 and RM450 million in shareholder loans in May 2023.  (Bernama pic)

KUALA LUMPUR: 

Digital Nasional Berhad’s governance, financial practices and administrative operations are in order, according to digital minister Gobind Singh Deo.

Speaking in the Dewan Rakyat, Gobind said he had ordered a due diligence audit on DNB after his ministry took over the agency in January.

He also said parties in DNB were called up to fully explain the company’s operations.

“The results (of the due diligence audit) have shown that the administrative and financial aspects are in order, with no problems identified,” he said when wrapping up the debate on the 2025 budget for his ministry today.

Yesterday, communications minister Fahmi Fadzil told the Dewan that both his ministry and the Malaysian Communications and Multimedia Commission were completely unaware of DNB’s operations when he first took on the portfolio.

He said even the then Treasury deputy secretary-general had no insight into the activities of DNB though it was a Minister of Finance Incorporated (MoF Inc) company.

DNB was previously parked under the Prime Minister’s Department before it was moved to the then communications and digital ministry helmed by Fahmi.

Addressing concerns about DNB’s funding for implementing the first 5G network, Gobind said the RM16.5 billion allocated to the company over a 10-year period came with limited government involvement.

He said the government only contributed a RM500 million equity injection in 2021 and a RM450 million shareholder loan from MoF Inc in May 2023.

“Other than that, DNB is financed through private loans, including bank loans guaranteed by the government, as well as other financial sources,” he said.

Gobind also said the telecom companies within DNB must pay the government before the second 5G network can be implemented.

“In other words, the government will be repaid by the telecom companies, clearly indicating that it will not incur any losses,” he said, without specifying the mechanisms or terms of repayment by these companies.

In response to Howard Lee (PH-Ipoh Timor), who asked whether the Malaysian Anti-Corruption Commission (MACC) was involved, Gobind said that he would provide Lee with a letter from the anti-graft agency. - FMT