THE Malaysian Anti-Corruption Commission (MACC) has found that the 5G contract awarded to Swedish telecommunications company Ericsson was done through proper channels. 

In a written parliamentary reply to Fahmi Fadzil (Lembah Pantai-PH), the Prime Minister’s Office said MACC had found Ericsson to be in compliance with the procedures set to obtain the contract, hence there were no reasonable suspicions over how it was awarded. 

Fahmi had demanded that Putrajaya review the contract and requested for MACC to investigate the award after an exposé of Ericsson’s dealings in other countries. 

In February, The International Consortium for Investigative Journalists (ICIJ) had revealed Ericsson’s use of bribery to gain contracts in various countries, including Iraq.

The ICIJ stated that Ericsson had also put workers’ lives in danger and made millions of dollars in dubious payments to local actors, based on a leak of internal compliance records.

This involves funding travels for important ministers and their families, as well as paying for security to carry equipment through ISIS-controlled areas.

Ericsson had previously said that it secured the 5G deal on the basis of merit.

The government firm that awarded the contract, Digital Nasional Bhd (DNB), said the award was based on tight governance criteria and was supported by EY Consulting.

The contract was awarded in July last year.

The government announced earlier this month that it would move forward with 5G deployment under a single wholesale network approach, preventing private telecoms from building their own network to compete with DNB.

The government, on the other hand, would provide commercial carriers a 70% equity in exchange for signing a wholesale access agreement. – March 22, 2022.