DIGITAL Nasional Bhd (DNB) is not 1Malaysia Development Bhd (1MDB), Deputy Finance Minister Yamani Hafez Musa said, after telling Parliament that the overall cost for the 5G rollout has been revised to RM12.5 billion instead of RM11 billion.

“DNB anticipates another RM1.5 billion (over 10 years) will be needed as the telecommunications infrastructure in the country is deemed ‘too low’.

“As such, the overall cost for the whole project is estimated to be RM12.5 billion,” Yamani told Dewan Rakyat today.

In earlier reports, the Finance Ministry said the project was expected to cost RM11 billion.

But Yamani said DNB is not the same as 1MDB after the opposition complained about the lack of transparency over its costing.

“The ministry wants to stress they are two different entities. The DNB tender process was structured by five professional bodies and followed global standards,” said the Sipitang MP.

“In 1MDB, Goldman Sachs raised bonds and it was not an open tender system. There’s a big difference. This has four panels comprising 50 local and international experts from 10 countries who were selected based on experience in implementing 5G systems.”

He said the tender process began with 14 companies at the early assessment stage before eight were shortlisted.

“Of the eight invited to submit tenders, four submitted,” said Yamani.

The deputy finance minister was responding to opposition leader Anwar Ibrahim (Port Dickson-PH) on calls for more transparency in the workings of DNB.

Anwar said the DNB project had the makings of another 1MDB scandal as it is shrouded in secrecy.

“There are statements that say it is RM15 billion while others say it is RM18-RM20 billion. What we want is a definitive answer,” said the Pakatan Harapan chairman.

“I don’t believe it is just RM12 billion as there will surely be additional infrastructure needed. The government is just understating the value of the project so as to not shock everyone,” the opposition leader said, adding that Parliament should be allowed to debate the DNB project.

Anwar said DNB’s explanations should not be done in the form of media advertisements as it involves taxpayers’ money.

He said that Parliament should be told who else is getting the contracts for DNB’s 5G rollout.

“Whose cronies or family members are benefiting from this project? We must know,” said Anwar.

“If we don’t learn from the 1MDB scandal, we will never learn.”

The 1MDB scandal began as a sovereign wealth fund called the Terengganu Investment Authority. Under the guise of a sovereign wealth fund, it bought non-existent assets that were funded by bonds backed by the government.

The scandal, which dates back to 2009, later showed how various government agencies and notable investment bankers and accounting firms worked to cover the fraud before it was exposed by opposition politicians, journalists and whistleblowers. – December 15, 2021.