This article first appeared in The Edge Malaysia Weekly on December 2, 2024 - December 8, 2024

Last Wednesday (Nov 27), Fahmi Fadzil told the Dewan Rakyat that when he took over as minister of communications and digital, it appeared as if neither the people in the ministry nor the Malaysian Communications and Multimedia Commission (MCMC) knew about the happenings within Digital Nasional Bhd (DNB).

“At the time, the deputy Treasury secretary-general [Datuk Johan Mahmood Merican], who is now Treasury sec-gen, himself did not have any visibility on what was happening in DNB, although DNB is a company under the Minister of Finance Inc,” he said, describing the situation as “horrifying and quite alarming” (“menyeramkan dan agak mencemaskan”).

Fahmi was responding to PKR Member of Parliament for Pasir Gudang Hassan Abdul Karim, who, among others, asked whether it was true that DNB’s 5G rollout required RM16.5 billion in public funds.

The following day, however, Minister of Digital Gobind Singh Deo told the Dewan Rakyat that due diligence had found matters of governance and financials involving DNB to be “in order”. He said the government had provided only RM500 million in equity injection in 2021, a shareholder’s loan of RM400 million by the Minister of Finance Inc in May 2023, and government guarantee on DNB’s financing.

These provisions by the government will be “taken over” or satisfied by other DNB shareholders — the telecom companies — ahead of the second 5G network rollout and will eliminate any concerns of potential losses by the government, Gobind said.

First, the conflicting statements risk adding more confusion among the public. To avoid politicising the issue and to put the debate to rest, the Public Accounts Committee ought to examine the debacle around DNB.

Second, just as Johan is currently on the board of DNB as chairman, he was preceded by Datuk Seri Asri Hamidon, the previous Treasury sec-gen. As such, Fahmi’s comments about how Johan was not in the loop appears mischievous and risks giving a false impression, unless Asri, too, was not in the know. Fahmi could seek details from Asri, who remains with the government, having been appointed to a special committee on the rationalisation of federal statutory bodies in September.

More questions for Fahmi: Was the then minister of finance unaware of the happenings in DNB and does he agree with Fahmi’s allegations? After all, the individual — Tengku Datuk Seri Zafrul Abdul Aziz, the current minister of investment, trade and industry — still sits in the current cabinet.

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