97pct of DNB contracts acquired via competitive bidding

KUALA LUMPUR: As of December last year, 215 contracts with an overall value of RM7.8 billion have been signed by Digital Nasional Berhad (DNB) with 97 per cent (138 contracts) from the overall contract acquired through competitive bidding (limited tender).

Communications and Digital Minister Fahmi Fadzil said three per cent or 77 contracts were awarded via direct negotiations in 2021 when DNB was just set up with the objective of implementing 5G network in a short period of time.

"DNB was just established in 2021 with the objective of implementing the 5G network in a short period of time. At that time, DNB needed the set skills which were not available and could only be acquired from suitable global companies which have the technology," he said during question and answer at Dewan Rakyat here today.

He was replying to a question by Datuk Seri Dr Dzulkefly Ahmad (PH-Kuala Selangor) on the readiness to enforce acquisition by tender including launching the 5G project led by DNB which have invited various controversies since it was launched.

He said the government did not propose to reopen contracts that had been signed with DNB as respecting the principle of the sancity of contract, nonetheless he gave assurance that all contracts on the matter in future will be conducted through open tender.

Fahmi said the ministry is also studying and tightening the governance of DNB so that the best standards is adopted by the company

Replying to Dzulkefly's supplementary question about the quality of service (QoS) of DNB, Fahmi said the Malaysian Communications and Multimedia Commission (MCMC) will always regulate and audit the agency to assure service quality.

He said, the provisions of the Communications and Multimedia Act will also be used against any service provider including DNB if the QoS is not satisfactory.

-- BERNAMA