KUALA LUMPUR, Nov 9 — Kubang Pasu MP Datuk Amiruddin Hamzah has urged for close supervision of Digital Nasional Berhad (DNB) that is in charge of Malaysia’s 5G rollout, warning it may spark another scandal like 1Malaysia Development Berhad (1MDB) without it.

The Parti Pejuang Tanah Air MP said this is because the government-linked company sits directly under the Ministry of Finance (MOF) and is funded by bonds, but has so far not provided transparency on its financial management.

"The establishment of DNB which is wholly owned by MOF lacks transparency on its establishment, administration and financial management. The fact it gets money from MOF in the shape of bonds is worrying as it has the potential to be another 1MDB,” said Amiruddin.

"The government's reason, that by monopolising the 5G rollout they can provide faster internet speed and cheaper prices, is not accurate. We could make up to RM12 billion upfront without having to spend a sen, but now we are competing with the existing telecommunications companies.

"This will lower their value and add unnecessary expenditure on the government when we are already incurring huge debts,” he added.

DNB is a government-owned special purpose vehicle (SPV) set up to build, own and operate Malaysia’s 5G infrastructure.

Pakatan Harapan leaders want the government’s 5G plans to be debated in Parliament, claiming Putrajaya’s proposed set up of the RM16 billion SPV that would have total control over the spectrum distribution right could potentially expose the public to massive debt.

Amiruddin claimed that countries like Belarus, Mexico and Rwanda made huge losses with this kind of policy where the government intervened.

In comparison, he said countries where the private sector was left to roll out the 5G network yielded profits.

He listed Thailand which he claimed saw profits of RM12 billion, Germany (RM36.8 billion) and South Korea (RM25.3 billion).

"So what’s the reason to form another company in the same industry with taxpayers’ money? Isn’t this similar to the modus operandi of 1MDB which caused the people and government huge losses?” he asked.

"In this current climate where we’re recovering from the pandemic such a risky endeavour should not be done. It should be postponed or cancelled and open the 5G spectrum to existing companies,” he added.

Amiruddin also highlighted several newly formed foundations under ministries and claimed these may be misused by the ruling party for political purposes.

He listed the Yayasan Keluarga Malaysia (YKM) as an example, noting that it has been allocated RM25 million to help children orphaned due to Covid-19.

Amiruddin said the chairman of these foundations were also ministers.

He claimed the funds allocated to the foundations could be abused on the pretext of helping the public.

He suggested that it would be better to channel the same amount of funds to established non-governmental organisations instead.

He pointed out that these NGOs have better knowledge and expertise to help children, compared to new foundations that may be occupied with setting up their offices, hiring staff before getting down to business.

"Foundations are often used as wallets for the chairmen to go to the ground to give aid to people in their constituencies.

"It has the potential to be used by the ruling party as a political vehicle and for politicians to use it for their own purposes

"There needs to be a representative from MoF in all of these foundations to ensure good governance, but sadly this government till today has not done so,” Amiruddin said.

The Opposition MP held up Datuk Seri Najib Razak as an example of a political leader who was found guilty of financial abuse by the courts but had yet to pay for his crimes.

Amiruddin said Najib and 1MDB had forced the country to shoulder so much debt, but the Pekan MP was still acting like a free man and even campaigning for Umno in the Melaka state election.

"The message we want to send is that those who were accused and then found guilty must act like a guilty person. Whoever he supports in Melaka must give a clear signal on this matter,” the Pejuang politician said.

Najib was found guilty by the High Court of power abuse and misappropriating over RM42 million belonging to SRC International Sdn Bhd, a former 1MDB subsidiary last year.

He was fined RM210 million and a total of 12 years in prison in July 2020, but was granted a stay pending his appeal of the conviction.

The former prime minister is also still standing trial for several other 1MDB-related cases.