This article first appeared in The Edge Malaysia Weekly on November 11, 2024 - November 17, 2024

An award of any large contract or concession by the government has to be made with clarity, and the government should be seen to have done its homework and awarded it to the best candidate. If need be, reasons for a particular award have to be given as well.

The recent award of the second 5G network to U Mobile Sdn Bhd, which is among the smaller telecommunications companies, especially should be explained clearly, lest there be any misunderstanding and accusations of favouritism levelled.

Late last Friday, Communications Minister Fahmi Fadzil said — pertaining to U Mobile being selected to deploy the second 5G network — it was too early to reveal the specific conditions that will be imposed on the company.

He is reported to have said, “For the second [5G] network, there will undoubtedly be specific conditions that will be set … But as for what those conditions are, we need to go through the process first.”

This is odd as one would expect the candidate to head the second 5G network — U Mobile in this case — was selected because it had met various requirements or requisite parameters and complied with the various terms and conditions.

To make matters worse, Fahmi added that the Malaysian Communications and Multimedia Commission (MCMC) would call upon U Mobile to “understand the current discussions between U Mobile and any company interested in collaborating with U Mobile”.

So the award of the second 5G network, a huge contract which would impact the lives of many, was made without knowing the mergers and acquisitions or corporate exercises in the pipeline?

But then, Fahmi goes on to say that U Mobile has met the necessary requirements to be awarded the tender to lead the country’s second 5G network, and emphasised that the decision was made independently by the MCMC. “Ultimately, MCMC has decided to go with U Mobile. I comply with MCMC’s decision,” he said.

So which is which now? Does MCMC know the specific conditions which were set or have they not been set as yet?

This whole episode does not look good for the communications minister, MCMC or U Mobile.

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