He said independent accounting firm Ernst and Young Malaysia had followed international standards to scrutinise companies shortlisted for the 5G network.
He was referring to the process by which Swedish multinational Ericsson had been chosen by DNB to be its network equipment provider (NEP) in a multibillion ringgit deal.
Fahmi Fadzil (PH-Lembah Pantai) interjected Yamani’s speech in the Dewan Rakyat, saying even 1MDB had hired Goldman Sachs to carry out its bonds issues.
“Do you remember? They were also professionals. So, you can’t use that argument,” Fahmi said.
However, Yamani said Goldman Sachs had raised bonds and “it was not done through open tender”.
“For the 5G network, it was done through an open tender. There is a big difference,” he said.
In addition, Yamani said there were four panels with 50 local and international experts from 10 countries evaluating the companies which had submitted bids to be the NEP for the 5G network.
He explained that the tender process to hire Ericsson started with an initial evaluation on a total of 14 bids.
“Out of that, eight companies were shortlisted and invited to bid for the network.
“The selection criteria included the companies’ performance and ability to offer end-to-end technology services and solutions. They also included safety features to protect consumers,” he said.
He said the companies also needed to have a local presence and effective plans to share experience with local companies.
“From the eight, four were in the final shortlist,” he said, adding that Ericsson scored the highest points after the stringent evaluation.
Yamani also said the 5G network was estimated to cost about RM12.5 billion, but Anwar Ibrahim (PH-Port Dickson) said the ministry should give a “definitive amount” to prevent the issue from becoming another scandal like 1MDB.
“The evaluation and tender process must be followed. I don’t believe it is just RM12.5 billion. Also, it does not matter if it is Ericsson or Huawei,” Anwar said.
“A mega project that may cost almost RM20 billion continues to be shrouded in secrecy.
“Who got the contract, which crony got it, whose children and in-laws are involved? If we have not learned our lesson from 1MDB, we will never learn.”
Yamani said DNB would engage with all the MPs to clarify any questions raised.
DNB is a special purpose vehicle company wholly owned by the finance ministry. The initial plan was for it to be the sole provider of infrastructure for the 5G network, then offering it to telcos and retailers in a single wholesale model.
Last week, communications and multimedia minister Annuar Musa was reported to have said the government was reconsidering the single wholesale model for the rollout of 5G network after receiving feedback from telcos and industry players.