There are doubts Chinese government-owned telecommunications giant Huawei will be able to deliver a $136 million contract for Perth’s rail network, after the United States brought criminal charges against the company.
There are doubts Chinese government-owned telecommunications giant Huawei will be able to deliver a $136 million contract for Perth’s rail network after the United States brought criminal charges against the company.
Huawei won the contract to build and maintain a 4G communications system for the Public Transport Authority in July last year after being cleared by Australian government intelligence agencies.
Shadow transport minister Liza Harvey said concerns expressed by the Liberal opposition for the past year about the suitability of the contract had proved valid and the Premier Mark McGowan's portrayal of the contract as a phone system between train drivers was "ridiculous".
“Last night, the Premier was still trying to convince the public he was paying $200 million to allow train drivers to talk to each other; he is treating the public like idiots,” Ms Harvey said.
“This contract never passed the credibility test and the Premier has done everything in his power to stop its real purpose becoming public.
“The Public Transport Authority recommended the contract go to Cabinet but for some reason both Minister Saffioti and the Premier decided not to give Cabinet the opportunity to scrutinise it.”
Ms Harvey said it was also completely dishonest in saying the contract dealt with a simple phone system and freedom of information documents completely discredited the Mr McGowan's claim that there were no security concerns around the contract.
“We now know that the grid will be used for the automatic control of trains, for a dedicated emergency communication system in a time of crisis and for transmitting classified information.
“The advice the Premier received from his own security experts says there were serious concerns about the contract and if the Premier is so convinced he had the blessing of ASIO for this deal why won’t he release, unredacted, the advice he received from ASIO.”
West Australian planning minister Rita Saffioti said the state government is seeking advice about whether Huawei can still deliver the project given the company uses technology components from the US, which may be subject to trade sanctions.
"We're seeking assurances and also getting clarification about the ability of the contract to be delivered," Ms Saffioti said.
She said there were only two bidders who made it through the entire tender process and "the other one had probably more difficulties" than Huawei and likely could not deliver the project.
Ms Harvey accused the minister of being "a little bit loose with the truth" by suggesting Huawei was the only viable contractor.
But Huawei Australia chairman John Lord said he was not worried about losing the contract, adding the company would give a comprehensive response to reassure the state government and PTA of Huawei's priorities.
"From a board perspective, this WA transport project is our number one priority," Mr Lord said.
He said the Chinese government had never directed or asked Huawei to gather information for intelligence purposes.
"I'd like to reassure the public, nothing has changed on the security aspect."
The US has charged Huawei and its chief financial officer Meng Wanzhou - the daughter of founder Ren Zhengfei - who was arrested in Canada in December at the request of the US.
Huawei denies allegations it has violated trade sanctions, lied to banks and stolen technology.