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WA Confirms $136m Huawei Deal

Transport Minister. Rita Saffioti.

The WA Labor Government has confirmed that it’s going ahead with a deal to pay controversial Chinese company Huawei $136 million to construct and manage digital radio systems for data and voice services for Perth’s 180km rail network.

“The State Government is committed to delivering this project and making sure that the proponents deliver on their contractual obligations. To that end, the state will continue to monitor this contract, with the involvement of other key state agencies,” said state Transport Minister Rita Saffioti.

Huawei was awarded the contract in July last year, a month before Canberra’s announcement of a ban on Huawei for 5G projects in Australia.

The WA Government in January this year confirmed that it was looking to review the contract,  following reports that Huawei was facing charges from the US on conspiracy, bank fraud, wire fraud, obstruction of justice, money laundering, and conspiring to steal intellectual property.

But work was already underway, having been started in July 2018. It’s now proceeding and is set for completion by 2021.

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