Treasurer Josh Frydenberg silent on where $50m Telstra fine will be spent

The NT government has yet to hear back from federal treasurer Josh Frydenberg over whether a $50m fine slapped on Telstra will go toward.

• Telstra whacked with $50 million fine

FEDERAL Treasurer Josh Frydenberg hasn’t returned the NT government’s call for a $50m fine slapped on Telstra to be spent on infrastructure for Aboriginal Australians.

The telecommunications giant was yesterday fined the eye-watering sum after being found by the Australian Competition and Consumer Commission to have sold mobile phone plans to 108 vulnerable Indigenous customers.

MORE TOP NEWS

Cops bust rural area man for allegedly grooming friend's 11-year-old daughter

Most of these customers were from across the Northern Territory and didn’t understand their contracts and were unable to afford them.

The NT government wrote to Mr Frydenberg in January urging him to spend the $50m fine on infrastructure to benefit Aboriginal Australians in affected communities.

Treasurer Josh Frydenberg has yet to respond to the Chief Minister’s letter. Picture Kym Smith

Following the announcement, NT digital development minister Paul Kirby said he was still awaiting a response from the federal treasurer.

“We wrote to the federal Treasurer and stressed that it makes sense for this penalty to be spent helping out those people that were directly impacted,” Mr Kirby said.

“Telstra is being fined $50 million for misleading vulnerable indigenous customers but those customers get nothing from this?”

“It just doesn’t pass the pub test.”

If Mr Frydenberg doesn’t allocate the funds to vulnerable communities, the $50m fine will flow to the Commonwealth Government.

In the letter signed and sent by Chief Minister Michael Gunner, it’s revealed the offending phone plans were sold in Casuarina, Alice Springs and Palmerston within the NT, and in Arndale in South Australia and Broome in Western Australia.

Follow @thomasmorgan22