(Ottawa) Canadian politicians are debating whether American billionaire Elon Musk poses a national security risk following a $2 billion federal government loan to a telecommunications satellite operator.
According to Prime Minister Justin Trudeau’s office, the money is to help Telesat complete and operate the Lightspeed satellite network, which would improve internet services in the country.
The Liberal government has promised to connect all Canadian households to high-speed internet by 2030.
Conservatives believe the government should have turned to Mr Musk to help make this happen. They say Starlink, a company owned by the American billionaire, can provide the same service for less than half the price.
The government responds by saying it is a matter of national security, adding that it is important that a Canadian company controls this crucial infrastructure.
Telesat President and CEO Dan Goldberg said there was a misunderstanding about the loan. He said Telesat would still have to pay 9% interest. The company also provided warrants for 10% of the common shares of Telesat LEO, a subsidiary that is the beneficiary of the loan, to the government.
The Quebec government is also involved since it granted a loan of 400 million to the project.