The Government is today defending a state-owned company which has been building cellphone towers in Myanmar, one of the most repressive regimes in the world.

National has slammed Kordia's involvement in the project, saying Burma's military regime makes Fiji's Frank Bainimarama look like a junior choirboy.

But State Owned Enterprises Minister Trevor Mallard says while he would have liked to have known about the contract, it is not the end of the world.

The Prime Minister has chimed in, accusing Mr McCully of being involved in a hopeless beat-up. Miss Clark says she has never thought of the word McCully and ethics going into the same sentence. She says she knows nothing better to spread the word about democracy and repression than cellphones.

Trevor Mallard concedes Government owned companies should set higher standards, but he believes Kordia, formerly BCL, is aware of that.

He says it has to be seen in perspective, as the contract was only worth $80,000.