CANBERRA, AUSTRALIA -- Australia's Attorney General has banned Huawei from bidding on a federal, multi-billion dollar broadband network project, citing concerns over cyber-terrorism.

According to Australia media reports, the ban is tied to cyber attacks said to have originated in China, and Huawei’s CEO’s reported links to the Chinese Army. The decision scuttles an attempt by Huawei to get a piece of the $38 billion network.

Australian Prime Minister Julia Gillard said Monday the move was among "prudent decisions" to ensure the planned network functions properly.

"As a strategic and significant government investment, we have a responsibility to do our utmost to protect [the network's] integrity and that of the information carried on it," a spokeswoman for Australia's Attorney General, Nicola Roxon, told the Australian Financial Review.

Australia is not the first country to suspect Huawei of being a party to foul play. A US congressional panel plans to investigate whether Chinese telecom OEMs are providing cover for Chinese spying in the US.