The construction of the problem-ridden RM482 million Shah Alam hospital is expected to be further delayed after sub-contractor GM Healthcare Sdn Bhd (GMH) was terminated.

NONE According to a copy of the notice of termination obtained by Malaysiakini, main contractor Sunshine Fleet Sdn Bhd terminated GMH due to its repeated failure to carry out its duties as scheduled.

The notice was signed by chief executive officer Tengku Putri Arafiah Sultan Salahuddin Abdul Aziz, who is also the younger sister of the Selangor sultan.

“For your information, we have received two reminders and a warning from the (Public) Works Department (PWD) over severe delays in the completion of work by your company,” read the notice, which was served and took effect today.

Repeated attempts to contact Sunshine Fleet for verification were unsuccessful.

Toh said GMH staff were ordered this morning to leave the construction site by Sunshine Fleet, which purportedly sought police help.

“Two patrol cars came early in the morning, about 7am, together with 10 guards employed by Sunshine Fleet. The letter was delivered at 8.30am and we discussed it ... their representative told me at 11am that I was not allowed to remove our things from the site,”said GMH chief executive officer Elvin Toh when contacted today.

“We informed our sub-contractors and personnel to leave (the site) peacefully and avoid all violence and confrontation. We did not want to provoke anything.”

azlan He said more police officers on motorcycles then arrived and prevented the press and others from entering the site. They also stopped the GMH staff from removing their property.

“Their representative later ... said we have until 4pm to remove our property and leave the site. If not, something would happen,” said Toh, who noted that this was insufficient.

“We can get some stuff out but our crane and building supplies are difficult to move. Maybe something will happen to it ... I don’t know.”

Toh also said GMH and five other sub-contractors lodged separate reports at the Shah Alam district police headquarters at noon, alleging that they had been threatened and that they were forced to leave behind much of their equipment.

According to the police reports, five of the sub-contractors said the value of the equipment and supplies still at the work site was RM1.68 million.

GMH claimed it had RM30-40 million worth of  building supplies, heavy equipment and project vehicles at the site.

‘Not responsible for delays’

Toh also denied that GMH was responsible for the delays in project completion.

“You (Sunshine Fleet) tell the PWD to stop paying me, then you tell the bank not to give me money, you also take out an injunction to stop me from being paid, and you say it is my fault? You tie my hands and tie my legs and you say I don’t do anything?” he asked.

He was referring to an injunction taken by Sunshine Fleet late last month to stop payments to all parties associated with the project. It also told the PWD to stop payments for work completed in May.

So far, less than 30 percent of construction work has been completed. Most of the work was done in record time by GMH after taking over construction work, almost hitting the PWD schedule for the project.

The project was originally scheduled to be completed in November this year, but the Works Ministry has extended this to next June.

GMH took over form sub-contractor Isyoda (M) Sdn Bhd on May 21, 2009. The latter, however, signed a mutual termination agreement with Sunshine Fleet.