Works Minister S Samy Vellu must be sacked if he refuses to act against the contractor of the Sultan Ismail Hospital in Johor Baru, which has been hit by a deadly fungal infection.

In a press statement today, DAP secretary-general Lim Guan Eng expressed dismay with the minister's decision not to take action against turnkey contractor MH Projects (M) Sdn Bhd.

He said the government must lead by example and show the private sector how to conduct businesses with honesty and transparency.

The opposition leader was responding to Prime Minister Abdullah Ahmad Badawi's remark yesterday that Malaysia must have good governance and business ethics in the private sector as well as fight corruption to attract foreign investment.

"The prime minister can only convince the private sector that he means what he says by over-ruling the works minister's decision not to take action against the hospital contractor," he said.

The hospital, which cost RM557.8 million, was forced to close down on Sept 26 barely two months into operation.

Shameful incident

Lim said the scandal has not only resulted in colossal financial loss but also brought shame to the country.

"Malaysia's international image has become a joke when Samy Vellu said the seriousness of the flaws that caused a new hospital to close down were 'normal in big projects and we cannot blacklist the contractor or there will be no more contractors to hire'.

"This gives the impression that shoddy and irresponsible contractors who do not complete their contracts or compromise on safety and quality is the norm in Malaysia," he added.

The DAP leader said failure to act would give rise to the question as to why the minister and the government are going out of their way to protect the contractor.

"Abdullah must direct Samy to either take stern action against the contractor to remedy its mistake, withhold full payment of the RM557.8 million until the 27 months warranty period has expired, pay compensation and blacklist the contractor or sack Samy Vellu for failing to protect the interests of Malaysians," he added.