The following article has been corrected: Isyoda solvent, not bankrupt

DAP parliamentarian Tony Pua has pledged to push the Public Accounts Committee to investigate the Shah Alam Hospital project, which is under construction.

“The government continues to award public infrastructure construction and building contracts of hospitals via direct negotiations, often to unknown or inexperienced companies,” he told a press conference today at the Parliament lobby.

tony pua “Despite the long history of botched projects, it has still not learnt its lesson. I will raise it at the PAC meeting today and request that it be thoroughly investigated .

“The question is whether the project will be completed on time, by November 2010, and what the government will do to ensure its completion.”

Pua was referring to Malaysiakini's report on the construction of the hospital. Initially budgeted at RM300 million in 2007, the cost has since ballooned to RM500 million - or higher by 60 percent.

NONE The project was awarded to newcomer Sunshine Fleet Sdn Bhd, which subcontracted it to another financially unstable company Isyoda Corp Bhd in 2007.

Isyoda, unable to bear the escalating costs, withdrew from the project earlier this year and the contract has been passed on to GM Healthcare Sdn Bhd (GMH).

GMH, it is learnt, is suffering under the burden of the huge amounts of advances and expenses demanded by the turnkey contractor, Sunshine Fleet.

Pua hoped that the Shah Alam Hospital will not join the ranks of a long list of botched hospital projects.

Queen Elizabeth Hospital (Sabah), Pekan Hospital (Pahang), Sultan Ismail Hospital (Johor), Ampang Hospital (Kuala Lumpur), Sultanah Bahiyah Hospital and Sultan Abdul Halim Hospital in Kedah have all suffered from shoddy construction and delays, he said.

“The government is expecting the rakyat to pay for its follies by introducing various new and higher taxes such as the credit card tax, the real estate property gains tax and the (proposed) Goods and Services Tax,” he added.

‘Not my baby yet’

Health Minister Liow Tiong Lai washed his hands off the matter. He said that, as the hospital is under construction, it does not yet come under his ministry’s purview.

liow tiong lai “It is true that health is under (my portfolio), but the hospital is still under construction. So you have to ask the works minister instead,” he said.

Shah Alam member of parliament Khalid Samad told Malaysiakini that he plans to bring up the matter in Parliament when the opportunity arises.

“I have to try to get more information before we try to do anything else,” he said.