The search for a ‘white knight’ to rescue the long-delayed Shah Alam Hospital has run into another snag, with the Finance Ministry and Public Works Department (PWD) continuing to disagree on the choice of contractors.

shah alam hospital under construction 2 Last month, the ministry had rejected a PWD proposal to appoint local construction player Gadang Engineering (M) Sdn Bhd as salvage contractor for the abandoned project (right) .

Gadang is a major player in government contracts, having bid for RM2 billion worth of public projects in last year alone.

“The PWD’s application to appoint Gadang ... is not approved. The Finance Ministry’s earlier decision stands,” the ministry stated in a letter dated June 17, which Malaysiakini had sight of.

Signed by a top treasury official, this was in reply to a PWD application in a letter dated June 2.

This is after the ministry turned down the choice of the company on March 22, in a letter rejecting the outcome of the PWD re-tender exercise.

In the June 17 letter, the ministry also called for the closed-tender process to be repeated, and for the inclusion of two more companies in the list of companies that were allowed to bid.

The two companies - GMH Healthcare Sdn Bhd and Frontier Structure Sdn Bhd - were the original subcontractors for the project, before problems with payments brought construction to a standstill.

The main contractor for the abandoned project was Sunshine Fleet Sdn Bhd which failed to complete the project after it ran into difficulties in paying the subcontractors for work delivered, resulting in its services being terminated .

Minister's requests

The ministry further rejected a request by ‘YB Menteri Kerja Raya’ (Works Minister Shaziman Abu Mansor) to drop Frontier Structure Sdn Bhd from the approved list.

NONE It was not stated why the minister wanted the company removed, but the PWD had previously rejected its inclusion on the ground that it did not fulfil requirements.

However the company then won over the Treasury Department, which decided that it should be included.

    

The Treasury, however, consented to Shaziman’s (right) recommendation for six companies to be included in the approved list for the new tender exercise:

1. Johawaki Sdn Bhd

2. WCT Berhad

3. Almatab Sdn Bhd

4. Trans Resources Corporation Sdn Bhd

5. Ekovest Construction Sdn Bhd

6. Global Flame Sdn Bhd

Some of these companies had previously been awarded government projects and contracts.

Ekovest Construction and Trans Resources Corporation were, for example, involved in public infrastructure projects like hospitals, schools and stadiums.

Neither Shaziman nor his representative were available for comment when contacted yesterday.