PAC blames hospital project failure on inexperienced contractor
Public Accounts Committee (PAC) has blamed the inexperienced contractor appointed by Finance Ministry through direct negotiation in July 2006 on the failure to complete Shah Alam Hospital (HSA).
Sunshine Fleet Sdn Bhd (SFSB), a company linked to the Selangor royal family, secured the RM482 million deal to build a maximum 500-bed capacity hospital in Shah Alam within 36 months.
"We are in the opinion that the failure on the completion of the project was caused by the contractor who had no experience in hospital projects," said the PAC report.
As of September 2010, SFSB only managed to complete 27 percent of the project instead of 33 percent scheduled progress of work.
Public Works Department terminated the agreement with the contractor as there was no serious effort to complete the construction despite two warning letters issued by the department...
Public Accounts Committee (PAC) has blamed the inexperienced contractor appointed by Finance Ministry through direct negotiation in July 2006 on the failure to complete Shah Alam Hospital (HSA).
Sunshine Fleet Sdn Bhd (SFSB), a company linked to the Selangor royal family, secured the RM482 million deal to build a maximum 500-bed capacity hospital in Shah Alam within 36 months.
"We are in the opinion that the failure on the completion of the project was caused by the contractor who had no experience in hospital projects," said the PAC report.
As of September 2010, SFSB only managed to complete 27 percent of the project instead of 33 percent scheduled progress of work.
Public Works Department terminated the agreement with the contractor as there was no serious effort to complete the construction despite two warning letters issued by the department.
A total of RM139.98 million was paid to the contractor, which included an overpaid sum of RM68.53 million.
PAC has recommended to the government to ask the contractor to refund the overpaid sum.
Meanwhile, PAC also recommended to the government to appoint contractors under limited tender basis to implement projects which are complex, such as the construction of a hospital.
In his statement, PAC chairperson Hasan Arifin said such a move would be more effective than the direct negotiation, reported Bernama.
"The management of HSA construction project needs to be implemented in a more orderly manner and efficiently so that it can be utilised according to the objectives of the construction and thus getting the best value for money for every ringgit spent by the government," he said.
Hasan added that the PAC also suggested that the government reclaim the overpaid RM68.53 million to avoid losing public money.
"Contractors to be appointed must also have the expertise and experience in hospital construction projects," he added.
SFSB is owned by the Selangor sultan's sister, Tengku Putri Arafiah Sultan Abd Aziz Shah (70 percent), her son Putera Azamuddin Shah Abdul Aziz (10 percent), and her uncle Tengku Abdul Samad Shah Sultan Salahuddin Abd Aziz Shah (20 percent).
