Gov't should blacklist contractor over hospital works, says PAC

PARLIAMENT | The contractor and consultant involved in the RM200.7 million upgrading works of Sultanah Nora Ismail Hospital in Batu Pahat, Johor should be blacklisted for neglecting and delaying the completion works, said the Public Accounts Committee (PAC). 

In its report tabled at Parliament today, PAC noted that the Works Department had issued a Certificate of Practical Completion (CPC) on June 1, 2011, one year before the project was surrendered to the Health Ministry on May 30, 2012. 

PAC also said the contractor delayed its progress in repairing the defect. 

"We urge (the) Works Ministry to lodge a report with the relevant professional board over the negligence of the contractor and consultant," it said.

According to the PAC, the government's project, especially contracts awarded via direct negotiation, should be given to the contractor and consultant based on their financial and technical capabilities.

"The appointment of the consultant and the payment method, where the government pays the consultant directly, needs to be reviewed. This is needed to ensure the process of check and balance."

PAC also reminded the Works Department to adhere to its own guidelines and the circulars issued by the treasury. 

In April, it decided to conduct a probe in the project, which was highlighted in the third series of the Auditor-General’s Report 2014. 

The audit report, which was tabled in Parliament in Nov 2013, pointed out that beds used by patients cannot fit into four lifts worth RM2.03 million, which were not installed according to industry standards. 

The report also said a total of RM13.34 million compensation for liquidated ascertained damages (LAD) was not imposed against the developer.

In Feb 2008, Sejagat Bakti Sdn Bhd was awarded the contract by the Finance Ministry to upgrade the hospital. The works should be completed by December 2010, that was within 33 months from March 2008. 

Its scope included design, construction and maintenance of the operation gallery, emergency ward, six medicine wards, high dependency ward, blood centre, laboratory, computed tomography scan and registration system. -Mkini