PAC proposes appointment of experienced contractor for HSA project

PAC chairman Datuk Seri Hasan Arifin in a statement issued after the PAC tabled its report on the management of the Shah Alam Hospital (HSA) construction project in the Dewan Rakyat here today, said such a move would be more effective than the direct negotiation.

"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.

Commenting further, Hasan said the PAC also suggested that the government reclaim the RM68.53 million being overpaid to a company to avoid losing public money.

"Contractors to be appointed must also have the expertise and experience in hospital construction projects," he added.

The company was appointed by the Finance Ministry on a direct negotiation basis as the contractor for the construction of the HSA from Nov 15, 2007 to Nov 14, 2010.

The contract, however, was terminated on Sept 3, 2010 by the Public Works Department as there was no serious effort to complete the construction works despite the two warning letters issued by the department.

The PAC concluded that failure to complete the HSA project was due to the fact that the contractor was inexperienced in the construction of the hospital.

The construction issue was raised in the Auditor-General's Report 2013 Series 3, tabled in the Dewan Rakyat on Nov 10, 2014.