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10 APRIL 2024

Sunday, June 26, 2011

Original subcons in troubled hospital re-tender list?

The scandal involving the troubled Shah Alam general hospital drags on, with suspicions that the original subcontractors have been entered into the list of companies offered the job in the re-tender process.

This is despite the government previously rejecting an offer from original subcontractor GM Healthcare Sdn Bhd to complete the much delayed project at a RM3 million discount.

The RM482 million project, which has been hit with a number of controversies and was originally to be completed this November, has been granted a seven-month extension by the Public Works Department (PWD).

NONEWhen asked of this on Thursday, Works Minister Shaziman Abu Mansor (right) skirted the issued by saying that he "does not remember" the names of the contractors offered the job.

"I did not look at the list of contractors (for the limited tender) in detail... I don't remember, I don't remember," he said when met at the launch of the Kuala Lumpur - Kuala Selangor highway today.

According to the minister, the re-tender process is currently with the Finance Ministry, and that "there is only a little left" until the Finance Ministry announces its decision.

"The (Finance) Ministry has asked (the Works Department) to look at the value management aspect and we have given our views to (them)," he said

The matter was revived by Shah Alam parliamentarian Khalid Samad at a press conference last month, following what the parliamentarian said was an anonymous tipoff.

Khalid said that he received a dossier of documents in the mail, including copy of a letter, with a Finance Ministry letterhead, addressed to the JKR director general, which indicates that the two subcontractors have been included in the re-tender process.

The two original subcontractors are GM Healthcare Sdn Bhd and Frontier Structure Sdn Bhd, both of which formed a joint-venture to undertake the project as a subcontractor under Sunshine Fleet Sdn Bhd, a company owned by members of the Selangor royal family.

Inter-ministry letter on re-tendering

In the letter dated March 22 and meant for the attention of JKR deputy director general Mohd Noor Yaacob, and distributed to press by Khalid, the Finance Ministry stated that it had rejected the outcome of the first re-tender.

"JKR's recommendation to award the contract to... Gadang Engineering (M) Sdn Bhd for an after-discounted price of RM410,870,000 to be completed in 24 months has not been passed.

"The project is to be re-tendered through conventional (limited) tender among the same companies (in the first re-tender) plus GM Healthcare and Frontier Structure," the letter read.

orange book forum klscah 250111 khalid samadThe letter also matches Shaziman's statement that the JKR had been asked by the Finance Ministry to undertake value management.

It is uncertain who from the Finance Ministry had sent the letter as Khalid (left) was prepared to only provide the first page of the letter to media.

"I cannot vouch for the veracity of the letter as I got it anonymously through the mail...but it looks very real to me," he said.

Khalid added that the first re-tender was closed on Dec 17, 2010 and no award has yet been made.

He had on June 10 handed over the letter to the Malaysian Anti-Corruption Commission as he suspected there were "elements of corruption" involved.

Subcontractor confirms being on new list

The Works Ministry pulled the plug on the hospital project on Sept 3 following a delay of work for 62 days and absence of construction activity at the site since August last year, due to a dispute between the contractors.

The ministry's decision followed Malaysiakini's special reports on the issue, starting with the irregularities in the initial award process to Sunshine Fleet, at the price of RM482 million.

When contacted, GMH Healthcare Sdn Bhd CEO Elvin Toh confirmed that the company had been included in the re-tender list along with Frontier Structure Sdn Bhd.

"We are still awaiting the results," he said, adding that he did not know when the award will happen.

Frontier Structure Sdn Bhd's representatives declined comment. - Malaysiakini

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