Inexperienced contractor led to construction flaws in hospital

AUDIT REPORT The Finance Ministry’s fast track appointment of an inexperienced contractor had affected the performance and quality of construction for the Hospital Sultanah Nora Ismail, Batu Pahat, Johor, upgrading project, the auditor-general’s report 2014 said.

According to the third series of the report released today, the RM200.7 million project was completed 90 days after its 33-month deadline had lapsed on Dec 15, 2010.

The contractor, Sejagat Bakti Sdn Bhd, was found to have handed over the hospital to the Health Ministry one year after the project was issued a Certificate of Practical Completion (CPC), despite some of the works not being up to required specifications.

“For example, four lifts costing RM2.03 million were designed and installed not in accordance to contract specifications, which eventually caused some difficulty in transporting ICU beds,” the report said.

The CPC was also issued although the operating theatre and the intensive care unit could not be used, the report said.

At the same time, the government had also failed to impose RM13.4 million in liquidated and ascertained damages on Sejagat Bakti, due to the issuance of CPC, although the work was incomplete.

Other issues raised included discrepancies in the contract management between the Public Works Department and Sejagat Bakti.

Sejagat Bakti had signed a contract agreement with the Public Works Department on Oct 16, 2008, eight months after being issued with an acceptance letter.

A total of RM801,700 for transportation services and equipment facilities was only approved nine months after the contract had been signed.

In the report, it was also stated that transportation service amounting to RM700,700 did not comply with the stipulated standards.

As such, the auditor-general's report had recommended the Works Ministry as well as the Health Ministry to take appropriate action against officers found to have neglected their duties in managing such contracts.

It also urged the government to review regulations on the requirement of transportation services based on project needs. -Mkini