Contracts of 23 govt hospital, clinic projects risk termination

PETALING JAYA: The contracts of up to 23 government hospital and clinic projects nationwide risk being terminated by the Health Ministry for failing to complete the projects within the stipulated time frame.
Health Minister Dr Dzulkefly Ahmad said stern warnings have been issued by the ministry to the contractors of these "sick projects", and that their contracts would be cancelled if there were no improvements in the near future.
He added that this has also been brought up to the cabinet, and agreed upon, on Wednesday.
To date, Dzulkefly said the government has agreed to terminate the contract of one project - Petra Jaya Hospital in Kuching, Sarawak - which was awarded to Zecon Bhd and delayed by close to two years, and that the procedure for termination was ongoing.
"Whichever sick projects that we have reprimanded and issued up to four warnings, if there are no improvements, then we have no choice (but to terminate).
"So far, there's only one, that is the Petra Jaya Hospital. And we are warning other contractors that we will no longer accept works that are as bad as this because the rakyat will be the ones suffering," he told reporters after attending the Asian Strategy and Leadership Institute (Asli) Healthcare Forum 2018, here, today.
While he could not confirm the exact figure, Dzulkefly said at least nine of the 23 projects were for the construction of hospitals, while the remaining were for clinics.
Speaking specifically on the Petra Jaya project, he said the ministry has tasked the Public Works Department (PWD) to complete the hospital and that the other nominated sub-contractors and consultants who were performing well would be retained.
"We will not do an open tender for this project as it will take a long time to complete," he said of the RM495 million project, which started in May 2013, and was initially scheduled for completion in November 2016.
The project's contractor had previously appealed for the construction period to be extended until December this year, but as of June, only 34.5% of the project has been completed.
Another hospital facing prolonged delay is the RM104 million Rembau Hospital in Negri Sembilan, which is now only expected to be completed in the first quarter of next year, from its initial schedule of September 2016.
"I have met with the contractor and given them a final chance. And if they don't buck up, then they will meet a similar fate (as the contractors for the Petra Jaya Hospital)," Dzulkefly said.
On updates on the alleged monopoly of drugs supply to the government by certain pharmaceutical companies, Dzulkefly said the special task force that has been set up to address the issue would meet next week, and will be chaired by the Economic Affairs Minister Datuk Seri Mohamed Azmin Ali.