RM1.67million per bed - Another Malaysian Scam

PWD goes silent on overpriced

Hospital Shah Alam

By Hazlan Zakaria

More than a month after allegations of irregularities surfaced over the

Shah Alam Hospital project, the Public Works Department (PWD) has

yet to respond to the questions raised.

Last month, Malaysiakini reported source-based claims that the contract

was awarded under debatable circumstances and at an inflated price of

about RM500 million to Sunshine Fleet Sdn Bhd, a company owned by

a member of the Selangor royalty.

The company has allegedly been skimming off project funds for 'advances'

and 'expenses', and also stands accused of harassing companies it had

engaged as sub-contractors. It has refused comment, saying that queries

should be directed to PWD which 'owns' the project.

Since then, PWD secretary-general Judin Abdul Karim - who signed the letter

awarding the contract - has not been available for comment, despite repeated

phone calls to his office. The matter was referred instead to Judin's special officer Zulakmal Sufian, who

requested that the questions be emailed to his boss, with a copy to him. This was duly done on Dec 10 and Zulakmal confirmed receipt by phone. He later

indicated that the questions had been addressed by Judin and that the response

would be sent when public relations officer Saipol Anwar Mohd Raji has reworked it. Among the questions were whether the contract was awarded in an open tender or

if it was directly negotiated and why the cost has escalated from the original allocation

of RM300 million.

When contacted, Saipol said he is unaware of the email and the

response and asked for the questions to be forwarded to him. This

was done on Jan 5.

He acknowledged receipt the same day, pledging to revert with a response

as soon as possible but has yet to do so.

Prior to this, sources close to the PWD confirmed the existence of an internal

report that was commissioned to address the issues, together with a list of

answers to Malaysiakini's questions.

However, the source implied that the matter is being held up pending

approval by Works Minister Shaziman Abu Mansor.

Yesterday, Saipol said his department has yet to go through the response

because the personnel "are busy with more routine matters".

While he apologized for the delay, he could not say when and if a response

can be expected.

"Hint of corruption"

Transparency International-Malaysia president Paul Low has questioned

whether the contract was awarded through a fair and open tender process.
"Were there submissions by other contractors? Did the PWD evaluate the

submitted tenders in an objective and professional manner? Was the

awarding of the project made in keeping with best practices and in the

interests of the public?" asked Low.

Malaysian Institute of Corporate Governance president Megat Najmuddin

Megat Khas, when contacted, said, "If there is any hint of corruption or

abuse of power, then the MACC must step in to investigate. If any fraud

is seen, the police must step in.

"We cannot compromise in our fight against corruption and other criminal

acts of a financial nature, irrespective of the personalities involved. Nobody

is above the law."

The 300-bed hospital is slated to open in November.