Temerloh Hospital Project

We call on the Works Minister Datuk Seri S. Samy Vellu to conduct immediate investigation into the Temerloh Hospital Project to ascertain whether there have been improprieties
Media Statement
by Dr Tan Seng Giaw

(Kuala Lumpur, Monday): The Public works Department has been monitoring the Temerloh Hospital project (PHTSB) which, as a turnkey contractor, is responsible for the design, construction, equipping, commissioning and maintenance of the hospital. The contract number is JKR/IP/B/24/2002. This project is supposed to cost RM500 million.

The project is situated at the 44-acre site, Kampung Paya Luas, Mukim Perak, Daerah Temerloh. The possession of the site was on 8 March, 2002. But, works started in 2001. Is there special privilege given to PHTSB? Works was due for completion on 7 September, 2004. This was extended to 6 December, 2004. The Certificate of Practical Completion was issued on 15 January, 2005, without full consideration of the actual status of the progress of the project.

The main contractor for the project is PHTSB with Syarikat Permodalan Kebangsaan (SPK) having 40% shares, Mokhtar Mohamad Nazir (MMN) Bina 40% and Aspirasi Sama 20%. Some believe that PHTSB has been awarded the contract under an unusual circumstance. While SPK and MMN Bina are listed in the Construction Industry Development Board (CIBD), we are not clear about Aspirasi Sama.

In line with the provision of Clause 8 of the Conditions of Contract, the Contractor shall ensure that the quality of works as a whole must be maintained and that the works are carried out in conformity in every respect with the requirements of the contract.

The contractor shall engage full time on site during the whole duration of the contract adequate number of professional engineers or other appropriate professionals registered with the respective boards in Malaysia and sub-professional staff to provide close supervision of the works at all times to ensure full compliance with the design and specification of the works.

For example, the paved roads and car parks have not been constructed to the required qualities. The contractor has promised the use of granite which is RM18 per tonne, whereas in some parts it is using limestone, costing RM11 per tonne. Has Puan Puteh Kamariah Bt Mohamad, who is PWD quantity surveyor, surveyed the quality of all the materials used?

The covered pedestrian walkway has three road gaps. Why is it not covered?

Testing and commissioning for the mechanical and electrical works is not completed. Datuk Seri S. Samy Vellu should let us know whether there is a schedule for Technical Viability of the testing and commissioning ?

We have often heard the Works Minister talked about the certificate of practical completion (CPC). On 31 January, 2005, Puan Puteh Kamariah Bt Mohamad signed the CPC as the Project Director as follows:

In accordance with Clause 40 of the Condition of Contract and subject to the completion of any outstanding work and the making good of any defects, imperfections, shrinkages or any other faults whatsoever ( as listed in Appendix A) as required under Clause 46 of the Condition of Contract and which may appear during the Defects Liability Period it is hereby certified that the whole of the Works as mentioned above were satisfactorily completed on 14th January, 2005 and taken into possession on 15 January, 2005 and that the said Defects Liability Period in respects of the said Works began on 15th January, 2005 and will end on 14th January, 2007.

We urge the Works Minister to investigate immediately whether the whole of the works has been completed satisfactorily. What is his criteria for the issuance of the CPC?