Extra RM10m and three years to finish hospital

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IT took nearly an extra RM10mil and a delay of more than three years to complete the Pekan Hospital.

According to the Auditor-General’s (A-G) report, the initial cost of the contract amounted to RM86.59mil.

However, the figure increased to RM96.45mil.

This included ex-gratia payments by the Public Works Department (PWD) to compensate for losses claimed by the hired contractor due to various reasons, including an increase of building material prices.

The A-G stated that the PWD should have hastened the contract agreement process so that the terms and specifications of the contract could be enforced to protect the interests of the Govern-ment.

The contract stated that the construction which started on Sept 2, 2000 was to be completed in a span of 30 months or 913 days.

The A-G report said several construction defects were found around the hospital building, which had since been repaired and its cost borne by the contractor.

“Audit checks found that there were seven extensions for the contractor, four of which were approved by the PWD. The Government had to bear an extra cost of RM591,598 due to the extensions given,” the report said.

Other checks by the A-G found numerous instruments in the hospital were still left unused, said the report.

This included pathology, rehabilitation, pharmaceutical and sterilisation tools.

“The list of unused equipment has been identified through a detailed discussion by those involved,” the A-G report stated; saying the PWD has suggested that the unused instruments to be given to hospitals that need it.

The A-G concluded in its report saying that the numerous problems regarding the project is caused by the incompetency and carelessness on the those managing and supervising the construction.

“This has caused the Government to face losses that could have been avoided,” the report added.