By Chan Kok Leong (The Edge Malaysia)
KUALA LUMPUR: Two opposition members of parliament (MPs) have called on the works minister to terminate the main contractor for a hospital in Shah Alam's Section 7 to solve the delay in the completion of the project.
Speaking from their office in parliament on Tuesday, April 20, Tony Pua (Petaling Jaya Utara-DAP) and Khalid Samad (Shah Alam-PAS) said the project had already been delayed twice and any further impediments will only raise the cost of the Shah Alam Hospital.
The 300-bed hospital, which had been scheduled for completion in Aug 14, 2010, has been rescheduled for November 2010 and now June 2011.
"The hospital project was first awarded via direct negotiations with Sunshine Fleet Sdn Bhd in 2007 for RM482 million although the project was first mooted to be tendered openly for a budget of RM300 million," said Pua.
"But the project has been embroiled in controversy as its main subcontractor Isyoda (M) Sdn Bhd has been replaced, while the progress of the project has been stalled by various legal suits between Sunshine Fleet and its subcontractors.
"Recent developments have convinced both of us to call upon the Minister of Works Datuk Shaziman Abu Mansor to exercise his powers under the contract with Sunshine Fleet to terminate the contract and award it to others who are able to complete the hospital in the shortest time without compromising its quality or increasing the cost," said Pua.
The MPs claimed that Sunshine Fleet's inability to soundly manage the project and ensure timely payments to its subcontractors places the hospital project in jeopardy and it must be addressed by the works minister.
This project is a case where influential and connected persons are awarded contracts via direct negotiations then transferred entirely to a subcontractor for clean profits, the MPs said.
"This is proven by the letter of award dated Nov 16, 2007 where Isyoda was awarded the 'design & build total subcontract works' for the project amounting to RM451 million, allowing clean profits of RM30 million to Shunshine Fleet," said Pua.
According to a report by the newsportal Malaysiakini on April 4, replacement subcontractor GMH Healthcare Sdn Bhd has filed a suit to wind up Sunshine Fleet for breaches of contract and sums owed to them, said Pua.
In the latest development, a key director and 10% shareholder of the Sunshine Fleet, Putera Azamuddin Shah Abdul Aziz, has also issued a letter of demand and notice of intention to start legal proceedings against the company.
A copy of the lawyer's notice, issued by Rajan Navaratnam Advocates & Solicitors on April 13, 2010 to the two other main shareholders — Tengku Putri Arafiah ibni Sultan Abd Aziz Shah and Tengku Abd Samad Shah ibni Sultan Salahuddin Abdul Aziz Shah — was provided to the media by Pua and Khalid.
In the letter, Putera Azamuddin claimed that he was not informed of two resolutions that were passed in an extraordinary general meeting (EGM) to amend the company's Articles of Association on Feb 1, 2007.
He also claimed to have been removed as a signatory to Sunshine Fleet's Maybank Islamic Bank current account after the convening of the EGM.
On top of that, Putera Azamuddin alleged that he was denied access to the company's management including the company's income and utilisation of company funds. He also claimed to have been "forced to go on leave" by the other two shareholders.
"This has prevented him from having any knowledge with regards the company's operations and funds," the lawyer's letter read.
Putera Azamuddin claimed in the letter that the company's funds had been utilised in "an unfair, unwise and prejudicial manner wherein the funds have not been used to pay the company's creditors or contractors".
He claimed that the management's "acts and conduct were burdensome, harsh and wrongful and lack the degree of probity which he was entitled to expect in the conduct of the company's affairs".
The shareholders have seven days to respond, after which Putera Azamuddin reserved the right to file an application to the court under Section 181 of the Companies Act 1965.
According to information available from the Companies Commission of Malaysia, Putera Azamuddin has 100,000 shares, Tengku Putri Arafiah has 700,000 shares and Tengku Abdul Samad has 200,000 shares in the company.
Courtesy of The Edge Malaysia
-Pejabat YB Khalid Samad-
KUALA LUMPUR: Two opposition members of parliament (MPs) have called on the works minister to terminate the main contractor for a hospital in Shah Alam's Section 7 to solve the delay in the completion of the project.
Speaking from their office in parliament on Tuesday, April 20, Tony Pua (Petaling Jaya Utara-DAP) and Khalid Samad (Shah Alam-PAS) said the project had already been delayed twice and any further impediments will only raise the cost of the Shah Alam Hospital.
The 300-bed hospital, which had been scheduled for completion in Aug 14, 2010, has been rescheduled for November 2010 and now June 2011.
"The hospital project was first awarded via direct negotiations with Sunshine Fleet Sdn Bhd in 2007 for RM482 million although the project was first mooted to be tendered openly for a budget of RM300 million," said Pua.
"But the project has been embroiled in controversy as its main subcontractor Isyoda (M) Sdn Bhd has been replaced, while the progress of the project has been stalled by various legal suits between Sunshine Fleet and its subcontractors.
"Recent developments have convinced both of us to call upon the Minister of Works Datuk Shaziman Abu Mansor to exercise his powers under the contract with Sunshine Fleet to terminate the contract and award it to others who are able to complete the hospital in the shortest time without compromising its quality or increasing the cost," said Pua.
The MPs claimed that Sunshine Fleet's inability to soundly manage the project and ensure timely payments to its subcontractors places the hospital project in jeopardy and it must be addressed by the works minister.
This project is a case where influential and connected persons are awarded contracts via direct negotiations then transferred entirely to a subcontractor for clean profits, the MPs said.
"This is proven by the letter of award dated Nov 16, 2007 where Isyoda was awarded the 'design & build total subcontract works' for the project amounting to RM451 million, allowing clean profits of RM30 million to Shunshine Fleet," said Pua.
According to a report by the newsportal Malaysiakini on April 4, replacement subcontractor GMH Healthcare Sdn Bhd has filed a suit to wind up Sunshine Fleet for breaches of contract and sums owed to them, said Pua.
In the latest development, a key director and 10% shareholder of the Sunshine Fleet, Putera Azamuddin Shah Abdul Aziz, has also issued a letter of demand and notice of intention to start legal proceedings against the company.
A copy of the lawyer's notice, issued by Rajan Navaratnam Advocates & Solicitors on April 13, 2010 to the two other main shareholders — Tengku Putri Arafiah ibni Sultan Abd Aziz Shah and Tengku Abd Samad Shah ibni Sultan Salahuddin Abdul Aziz Shah — was provided to the media by Pua and Khalid.
In the letter, Putera Azamuddin claimed that he was not informed of two resolutions that were passed in an extraordinary general meeting (EGM) to amend the company's Articles of Association on Feb 1, 2007.
He also claimed to have been removed as a signatory to Sunshine Fleet's Maybank Islamic Bank current account after the convening of the EGM.
On top of that, Putera Azamuddin alleged that he was denied access to the company's management including the company's income and utilisation of company funds. He also claimed to have been "forced to go on leave" by the other two shareholders.
"This has prevented him from having any knowledge with regards the company's operations and funds," the lawyer's letter read.
Putera Azamuddin claimed in the letter that the company's funds had been utilised in "an unfair, unwise and prejudicial manner wherein the funds have not been used to pay the company's creditors or contractors".
He claimed that the management's "acts and conduct were burdensome, harsh and wrongful and lack the degree of probity which he was entitled to expect in the conduct of the company's affairs".
The shareholders have seven days to respond, after which Putera Azamuddin reserved the right to file an application to the court under Section 181 of the Companies Act 1965.
According to information available from the Companies Commission of Malaysia, Putera Azamuddin has 100,000 shares, Tengku Putri Arafiah has 700,000 shares and Tengku Abdul Samad has 200,000 shares in the company.
Courtesy of The Edge Malaysia
-Pejabat YB Khalid Samad-
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