KUCHING: Details of various issues and challenges in the construction of the Sarawak International Medical Centre (SIMC) in Kota Samarahan will be tabled at the forthcoming State Legislative Assembly (DUN) sitting.
Second Finance Minister Dato Sri Wong Soon Koh told reporters this yesterday, when asked to comment on the unsatisfactory findings on the long overdue project as revealed in The Third Series of the 2014 Auditor-General’s Report released on Monday.
“I will provide a detailed reply on the project including problems arising from the delay as well as the administrative issue between state government and the Ministry of Health,” he said after presenting minor rural (MRP) grants to 27 organisations at his office in Baitulmakmur Building here.
“Things leave a lot to be desired and we need to work hard to make it right because this facility would offer a heart centre and a cancer centre,” added the Local Government and Community Development Minister.
The latest Auditor-General’s Report has revealed that the overall performance of the State Financial Secretary Incorporated (SFC Inc) in the management of the state government investment in SIMC Kota Samarahan was unsatisfactory.
The audit carried out between January and March 2015 found that the objective of implementing the SIMC project by Sarawak Specialist Hospital and Medical Centre Sdn Bhd (SSHMC) — a subsidiary of SSHMC Management and Holdings Sdn Bhd wholly-owned by SFS Inc – had not been achieved and the delay in completing the SIMC project had caused development cost to increase to RM534.38 million.
Other observations included weakness in asset management by SSHMC in SIMC and the Settlement Agreement did not protect the interests of the state government.
SSHMC was established to manage the construction, maintenance and administration of SIMC, which was the state government’s long-term vision to make it a medical centre and tertiary hospital that provides medical services to residents of Sarawak, Sabah, Brunei and Kalimantan as well as a regional medical hub in Southeast Asia.
Though the construction project was approved and launched in 1998, construction work only started in July 2003.
The project was financed through capital injection amounting to RM50.50 million from the state government with the purchase of 50.50 million ordinary shares of RM1 each as the state government’s equity in SSHMC and Istisna’s Serial Bond worth RM425 million, which was issued in September 2004.
The turnkey contract was offered to a consortium of Sesco Engineering Sdn Bhd and Vamed Engineering GmbH & Co. KG on Dec 20, 2002, with a total contract value of RM374.12 million, a total of RM214.11 million with additional Euro36.30 million for specialist medical and IT equipment and consultancy fees amounting to RM18.45 million, which added up to the total development cost of RM390.15 million.
The amount included RM16.02 million as cost of installation of electricity and water supplies.
The contract period was for 36 months, from July 12, 2003 to July 14, 2006.
In 2005, the cost of SIMC’s development project was revised from RM390.15 million to RM453.24 million so as to take into account the cost of expected structural changes, higher cost of Euro and other costs.