KUCHING: Zecon Bhd announced yesterday that it had on Aug 7 received the notice of termination from the Public Works Department for the construction of 300-bed Petra Jaya Hospital, here.
However, the Sarawak-based company had sought legal advice on the termination as it is of the opinion that the purported termination is wrongful.
“The company will be seeking legal redress including initiating an action to challenge the termination through the courts,” Zecon stated in a filing with Bursa Malaysia yesterday.
On July 5, Health Minister Dr Dzulkefly Ahmad confirmed that the contract for construction work at the Petra Jaya Hospital has been cancelled due to prolonged delay.
“I have already tabled this matter to the Cabinet yesterday (July 4), and my first target would be Petra Jaya Hospital.
“Tun (Dr Mahathir Mohamad) and the Cabinet have been informed, and I will carry out the necessary procedures,” he was quoted as saying.
Dr Dzulkefly had on July 3, highlighted after visiting the 300-bed Petra Jaya Hospital site here that the progress of works of the hospital, which kicked off in May 23, 2013, was only at 35.4 per cent as at June this year.
“I am totally not confident that the contractor, Zecon Medicare Sdn Bhd, will be able to meet the deadline (which has been extended for the second time) by December this year,” he was quoted as saying then.