PKR: Why RM370M while 250-bed hosp should only cost RM100m?

An extract from Daily Express this morning, as follows:-

PKR: 250-bed hosp only costs RM100m; so why SMC?

Published on: Wednesday, December 02, 2009
http://www.dailyexpress.com.my/news.cfm?NewsID=69201

Kota Kinabalu: Sabah Parti Keadilan Rakyat (PKR) Tuesday voiced concern over the way that taxpayers money was being spent in the acquisition and upgrading of Sabah Medical Centre (SMC) into a government hospital to the tune of RM370 Million.

Its chief, Ahmad Thamrin Jaini said the acquisition of RM280 million and upgrading cost of RM90m was simply too excessive.

"A well known listed government-linked company, KPJ Group, can build a 250-bed hospital for RM100 Million in Kuantan.

"If it is translated to 500 beds, it will only cost RM200 millionÉso, how is that the Federal Government must spend RM370 million for a 455-bed hospital," he said.

Looking at the cost, he said there is a huge excess of RM170 Million.

Ahmad urged the Malaysian Anti Corruption Commission (MACC) to probe the huge discrepancy.

On another note, he said the 20,000 vaccine doses out of 400,000 H1N1 vaccines to be delivered to Sabah, accounted for only five per cent of the total vaccine booked and bought by the Federal Government for the country.

"Is this the sincerity of the Federal Government in caring for the so-called fixed deposit state like Sabah?" he asked.

He questioned how the Health Minister would be able to distribute the first 2,000 vaccines to health workers in Sabah.

He said Brunei with a population of less than half a million bought 300,000 vaccine doses, and yet Sabah with a swelled population of more than 1.5 million was given only 20,000 vaccines.

"This is indeed shameful to the people of Sabah who voted for the Federal Government to power in 2008," he said.

He also questioned why Sabah MPs are quiet over the two issues.

----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

The agreed amount was initially announced by PM on May, 2009 as RM250M, for the as-is building including some equipments; however, the amount was then clarified upward by RM30M to RM280M, one month later, by Minister of health, Datuk Liow Tiong Lai when he visited Kota Kinabalu in July, 2009.

SMC was purchased out of an unusual circumstance of unexpected and critical shortage of beds, and spaces, arising from the main tower building structure failure in Queen Elizabeth hospital.

It's an emergency purchase of an instant medical facility where a slight 'premium' should be expected; however, the quality of the building should be relatively better than those built under the supervision of the public works department as SMC was meant to be used by its original owners who are the doctors of SMC itself.

They were obviously not expecting to sell their ‘new’ facility despite this is their second sales of medical facility to government in five years.

The first SMC, fully commissioned in 1986 and located in Kingfisher Likas area, was sold to government on 3rd March, 2003, and has since been renamed as Hospital for Women and Children in August 2009.

In 2005, the same management of SMC then moved on to build an even better ‘dream’ hospital in Damai Luyang area, and coincidently, it’s subsequently ‘persuaded’ to sell the entire ready-made medical facility to our government again in 2009, with a background of desperation!
(Note: the following URL may help in understanding the history of SMC:-
http://www.sabahmedicalcentre.com/background.cfm)

The declaration of building unsafe for occupation in November 2008 had 'suddenly' caused a shortage of hundreds sick beds which must be made available immediately. It was luckily that SMC was available to 'share' out some of its facilities that the government of the day was able to save its dignity.

The purchase of SMC was considered logical in view of the urgency and awkwardness, and the immediate benefit was that SMC provided a much better working environment for the medical staffs from QEH. The decision to move some of the facilities to SMC had somehow elevated the morale of the workers, and of course, had increased the confidence of the patients, and the public as a result.

The PM was perhaps informed with wrong information, or, there could be some misunderstandings, over the matter of price negotiated. However, we should not be too bogged down with the actual cost of the acquisition; we should rather focus on the more realistic matters like setting the time frame to get all problems resolved for Hospital Queen Elizabeth. It’s the readiness of the necessary infrastructure within 1-2 years time that really matters.

The Ministry Of Health should reply on all the allegations accordingly and conduct regular briefing on its progress, in order to eliminate the public suspicion, and ultimately to regain their confidence in the public medical services.