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Datuk Samy Vellu Should Be Sacked As Works Minister If He Refuses To Take Action Against The Contractor Of The RM557.8 million Sultan Ismail Hospital in Johor Baru Press Statement by Lim Guan Eng (Melaka, Thursday): DAP agrees with Prime Minister Datuk Seri Abdullah Ahmad Badawi’s speech yesterday that Malaysia must have good governance and business ethics in the private sector as well as fight corruption to attract foreign investment. However, the government should lead by example to show the private sector how to conduct business with honesty and transparency by taking action against government contractors who fail in their responsibility starting with the RM557.8 million Sultan Ismail Hospital in Johor Baru.  The Prime Minister can only convince the private sector that he means what he says by over-ruling Works Minister Datuk Seri S. Samy Vellu's decision not to take action against MH Projects (M) Sdn Bhd, the turnkey contractor for the RM557.8 million Sultan Ismail Hospital in Johor Baru hospital that was shut down on Sept 26 because of a deadly fungal infection. Such failure to blacklist contractors who compromise on quality and safety is unacceptable and irresponsible.  Malaysians are appalled at the government spending RM 557.8 million to build a hospital that has to be closed after only two months in operation. This scandal has not only caused financial loss to the public but also shame to the country.  Malaysia’s international image has become a joke when the Datuk Seri Samy Vellu said that the seriousness of the flaws that cause a new hospital to close down were "normal in big projects and that we cannot blacklist the contractor or there will be no more contractors to hire". This gives the impression that shoddy and irresponsible contractors who do not complete their contracts or compromise on safety and quality is the norm in Malaysia.   Failure to take action against the contractor would also give rise to speculation and suspicion as to why the Minister and the government is going out of its way to protect the contractor. This runs counter to the premise that mistakes must be punished and compensated. Action against corruption must not only be done, it must be seen to be done.  Datuk Seri Abdullah Badawi must direct Datuk S. Samy Vellu to either take stern action against the contractor to remedy its mistake, withhold full payment of the RM 557.8 million until the 27 months warranty period has expired, pay compensation and blacklist the contractor or sack Datuk S. Samy Vellu as Minister of Works for failing to protect the interests of Malaysians. (7/10/2004) * Lim Guan Eng, DAP Secretary-General