Public Accounts Committee (PAC) has blamed the inexperienced contractor appointed by Finance Ministry through direct negotiation in July 2006 on the failure to complete Shah Alam Hospital (HSA).

Sunshine Fleet Sdn Bhd (SFSB), a company linked to the Selangor royal family, secured the RM482 million deal to build a maximum 500-bed capacity hospital in Shah Alam within 36 months.

"We are in the opinion that the failure on the completion of the project was caused by the contractor who had no experience in hospital projects," said the PAC report.

As of September 2010, SFSB only managed to complete 27 percent of the project instead of 33 percent scheduled progress of work.

Public Works Department terminated the agreement with the contractor as there was no serious effort to complete the construction despite two warning letters issued by the department...