No point crying over spilt milk

We refer to the report "Samy: PISB directors will face the music" (The Star, June 28).

Perangsang International Sdn Bhd (PISB) was the favoured contractor to build the Matrade headquarters. Before the construction started in 1993, the Government decided to shift the site from Changkat Pavilion to Jalan Duta.

Because of this change of site with different soil conditions, PISB was asked to do the building on a design-and-build concept, which was favoured by the Government at that time.

PISB, after negotiations with the Ministry of Finance contracted to do the job for RM167 million.

Basically Malaysia's standard PWD contract requires a contractor to complete the project within a specified time and, if without any satisfactory reason for the delay, PWD would impose a penalty for the late completion.

In addition, PWD can terminate the contract due to undue delay, substandard workmanship or abandonment by the contractor. It can then appoint another contractor to complete the project and any extra cost incurred would have to be borne by the original contractor.

The Matrade building was originally scheduled to complete by 1997. But it was reported that only in 2003 that PWD demanded PISB to pay a "rectification fee" of over RM44 million.

Only now, the Works Minister told Parliament that PISB had defaulted and the past directors of PISB must pay the Government RM64.8 million spent on repairs and a further RM95 million owed as late delivery charges.

In the first place, why the Works Ministry wasted nine years to take PISB to task?

Now that PISB is defunct, isn't it another good example of crying over spilt milk?


1. The above was jointly written by LCC and me.
2. It was published in The Star on 11/07/06. 2008