Construction of the 7-Storied Health and Nutrition Ward Complex of the Colombo South Teaching Hospital-Kalubowila has been marred with corruption and malpractices causing undue delays under three health ministers.
The construction contract had been awarded to a private company on 14 August 2006 at a value of Rs. 398 million.
Despite being scheduled to be completed by 19 March 2008, the construction remained incomplete even by 31 December 2017, Government Audit inspection revealed.
On the directions of then Health authorities’ action has been taken to build another storey whilst the construction of 7-storied building was in progress as planned
However, a revised engineering estimate had not been prepared, nor had the approval of the Procurement Committee been obtained.
A sum of Rs. 854.04 million had been financed domestically for this project during the period 2007-2017.
As at 31 December 2017, the financial and physical progress thereof had only been Rs. 565.28 million and 66 per cent respectively.
As the contract had not been completed properly, the contractor ‘s contract had been terminated on 06 March 2014 without taking action to recover the advance amounting to Rs. 51 million paid to him.
As the performance bond had expired as at that date, the advance could not be settled therefrom.
Although the consultancy firm had• not involved in the contract during the period from 16 March 2010 to 31 December 2012, consultancy fees amounting to Rs. 14 million had been paid in respect of that period., audit report revealed.
Despite being informed to the Audit that action would be taken to recover the said amount of Rs.14 million from the consultancy fees to be paid in the future, a sum of Rs.27 million had been paid as consultancy fees in the year 2016 without recovering that amount.
The equipment costing Rs.43 million had been retained at the site for 02 years without being used. The items such as, air-conditioners, washing machines, and fire extinguishers purchased by the contractor for the construction of the building, had become obsolete and warranties also expired.
Having obtained the approval of the Cabinet for completion of the rest of the works of the building, the contract valued at Rs. 743 million had been awarded to State Engineering Corporation of Sri Lanka on 31 May 2017
This was approximately to twice the amount of the first estimate
(LI)