Sibu Heritage Centre refurbishment goes over budget by RM1.3mil

THE newly-refurbished Sibu Town Hall, which has been renamed Sibu Heritage Centre, has a cost overrun of more than RM1.3mil.

Sibu Municipal Council (SMC), which owns the property, had budgeted only RM5mil for its refurbishment and upgrading works which began more than two years ago.

The cost overrun has not only added a burden on the council, which has been operating under financial constraints, but also caused a division among the councillors.

Several councillors claimed that SMC was not informed of the cost overrun by the contractor, Unique Wood Holdings Sdn Bhd, until the project was near completion.

“It was not right in the first place that the refurbishment work was not opened for tender,” said a two-term councillor who wished to remain anonymous.

Another councillor said the council must be accountable for taxpayers’ money.

He said that having a cost overrun of more than RM1mil would create a bad image for the council.

Councillor Robert Lau, who fought for the conversion of the abandoned building, said that SMC was not accountable for the cost overrun.

He said it was the contractor’s fault for not working within the budget.

“As far as I can remember, there is no record in our minutes to show the council had approved the additional construction costs,” Lau said.

SMC deputy chairman Daniel Ngieng said there were suggestions to lease the seven units of commercial shoplots, set aside for food and souvenirs shops on the ground floor, to the contractor.

“One of the ways to offset the cost overrun is to lease the commercial shoplots and deduct what the council owes to the contractor from the monthly rental,” Ngieng said.

He said the contractor had the resources and was experienced in operating food outlets.

SMC had been cooperating with the contractor, as in the case of The Ark Cafe and Gallery in Maju Road, which was refurbished and operated the firm.

Lau, however, disagreed with Ngieng.

He said the opportunity to operate the food stalls and other shops should be given to others.

“There are many others in Sibu qualified to rent the shoplots and operate the businesses,” he said.

“I will stand by my word at the full council meeting on Wednesday that it was not right for SMC to pay the unauthorised cost overrun and that the shoplots must be up for open tender.”

The Mini Museum at Sibu Civic Centre will move to the upper floor of Sibu Heritage Centre on August 1. Sibu’s Sarawak Tourism Board office will occupy one of the eight shoplots on the ground floor when it is ready.