Why did Sarawak buy 49% of Zecon Medicare for RM155 million?

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Sarawak State Government Acquired Stake in Zecon Medicare Amidst Project Delays

The Sarawak state government acquired a 49% equity stake in Zecon Medicare Sdn Bhd for RM155 million, a move that occurred while the Petra Jaya Hospital project, contracted to Zecon Bhd (Zecon Medicare's parent company), was significantly behind schedule. Payments for this stake were made in two tranches: RM31 million in December 2017 and the remaining RM108.5 million in late April 2018, just prior to the 14th general election.
Rationale for Investment Questioned Amidst Project Underperformance

The purchase of Zecon Medicare shares by the Sarawak government has drawn scrutiny, particularly given the state of the Petra Jaya Hospital project. At the time of the equity acquisition, the hospital project was reportedly only about 33% complete, far from its scheduled completion. This substantial delay was attributed by some to a lack of funds and a shortage of manpower, issues known to the state government.
State Government's Awareness of Project Challenges

Despite the known challenges and delays plaguing the Petra Jaya Hospital project, the State Finance Secretary Sarawak proceeded with the RM155 million investment in Zecon Medicare. The contract for the RM495 million hospital project, awarded to Zecon Bhd, was originally slated for completion by November 2016, having commenced in May 2013.
Lack of Public Statement Following Contract Termination

Further questions have been raised due to the absence of an official statement from the state government regarding the share purchase following the federal government's decision to terminate Zecon Bhd's contract for the hospital project. The federal Cabinet had previously agreed in principle to this termination, impacting the future of the hospital's construction.

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Why did Sarawak buy 49% of Zecon Medicare for RM155 million?

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