Perdana U confirms dispute with John Hopkins, tie up with another university

Perdana University has confirmed that it is still in dispute with the prestigious Johns Hopkins University over outstanding payments due to the American institution, following today's report of the termination of partnership between both universities.

Its vice-chancellor Professor Datuk Sothi Rachagan, in addressing concerns over the students enrolled with Perdana University Graduate School of Medicine (Pugsom), said the university will ensure that the rights of the students will not be compromised in any way.

"The 80 students enrolled with Pugsom are entitled to their rights and this includes a teach-out on the terms on which they were admitted into the programme. Perdana University will ensure that the rights of the students are not in any way compromised," he said in a statement.

"Pugsom continues to operate seamlessly with both foreign and local faculty with no disruption whatsoever since the departure of the three Johns Hopkins seconded staff.

“Pugsom will continue to exist and grow even further in collaboration with another leading top-tier US University, the identity of which will be announced jointly in due course in accordance with the disclosure terms in the agreement with the new partner that was signed on August 11.”

Sothi revealed that Academic Medical Centre Sdn Bhd (AMC), which owns Perdana, has so far paid a total of US$34.199 million (RM107.9 million) to Johns Hopkins.

"This includes US$5 million (RM15.7 million) that was paid towards the Swami Institute for International Medical Education established at Johns Hopkins University and a further US$29.199 million (RM92.2 million) as part of the affiliation and collaboration agreement."

He added that the last payment  made to the renowned American university was US$2 million (RM6.3 million) on May 7, 2014.

"AMC and Johns Hopkins are in dispute over whether any further sums are payable and the failure of Johns Hopkins to address the many grievances of AMC and Perdana University. The dispute will be resolved in accordance with the Affiliation and Collaboration Agreement with Johns Hopkins," Sothi added.

The Malaysian Insider reported today that Johns Hopkins University School of Medicine pulled out of Pugsom, citing frequent late payments as the reason.

The American medical school said it made the "difficult decision" of ending the partnership in Pugsom – Malaysia’s first private teaching hospital with research facilities – because payments to Johns Hopkins under the contract were often late, adding that payments were 12 months overdue when the partnership was terminated last month.

Johns Hopkins also claimed that since the notice was sent on March 17, it had voluntarily and at its own expense, allowed its faculty to remain teaching at Pugsom until July 31, 2014, to protect interests of the students.

Pugsom, established in 2010 under the initiative of the AMC, offered a four-year medical course in collaboration with John Hopkins, which reportedly cost RM800,000.

When Prime Minister Datuk Seri Najib Razak announced the partnership between Johns Hopkins and Malaysian and American investors in September 2011, he said the school would become a medical research hub in the region.

It was also announced later that up to 50 students per year were to be funded by Public Service Department (PSD) scholarships.

Today, Perdana's Sothi said it had kept all relevant government agencies, the staff and students under Pugsom informed of the developments.

Earlier today, DAP's Lim Guan Eng and Dr Ong Kian Ming called on Putrajaya to step in to protect the interests of Pugsom students and said that the RM2.3 billion Perdana University campus project should be put on hold.

The campus is located at the Malaysia Agro Exposition Park Serdang (MAEPS) in Serdang. It was reported in 2011 that it would move to a 141-acre campus costing RM2.3 billion by 2014.

The new campus, also located in Serdang, is expected have its own 600-bed private teaching hospital.

- TMI