In a statement, the authorities also said it may take the lab off the list of service providers in future tenders.
BGI gave 28 false-positive results on April 20. As a result, those being tested were hospitalised and their close contacts were isolated unnecessarily.
The government also said if any individual staff members of the lab were found to have breached their codes of conduct, the cases will be referred to the Medical Laboratory Technologists Board for follow-up action.
Many people were forced into quarantine on the strength of the false-positive results.
Some are still in isolation, including one couple now planning to demand compensation from the government.
The husband, using the pseudonym ‘Raymond’, said it feels like they were put in ‘quarantine prison.’
“The one who [apparently] falsely tested positive has been discharged already, but we, who got no illnesses at all, are still here [at the quarantine hotel]. It feels like all of a sudden that our freedom were being taken away,” he complained.