PAC launches probe into Sabah Pan Borneo Highway after audit reveals delays despite RM10.5b spent

KUALA LUMPUR, Oct 19 — The Public Accounts Committee (PAC) has launched an investigation into the management, financial governance and physical implementation of Phase 1 of the Sabah Pan Borneo Highway project following revelations in the Auditor-General’s Report (LKAN) Series 2/2026.

PAC chairman Datuk Mas Ermieyati Samsudin said that from 2016 to March 31, 2026, RM10.547 billion, or 94.6 per cent of the RM11.153 billion allocation, had been spent, although the project’s physical progress was far behind schedule.

She disclosed that the 706-kilometre (km) project, comprising 35 work packages, was expected to be fully completed by the end of 2021, but only four work packages, or 11.4 per cent, had been completed.

“While the remaining 31 work packages, worth RM16.319 billion, are still being implemented, the project should have been completed five years ago.

“Of these, nine work packages are classified as sick projects, while 13 are behind schedule. Only nine work packages are ahead of schedule,” she told a press conference at the Parliament building today.

Mas Ermieyati said that, due to weaknesses in planning, the project’s completion date had been extended to 2030, while the overall contract cost had increased from RM17.910 billion to RM18.394 billion.

She said the Auditor-General’s Report also revealed that 57 Variation Orders amounting to RM513.99 million had been approved beyond the authorised limits without the approval of the Secretary-General of the Treasury or the Works Ministry’s Procurement Board.

In addition, the projected current cost for the 15 Phase 1A work packages had surged by RM987 million to RM11.323 billion, compared with the original ceiling cost of RM10.336 billion, while interim payments totalling RM163.64 million had been made to contractors and consultants without formal contractual agreements.

“Government advance funds amounting to RM41.37 million for utility works have yet to be recovered from utility companies, despite the six-month deadline following the issuance of the Certificate of Partial Completion (CPC) having passed,” she said.

The audit report also revealed that 19 work packages had commenced before the Environmental Impact Assessment (EIA) report was approved, while 77,299 monitoring data files had been lost due to the ineffective use of the Project Information System.

However, Mas Ermieyati said the PAC took note of a statement by Sabah Deputy Chief Minister I and Works and Utilities Minister Datuk Seri Dr Joachim Gunsalam, who said that the Sabah Pan Borneo Highway Phase 1 packages were being actively constructed.

“The unfinished Sabah Pan Borneo Highway Phase 1 packages are now being actively constructed, with some sections recording physical progress of between 90 and 93 per cent. Eight packages covering 179km have been proposed to be opened in stages before the end of this year,” she said.

She said the investigation was also initiated following an official request from the Kota Belud Member of Parliament (MP) and concerns raised by the Sipitang, Beaufort and Balik Pulau MPs during the debate on the Auditor-General’s Report in the Dewan Rakyat on October 7.

Mas Ermieyati said the PAC would summon witnesses from the Works Ministry, the Public Works Department (JKR), including JKR Sabah, and relevant agencies for the investigation proceedings.

“If the PAC proceedings uncover any indications of misconduct, corruption or abuse of power, the committee will not hesitate to refer its findings to the Malaysian Anti-Corruption Commission (MACC) and the Royal Malaysia Police (PDRM) for further investigation,” she said. — Bernama