AG Report: 88pc of Sabah Pan Borneo Highway incomplete after 10 years

KUALA LUMPUR: Only four of 35 work packages under Phase 1 of the Sabah Pan Borneo Highway (LPB) project have been completed since its inception in 2015.

Auditor General Datuk Seri Wan Suraya Wan Mohd Radzi said the four completed packages covered 11.4 per cent of the total 706km stretch and had an original cost of RM567 million.

"The remaining 31 work packages (88.6 per cent), valued at RM16.319 billion, are still in progress.

"Of these ongoing packages, nine have been classified as sick projects, 13 are delayed, and nine are ahead of schedule," she said in a statement on the Auditor General's Report 2/2026, which was tabled in Parliament today.

The report also raised concerns over governance irregularities in the Sabah LPB project, including the approval of Variation Orders (VOs) exceeding allowable authority limits totalling RM513.99 million.

Wan Suraya said claims for utility relocation costs amounting to RM41.37 million for completed packages also remained outstanding.

Meanwhile, the Sarawak LPB project recorded significantly higher completion rates, with 10 work packages fully completed as of March 31, while the remaining package, WP11, stood at 99.9 per cent completion.

"The overall objective of the Sarawak highway project cannot be fully assessed until all work is completely finalised," she said.

Wan Suraya said inefficiencies in contract administration and financial governance in the Sarawak segment included uncollected claims totalling RM1.78 billion for utility relocation and reinstallation works.

"Furthermore, the government paid RM32.07 million for a dedicated Project Information System, which became entirely inaccessible once the agreement period expired," she said.

The Auditor General's Report 2/2026 comprises 15 documents covering government finances and activities.