PETALING JAYA: The Public Accounts Committee (PAC) will launch an investigation into the management, financial governance and physical implementation of Phase 1 of the Sabah Pan Borneo Highway project.
PAC chairman Mas Ermieyati Samsudin said the committee would summon witnesses from the works ministry, public works department (JKR), JKR’s Sabah branch and other agencies to provide their statements.
"If any indication of wrongdoing, bribery or abuse of power emerges during the proceedings, PAC will not hesitate to refer its findings to the Malaysian Anti-Corruption Commission or police for further action," she said in a statement today.
Mas Ermieyati said the Auditor-General’s (A-G) Report 2/2026 flagged issues such as project delays, inadequate site preparation, design changes and non-compliance with contract terms.
"PAC does not view this as merely a matter of construction delays, but also an issue of governance integrity and government accountability in managing public funds," she said.
Mas Ermieyati said the issues with Phase 1 of the project in Sabah were more apparent when compared with Phase 1 of the project in Sarawak, which is already complete even though both began at roughly the same time.
The A-G's report noted that as of March 31, the Sabah Pan Borneo Highway project remained incomplete 10 years after planning, despite its management changing hands from the delivery partner to the works ministry in September 2019.
The report found that work sites were not fully prepared when the project began, RM144 million in compensation was still unpaid, and 99 structures had yet to be demolished under Phase 1A of the project.
It also found that variation orders worth RM513.99 million were approved beyond the authorised limit, while work on 19 project packages began before their environmental impact assessment reports were approved.
Mas Ermieyati said the project, which comprised 35 work packages spanning 706km, was previously expected to be completed by the end of 2021.
"However, only four work packages have been completed, while the remaining 31, worth RM16.32 billion, are still underway even though the project should have been completed five years ago.
"Even more shockingly, RM10.547 billion, or 94.6% of the RM11.153 billion allocation channelled for the project, has been spent despite the project’s significant delays.
"The completion date has been extended to 2030 due to weaknesses in project planning. The contractual cost of the entire project has risen from RM17.91 billion to RM18.394 billion," she said.