AG Report: 88pc of Sabah Pan Borneo Highway incomplete after 11 years

Only four work packages out of the 35 planned for the Sabah Pan Borneo Highway (LPB) project have been completed since its launch in 2015, according to the Auditor General's report. These four packages constitute just 11.4% of the total 706km stretch and were originally budgeted at RM567 million. The remaining 31 work packages, valued at RM16.319 billion, are yet to be finished.

The report, tabled in Parliament, highlights several issues with the Sabah LPB project, including governance irregularities and inefficiencies in contract administration and financial governance. These issues encompass the approval of Variation Orders exceeding allowable authority limits totaling RM513.99 million, outstanding claims for utility relocation costs of RM41.37 million, and uncollected claims of RM1.78 billion for utility relocation and reinstallation works.

Additionally, the government paid RM32.07 million for a Project Information System that became inaccessible once its agreement period ended. The Sarawak LPB project, in contrast, has shown significantly higher completion rates, with 10 work packages fully completed and one package at 99.9% completion as of March 31.