Audit Dept flags continued delays, RM514m in unauthorised variation orders on Sabah Pan Borneo Highway
KUALA LUMPUR, Oct 5 — A total of 10 work packages for the Sarawak Pan Borneo Highway (LPB) project have been fully...
On October 5, 2026, the National Audit Department (JAN) released its Laporan Ketua Audit Negara (LKAN) 2/2026 report, highlighting continued delays and RM514 million in unauthorized variation orders for the Sabah Pan Borneo Highway (LPB) project. Although 10 work packages out of 35 have been completed, the remaining 31 projects remain under implementation and are causing significant delays.
The audit also uncovered serious irregularities, including unauthorized variation orders exceeding authorized limits totaling RM513.99 million and delays in utility cost claims totaling RM41.37 million. Additionally, Phase 1 of the Sabah LPB project has experienced delays, with an Extension of Time (EOT) approved until July 21, 2027, extending the completion date from August 13, 2024.
The audit concluded that if these weaknesses are not addressed, the project's objectives, such as providing flood protection and safeguarding areas, will continue to be delayed, increasing the government's financial implications.
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Also reported by 4 other outlets
- Audit Dept flags continued delays, RM514m in unauthorised variation orders on Sabah Pan Borneo Highway malaymail.com
- A-G flags weak execution, violations in Pan Borneo Highway project in Sabah freemalaysiatoday.com
- AG Report: 88pc of Sabah Pan Borneo Highway incomplete after 11 years nst.com.my
- General : Audit Report Flags Weaknesses In Pan Borneo Highway, Flood Mitigation Projects bernama.com
