The Auditor-General’s Report 2/2026 has flagged major weaknesses in the management of the Pan Borneo Highway projects in Sarawak and Sabah, including RM1.78 billion in utility relocation and reinstatement claims yet to be carried out in Sarawak, while 31 of Sabah’s 35 Phase 1 work packages remain under construction more than a decade after the project was planned.
According to the National Audit Department, 10 work packages under the Sarawak section had been fully completed as at March 31, 2026, while WP11 was 99.9% complete.
However, the audit found weaknesses in contract management and governance, including the RM1.78 billion in outstanding utility relocation and reinstatement claims.
It also found that RM32.07 million had been paid for the project information system, although the system could no longer be accessed after the agreement expired.
The audit said the overall objectives of the Sarawak project could not yet be assessed as the highway had not been fully completed.
Meanwhile, progress on the Pan Borneo Highway Sabah Phase 1 remained significantly behind, with only four of 35 work packages, or 11.4%, completed as at March 31.
The four completed packages carried an original cost of RM567 million, while the remaining 31 packages, valued at RM16.32 billion, were still under implementation.
Of these, nine were classified as troubled projects, 13 were behind schedule and nine were ahead of schedule.
The Auditor-General also identified serious irregularities involving RM513.99 million in variation orders approved beyond the authorised limit, as well as RM41.37 million in delayed utility cost claims involving completed projects.
