Audit flags construction delays and RM514m in unauthorised orders on Sabah highway

The National Audit Department has identified significant governance issues affecting the Pan Borneo Highway development in Sabah, with 10 work packages remaining incomplete and RM514 million in unauthorised variation orders issued without appropriate authorization.

The audit findings underscore ongoing project management challenges that have plagued the major infrastructure initiative. Variation orders, which modify original contract terms and costs, were issued without following proper procedures or securing necessary approvals from relevant authorities, according to the audit report.

Construction delays have compounded concerns about the project's timeline and budget management. The incomplete work packages represent a substantial portion of the overall development, raising questions about contractor performance and project coordination across multiple phases.

The Pan Borneo Highway represents a major infrastructure commitment spanning both Sabah and Sarawak. The audit department's latest findings add to a growing list of concerns about implementation and financial controls that have previously been flagged by oversight bodies.

Authorities have not yet issued a formal response to the audit findings. The report underscores the need for tighter controls over variation orders and improved project delivery mechanisms to prevent further delays and cost overruns on major public infrastructure projects.