Audit uncovers major governance lapses in Sabah Pan-Borneo project

The National Audit Department has flagged critical control deficiencies in the implementation of the Pan-Borneo Highway project in Sabah, raising fresh concerns about governance and oversight of the major infrastructure initiative.

Among the key findings, contract variation orders totalling RM513.99 million were approved in excess of established authority thresholds, according to audit records. The variations, which represent significant modifications to project scope and cost, should have been subject to stricter approval procedures but proceeded without proper authorization limits being observed.

The audit also identified that 19 project packages were commenced before environmental impact assessments had received final approval. This sequencing of work ahead of environmental clearance represents a departure from required protocols and raises potential compliance risks.

The Pan-Borneo Highway is a critical infrastructure project spanning Sabah and designed to enhance connectivity and economic development across the state. The audit findings underscore the importance of strengthening internal controls and adherence to established procurement and project management procedures for large-scale government initiatives.

The discovery of these governance gaps comes as authorities continue to emphasize accountability and efficiency in public infrastructure spending across the region.