World · Malaysia Bureau
Malaysia's Attorney-General flags governance lapses in Sabah highway project
The Pan Borneo Highway project in Sabah has been flagged for significant execution weaknesses, including variation orders exceeding authorised limits and work starting before environmental approvals were finalised.
LSN Malaysia ·
Malaysia's Attorney-General has identified serious governance and compliance issues in the Pan Borneo Highway project in Sabah, raising concerns about project management and adherence to regulatory procedures.
Variation orders totalling RM513.99 million were approved beyond the authorised approval thresholds, according to findings released by the Attorney-General's office. These additional costs represent a significant deviation from the original project scope and budget parameters.
The audit also revealed that 19 work packages commenced operations before their respective Environmental Impact Assessment reports had received formal approval. This breach of environmental safeguarding procedures represents a fundamental departure from required regulatory compliance in major infrastructure projects.
The Pan Borneo Highway, a major infrastructure initiative spanning Sabah and Sarawak, is designed to improve connectivity across Borneo. The identified lapses underscore ongoing challenges in project execution and oversight within Malaysia's infrastructure development programmes.
The Attorney-General's findings suggest the need for strengthened governance frameworks and stricter adherence to approval procedures in large-scale public works projects to prevent similar issues in future infrastructure undertakings.