THE Public Accounts Committee (PAC) will investigate how RM10.547 billion was spent on the Sabah Pan Borneo Highway Phase 1 project, with only four of its 35 work packages completed despite the project being scheduled for completion in 2021.
PAC chairman Datuk Mas Ermieyati Samsudin said the inquiry would examine project management, financial governance and physical progress, including why existing monitoring mechanisms had failed to prevent prolonged delays.
She said the committee would scrutinise how project payments were approved when construction progress on the ground did not correspond with the amount of public funds spent.
PAC will call witnesses from the Works Ministry, the Public Works Department (JKR), including JKR Sabah, as well as other relevant agencies and parties to give evidence.
“PAC will not hesitate to refer its findings to the Malaysian Anti-Corruption Commission (MACC) and the Royal Malaysia Police for further investigation if the proceedings uncover any indications of misconduct, corruption or abuse of power,” she told a press conference at Parliament today.
Mas Ermieyati said the inquiry followed findings in the Auditor-General’s Report Series 2/2026, which highlighted weaknesses in public fund management, non-compliance with financial rules, excessive expenditure linked to poor project management and significant delays.
The Sabah Pan Borneo Highway Phase 1 project comprises 35 work packages covering 706km and was originally scheduled to be completed within 69 months, with the deadline set for the end of 2021.
However, only four packages, or 11.4%, have been completed, while the remaining 31 packages, valued at RM16.319 billion, are still under implementation.
Of those remaining packages, nine have been classified as sick projects and 13 are behind schedule, while nine are ahead of schedule.
Mas Ermieyati said RM10.547 billion, equivalent to 94.6% of the RM11.153 billion allocated, had been spent between 2016 and March 31 this year despite the project’s physical progress lagging significantly.
The completion deadline has since been extended to 2030, while the overall contract cost has risen to RM18.394 billion from RM17.910 billion.
She said PAC was committed to conducting an independent, transparent and comprehensive inquiry to ensure public funds were spent prudently, responsibly and in accordance with regulations. - October 19, 2026
