Audit Dept flags continued delays, RM514m in unauthorised variation orders on Sabah Pan Borneo Highway

The Auditor General's Report 2/2026 highlights significant challenges in major infrastructure projects in Malaysia, including the Sarawak and Sabah Pan Borneo Highway projects and the Sungai Golok River Basin Development Project.

Contract management and governance issues, such as unexecuted claims and payment inefficiencies, were identified.

The Sabah project notably lags with only a fraction completed, and similar delays are seen in the Golok project due to inadequate planning and coordination.

Despite the completion of the Coastal Conservation Programme, specific delays like those in Terengganu's Kuala Nerus underline the need for improved inter-agency coordination to prevent further setbacks and financial implications.

KUALA LUMPUR, Oct 5 — A total of 10 work packages for the Sarawak Pan Borneo Highway (LPB) project have been fully completed, while another package, WP11, had reached 99.9 per cent completion as of March 31, 2026.

In a statement on the Auditor General’s Report (LKAN) 2/2026 today, the National Audit Department (JAN) said the achievement of the Sarawak LPB project’s objectives could not yet be assessed as the project had not been fully completed.

“The audit revealed weaknesses in contract management and governance. Specifically, claims amounting to RM1.780 billion for utility relocation and reinstatement works had not been executed, while payments totalling RM32.07 million were made for a Project Information System that became inaccessible after the agreement period ended,” the statement said.

LKAN 2/2026, which covers the Federal Government’s Financial Statements for 2025, the activities of Federal Government ministries and departments, as well as the financial statements and activities of state governments, agencies, ministries and departments, and the management of state-owned companies, was tabled in the Dewan Rakyat today.

Meanwhile, Phase 1 of the Sabah LPB project, planned since 2015 and comprising 35 work packages spanning 706 kilometres, remains unfinished after more than a decade.

JAN reported that as of March 31, 2026, only four work packages, or 11.4 per cent, with a total original cost of RM567 million, had been completed, while the remaining 31 work packages, or 88.6 per cent, valued at RM16.319 billion, were still under implementation.

“Of the 31 projects currently under implementation, nine work packages are classified as ‘sick’ projects, 13 are behind schedule, and nine are ahead of schedule.

“Project management issues identified as serious irregularities include the approval of Variation Orders (VO) exceeding authorised limits, amounting to RM513.99 million, and delays in utility cost claims for completed projects totalling RM41.37 million,” the statement said.

LKAN 2/2026 also focuses on several key national infrastructure projects, namely Phase 1 of the Sabah LPB project and the Sarawak LPB project, as well as the Sungai Golok Integrated River Basin Development Project (PLSB) in Kelantan and the Coastal Conservation Programme.

Regarding the PLSB, JAN reported that the project had not been completed in accordance with the stipulated scope, timeline, cost and quality standards.

Phase 1 had experienced delays, with an Extension of Time (EOT) approved until July 21, 2027, superseding the completion date of Aug 13, 2024, stipulated in the supplementary agreement.

Implementation of Phase 2 has also been stalled due to delays in the procurement process.

“The audit identified weaknesses in project planning, inter-agency coordination, scope change management, contract administration, design control, construction execution and the management of consultant appointments.

“These weaknesses resulted in design changes, increased project costs, implementation delays, structural damage to the pump house, the construction of temporary structures and non-compliance with contract requirements,” the statement said.

JAN said if the weaknesses were not comprehensively addressed, the project’s objectives, namely providing flood protection for the Golok River Basin, safeguarding residential and agricultural areas, and strengthening security in high-risk border areas, would continue to be delayed while increasing the government’s financial implications.

Meanwhile, JAN reported that based on 10 completed projects, the nationwide Coastal Conservation Programme had achieved its objectives of protecting vulnerable coastal areas from erosion, reducing coastal flood risks and providing navigational channels.

However, the audit also identified weaknesses in the implementation of the Kuala Nerus Coastal Erosion Control Project in Terengganu, which experienced a 15.7 per cent, or 144-day, delay.

The delay was attributed to a shortage of machinery, a lack of construction activity at Breakwaters No. 1, 2, 3 and 9, as well as delays by the contractor in obtaining Environmental Impact Assessment (EIA) approval for the beach nourishment component.

“To address this issue, coordination between the Public Works Department (JKR) and the Department of Irrigation and Drainage (JPS) must be strengthened so that Breakwaters No. 7 and 8 can be completed immediately, before the Northeast Monsoon season, to prevent the collapse of roads that have already been repaired,” the statement said. —

* Editor’s note: LPB is the abbreviation in Malay for Lebuhraya Pan Borneo (Pan Borneo Highway), LKAN stands for Laporan Ketua Audit Negara (Auditor General’s Report), JAN stands for Jabatan Audit Negara (National Audit Department), JKR stands for Jabatan Kerja Raya (Public Works Department), and JPS stands for Jabatan Pengairan dan Saliran (Department of Irrigation and Drainage).

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审计长报告 2/2026 重点指出马来西亚重大基础设施项目面临重大挑战，包括砂拉越和沙巴泛婆罗洲高速公路项目以及双溪哥乐河流域开发项目。

发现了一些合同管理和治理问题，例如未执行的索赔和支付效率低下。

沙巴项目明显滞后，仅完成了一小部分；由于规划和协调不足，戈洛克项目也出现了类似的延误。

尽管海岸保护计划已经完成，但像登嘉楼州瓜拉尼鲁斯这样的具体延误凸显了加强机构间协调的必要性，以防止进一步的挫折和经济影响。

吉隆坡，10 月 5 日讯——截至 2026 年 3 月 31 日，砂拉越泛婆罗洲高速公路 (LPB) 项目的 10 个工程包已全部完工，而另一个工程包 WP11 已完成 99.9%。

国家审计署 (JAN) 在今天发布的审计长报告 (LKAN) 2/2026 中表示，由于砂拉越地方规划局 (LPB) 项目尚未完全完成，因此还无法评估该项目目标的实现情况。

声明称：“审计发现合同管理和治理方面存在缺陷。具体而言，总额达17.8亿令吉的公用设施搬迁和恢复工程索赔尚未执行，而总额达3207万令吉的项目信息系统款项在协议期结束后无法访问。”

LKAN 2/2026 涵盖联邦政府 2025 年的财务报表、联邦政府各部委和部门的活动，以及州政府、机构、部委和部门的财务报表和活动，以及国有企业的管理，今天已提交下议院。

与此同时，自 2015 年规划以来，沙巴 LPB 项目第一阶段（包括 35 个工作包，总长 706 公里）十多年过去了仍未完工。

JAN报告称，截至2026年3月31日，仅有4个工作包（占11.4%）完成，总原始成本为5.67亿令吉；而其余31个工作包（占88.6%）（价值163.19亿令吉）仍在实施中。

“在目前正在实施的 31 个项目中，有 9 个工作包被列为‘病态’项目，13 个进度落后，9 个进度超前。

声明称：“被认定为严重违规的项目管理问题包括：批准的变更指令 (VO) 超出授权限额，总额达 5.1399 亿令吉；以及已完成项目的公用事业费用索赔延迟，总额达 4137 万令吉。”

LKAN 2/2026 还重点关注几个重要的国家基础设施项目，即沙巴 LPB 项目第一阶段和砂拉越 LPB 项目，以及吉兰丹的双溪哥乐综合流域发展项目 (PLSB) 和沿海保护计划。

关于 PLSB 项目，JAN 报告称该项目未按照规定的范围、时间表、成本和质量标准完成。

第一阶段遭遇延误，工期延长（EOT）已获批准至 2027 年 7 月 21 日，取代了补充协议中规定的 2024 年 8 月 13 日的竣工日期。

由于采购流程延误，第二阶段的实施也陷入停滞。

“审计发现项目规划、机构间协调、范围变更管理、合同管理、设计控制、施工执行和顾问任命管理方面存在缺陷。

声明称：“这些缺陷导致设计变更、项目成本增加、实施延误、泵房结构损坏、临时结构的建造以及不符合合同要求。”

JAN表示，如果这些弱点得不到全面解决，该项目的目标，即为果洛克河流域提供防洪保护、保障居民区和农业区的安全以及加强高风险边境地区的安全，将继续被推迟，同时增加政府的财政负担。

与此同时，JAN报道称，根据已完成的10个项目，全国海岸保护计划已实现其目标，即保护脆弱的沿海地区免受侵蚀，降低沿海洪水风险并提供航道。

然而，审计还发现登嘉楼州瓜拉尼鲁斯海岸侵蚀控制项目的实施存在缺陷，该项目延误了 15.7%，即 144 天。

延误的原因包括机械短缺、1号、2号、3号和9号防波堤缺乏施工活动，以及承包商在获得海滩养护部分的环境影响评估（EIA）批准方面出现延误。

声明称：“为解决这一问题，必须加强公共工程部（JKR）和灌溉排水部（JPS）之间的协调，以便在东北季风季节到来之前立即完成7号和8号防波堤的建设，防止已修复道路发生坍塌。”

*编者注：LPB 是马来语 Lebuhraya Pan Borneo（泛婆罗洲高速公路）的缩写，LKAN 是 Laporan Ketua Audit Negara（审计长报告）的缩写，JAN 是 Jabatan Audit Negara（国家审计部）的缩写，JKR 是 Jabatan Kerja Raya（公共工程部）的缩写，JPS 是 Jabatan Pengairan dan Saliran（审计署）的缩写。灌溉和排水）。

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本周伊始空气质量不佳：蕉赖、布城和约翰塞蒂亚等七个地区空气质量不达标。

审计署表示，政府2025年的借款额减少，但仅收回了92.73亿令吉贷款欠款的5%。

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