In its findings on Phase 1 of the Sabah Pan Borneo Highway (LPB) project, the 2026 Auditor-General’s Report flagged major issues surrounding the project. These include project delays, cost increases, weaknesses in planning and non-compliance with regulations and guidelines.
The Series 2/2026 report indicated that progress on Phase 1 remained significantly behind, with only four of the 35 work packages, or 11.4%, completed at a cost of RM567 million, while the remaining 31 work packages -valued at RM16.319 billion – were still under implementation. Of these, nine have been classified as sick projects and 13 were behind schedule.
Following the release of the report, the works ministry (KKR) said it is taking seriously the findings in the report and will use them to strengthen project delivery as well as the implementation of other federal government development projects, as Bernama reports.
