KUALA LUMPUR: The Works Ministry is tightening contract management and oversight of the Pan Borneo Highway Sabah project after the Auditor-General identified weaknesses including delays in contract documentation, excessive variation orders and work commencing before environmental approval was obtained.
Works Minister Datuk Seri Alexander Nanta Linggi said the ministry had identified several weaknesses in project implementation that resulted in non-compliance with existing regulations, laws and guidelines.
The Auditor-General’s Report No. 2/2026 identified 13 findings involving the Sabah Phase 1 project, covering delays, project management and compliance issues.
Among the findings were variation orders exceeding prescribed limits without being referred to the Finance Ministry for approval, utility relocation claims involving late-completed work packages, construction commencing before approval of the Environmental Impact Assessment (EIA), delays in completing contract documents and weaknesses in the administration of the project information system.
Nanta said the ministry had responded by strengthening project monitoring and improving the training and capabilities of officers involved in contract management.
“Several weaknesses were identified at the implementation level which resulted in non-compliance with existing regulations, legislation and guidelines,” he said while winding up the audit debate in the Dewan Rakyat today.
He said officers involved in the project had been required to undergo contract management and administration training with the Construction Industry Development Board (CIDB) and the Construction Research Institute of Malaysia (CREAM/CREATE).
They were also given temporary attachments to agencies under the Works Ministry and private companies, including Gamuda Bhd, to strengthen their practical exposure to contract administration.
Nanta said the ministry would also strengthen monitoring of outstanding matters, including the management of outstanding government receivables and claims involving utility relocation costs.
He said the Auditor-General’s findings would serve as a lesson for other federal development projects and help the ministry improve project planning, implementation and contract administration.
“The ministry takes seriously the findings raised in the Auditor-General’s Report and will continue implementing corrective and follow-up measures,” he said.
