Armizan urges PAC to probe impact of PDP termination on Pan Borneo delays


KOTA KINABALU: The Public Accounts Committee (PAC) should expand the scope of its investigation into the Sabah Pan Borneo Highway project to establish the basis and implication of the termination of the Project Delivery Partner (PDP) model in 2019, says Datuk Armizan Mohd Ali.

The Gabungan Rakyat Sabah (GRS) desputy secretary-general said the scrutiny is important to identify factors that contributed to delays in the implementation of the project, particularly for Phases 1A and 1B.

He said the Auditor-General’s Report Series 2 of 2026 should be assessed alongside subsequent policy developments and past decisions that affected the implementation of the project.

The Auditor-General’s Report Series 2/2026 highlighted delays, cost overruns, and governance weaknesses in the implementation of the Sabah Pan Borneo Highway Phase 1 project. As of March 31, 2026, only four of 35 work packages had been completed, despite the project’s original completion target of Dec 31, 2021.

Armizan, who is also Domestic Trade and Cost of Living Minister, said the official replies from the Works Ministry in Parliament on Aug 2, 2022, and Oct 19, 2026, stated that the termination of the PDP model was among the factors contributing to delays in the Pan Borneo Highway Phase 1B project.

“This is not merely a political allegation because the matter has been mentioned twice in official replies by the Works Ministry in Parliament.

“As such, we want the PAC to also examine the basis for the decision to terminate the PDP model in 2019, including the studies and considerations that led to that decision,” he told reporters after officiating the closing ceremony of a programme organised by MyIPO at the Pengalat Secondary School Hall in Papar Sunday (Nov 15).

Armizan said there are four key issues that the PAC should focus on, including the uncertainty surrounding the status of the PDP and contractors following the change of government in May 2018.

According to him, the situation at the time allegedly disrupted work on site for more than a year due to uncertainty over contractors’ appointments and the shift from the PDP model to the conventional implementation method.

He said the process of reappointing contractors also affected costs because of rising material prices and inflation, in addition to challenges brought about by the Covid-19 pandemic.

Armizan also noted that contractor appointments for certain packages were only finalised in 2021 and should be examined to determine their impact on the project implementation schedule.

He said the PAC should also call the contractors involved to provide views on their experiences and challenges faced during the period of uncertainty.

According to Armizan, the investigation should distinguish between Phases 1A and 1B, as both have different implementation statuses and histories regarding contractor appointments.

Armizan said Gabungan Rakyat Sabah (GRS) MPs will submit an official memorandum to the PAC next week, requesting that the scope of the investigation be expanded with clearly defined parameters.

“We are not looking to place blame on any party, but rather to ensure that all policy decisions involving public infrastructure projects are made based on the interests of project implementation and not partisan political considerations.

“When there is a change of government, the priority should be to ensure that projects continue and are accelerated, not delayed to the point where the people bear the consequences,” he added.

Armizan said the implementation of Pan Borneo Phase 1B has been progressing more smoothly due to regular coordination between the Secretary-General of the Works Ministry and the Permanent Secretary of the Sabah Works Ministry to address outstanding issues such as land acquisition and utility relocation.

According to him, this approach has enabled problems to be resolved more quickly through direct discussions, without relying entirely on correspondence between agencies.

 

 

 

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