00:00The Auditor General's report, second series of 2026, has flagged further delays in the Navy's Littoral Combat Ship project and
00:09multiple weaknesses in Sabah's Pan-Borneo Highway.
00:12The National Audit Department said the first Littoral Combat Ship, or LCS-1, could be handed over without complete training
00:19and weapon systems, with five contracts covering weapons and support systems still incomplete.
00:25The biggest concern involves its surface-to-surface missiles, after the supplier's export license was suspended.
00:32If the existing contract cannot proceed, reprocurement alone could take three years.
00:37The Audit added that a new contract lasting as long as the original six-year deal could push missile supply
00:44to December 2035.
00:45As of June 25th, the overall five-ship project was 7.55% behind schedule, while LCS-1 was 13
00:54.88%, or 108 days behind.
00:57In Sabah, the Pan-Borneo Highway remained incomplete, 10 years after planning began, with land compensation and site clearance issues
01:06still unresolved.
01:07Phase 1A had 144 million ringgit in unpaid compensation and 99 structures awaiting demolition, while Phase 1B had 84 million
01:18ringgit outstanding and 3,360 structures remaining.
01:22The Audit also found 513.99 million ringgit invariation orders were approved beyond authorised limits, while 19 project packages began
01:32work before their environmental impact assessments were approved.
01:36Contract management weaknesses also left the government covering 32.95 million ringgit in cost differences, while 164.64 million ringgit
01:46in payments were made irregularly.
01:49In contrast, the Pan-Borneo Highway in Sarawak was nearly complete, with 10 work packages finished and the Lambir package
01:5699.9% done, although the Audit also flagged weaknesses in project management and contract governance.
02:04Adrienne Fernandez, FMT.
