Sabah MP alleges 'multiple levels of subcontracting' in Pan Borneo Highway project

• Datuk Seri Bung Moktar Radin further alleged that the WP32 package of the Pan Borneo Highway was awarded to a company that failed to meet the pre-qualification criteria in the open tender process.

KUALA LUMPUR (Nov 7): A federal lawmaker from Sabah has alleged that one of the packages under the Pan Borneo Highway project in the state involved "multiple levels of subcontracting" and wants Putrajaya to terminate the contractor.

Datuk Seri Bung Moktar Radin (BN-Kota Kinabatangan) (pictured, left) claimed in the Dewan Rakyat that the WP33 package of the highway project, which involves upgrading the road from Kg Lomou Baru to Kg Toupus, was initially awarded by the government to privately held MTD Sdn Bhd.

However, Bung Moktar claimed that the contract was later subcontracted to Gammerlite Sdn Bhd, and subsequently subcontracted again to Main Market-listed Ireka Corp Bhd (KL:IREKA).

"Suddenly, Gammerlite Sdn Bhd announced it had secured the WP33 package and appointed Ireka as its subcontractor. This means there are now two subcontractors. Is the government aware of this? If so, it should immediately terminate MTD's appointment," Bung Moktar said, interjecting Works Minister Datuk Seri Alexander Nanta Linggi's winding-up speech on Budget 2025.

Last month, Ireka announced in a bourse filing that its wholly owned subsidiary Shoraka Construction Sdn Bhd had been awarded the RM1.07 billion subcontract by Gammerlite for the upgrading work. The company highlighted this as a testament to its technical expertise and strong track record in delivering large-scale infrastructure projects.

Bung Moktar further alleged that the WP32 package of the Pan Borneo Highway was awarded to a company that failed to meet the pre-qualification criteria in the open tender process. The WP32 package involves upgrading work for the Telupid to Kg Lumou Baru stretch.

"The company was not even among the eight recommended by the Sabah Public Works Department to the Works Ministry. However, the deputy secretary general was instructed by certain parties to issue a letter of acceptance to this company," Bung Moktar said, describing the act as a "pelanggaran besar" (major violation) of the government's commitment to good governance.

In response, Nanta confirmed that MTD was selected for the WP32 package because it offered the lowest cost. However, he noted that further details should be referred to the Ministry of Finance (MOF), which was responsible for the final selection.

"For the WP32 package, at the Works Ministry level, we submitted the eight companies' recommendations from the Sabah department to the procurement committee, but the final decision was made by MOF,” he added.

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