KUALA LUMPUR (Oct 6): The Eastern Sabah Security Zone (ESSZone) security hub project for the marine police, approved nearly 10 years ago, is still incomplete and now needs an extra RM28.7 million, according to the auditor general’s latest report.
The project, aimed at boosting border and coastal security in high-risk areas like Kudat, Sandakan, Lahad Datu and Tawau, was proposed by the Eastern Sabah Security Command (Esscom) in 2016 and approved under the 11th Malaysia Plan with a RM52.81 million budget. It includes a jetty, relocation building, residential and admin buildings, dining hall, surau and ammunition store.
The project faced major delays due to:
- The contractor’s inability to manage the site’s complexity
- A seven-year delay in seabed surveys
- Poor coordination between Esscom and the Sabah Lands and Surveys Department
Construction began in January 2021 and was supposed to finish by November 2024. However, the contractor (identified as Hartamas Borneo Sdn Bhd from a company search by The Edge) pulled out in August 2023 due to rising costs, an unsuitable landing point and delays in obtaining land approval. By September 2023, only 41% of the work had been completed.
The relocation building was delayed by 254 days and the main building is 8% behind schedule. The project then stalled for one year and eight months, as the Home Ministry sought approval to increase the budget.
In May 2025, the total cost was revised to RM81.51 million (a 54% increase) due to inflation, design changes and added work. To cover this, other security projects in Sabah were cancelled, including the Sabah Phase 2 Maritime Surveillance System and Remote Sensor Site Malawali.
The audit also found that four key project goals were not met:
- Reduce response time to under one hour
- Improve public safety perception by 30%
- Cut cross-border crime by 5% in five years
- Increase patrols by 5%
These delays have disrupted patrols and reduced docking capacity in the high-risk zone.
The auditor general recommended better project management and oversight before restarting the project. The Forward Operations Base (FOB) project on Mabul Island was stalled in September 2023 after the contract was terminated due to poor performance. A new approval to restart was only given in May 2025.
The report warned that project planning, monitoring and coordination must improve before hiring a new contractor to avoid further delays and extra costs. Any new contractor should have proven experience, technical skill and financial stability. It also highlighted a need to appoint a new contractor soon to prevent further damage and rising costs.
Finally, the auditor general urged the government to seek compensation from the terminated contractor to protect public funds.
The Sabah-based Hartamas Borneo, owned by Mohd Eddy Abdullah Chong, 60, and Rozan Mohd Eddy, 36, is currently being wound up.
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