Warisan President Datuk Seri Panglima Mohd Shafie Apdal has challenged the federal government’s decision to scrap the RM4 billion Trans-Sabah Gas Pipeline (TSGP) project, raising concerns about the future of Sabah’s energy security and the apparent disappearance of project funds.

“I am deeply concerned by the federal government’s decision to once again scrap the RM4 billion Trans-Sabah Gas Pipeline (TSGP) project,” Shafie said in Kota Kinabalu on Friday.

“This pipeline was meant to deliver gas from Kimanis to Sandakan and Tawau, securing Sabah’s energy future, creating jobs, and ensuring we benefit from our own natural resources.”

The TSGP project, initiated in 2016, was designed to transport gas from the Sabah Oil and Gas Terminal in Kimanis to the east coast districts of Sandakan and Tawau.

However, since the change of government in 2018, the project has faced multiple setbacks. Economic Affairs Minister Rafizi Ramli announced the latest cancellation on Tuesday, citing unresolved financial and operational issues.

Shafie pointed to the controversy surrounding the project’s finances, noting that 88% of the funds had already been paid out despite only 13% of the work being completed.

“Where did the money go? Who authorised the payments, and was corruption involved?” he asked.

He demanded transparency from the federal government, questioning the management of the RM4 billion expenditure.

“How was the RM4 billion spent, and what remains of it? Who were the key players responsible for managing these funds? Which companies, contractors, and agencies were involved in the project?”

Shafie also took aim at the Gabungan Rakyat Sabah (GRS) government led by Chief Minister Datuk Seri Hajiji Noor, accusing them of making grand announcements without tangible results.

“The Hajiji-led GRS government frequently announces such projects that claim to generate job opportunities and stimulate economic growth, but the reality on the ground tells a different story.”

The Warisan leader also raised concerns about the newly announced RM8.88 billion Oil and Gas Energy Hub Project at Sipitang Oil and Gas Industrial Park.

“Will this project truly benefit Sabahans, or is it just another grand announcement that will fail to materialise?” he asked.

Shafie urged the federal government to outline its alternative plans for meeting Sabah’s energy needs following the pipeline’s cancellation.

“What is the government’s plan to resolve the purpose of the pipeline, which was supposed to improve Sabah’s energy future?”

The RM4.06 billion TSGP project was initially launched under the Barisan Nasional administration in 2016 but was halted in 2018 after a government change revealed financial irregularities.

Payments amounting to 88% of the project value were made despite only 13% of the work being completed.

The project was later revived by the Muhyiddin Yassin administration in 2021 before facing further challenges under the current government.

In 2022, Hajiji proposed discontinuing the 135-MW New East Gas project due to uncompetitive tariffs, suggesting instead that the Southern Link Distribution project be executed in one package under the 12th Malaysia Plan by 2027. – February 21, 2025