The Pan Borneo Highway Sabah project has once again been tainted by controversy, this time involving Package WP33 from Kampung Lumou Baru to Kampung Toupus (Ranau), valued at RM1.3 billion.
Originally awarded by the federal government to MTD Construction Sdn. Bhd., a subsidiary of MTD ACPI Engineering Bhd, the project descended into chaos after being handed over to Gammerlite Sdn. Bhd. – a small, debt-ridden company under the direction of controversial businessman Chin Chen Nyap @ Aaron Chin.
In October 2024, Works Minister Dato’ Sri Alexander Nanta Linggi officiated the Letter of Acceptance (SST) handover ceremony for Pan Borneo Phase 1B work packages, where MTD Construction was among the recipients.
From MTD to Gammerlite to Ireka Corporation – A Suspicious Subcontracting Chain
Official records show:
- Original Contract Value: RM1.3 billion (awarded to MTD Construction).
- Subcontract 1: MTD → Gammerlite Sdn. Bhd.
- Subcontract 2: Gammerlite → Ireka Corporation Bhd (via Shoraka Construction Sdn. Bhd.) worth RM1.07 billion. On 11 October 2024, Ireka announced this project acquisition to Bursa Malaysia.
JKR sources confirmed that the RM1.3 billion awarded to MTD was already the lowest cost bid.
Public criticism soon followed: how could Ireka Corp, a PN17-listed distressed company, secure a RM1.3 billion project for RM1.07 billion from Gammerlite – itself financially crippled? Was this merely a strategy by Gammerlite and Ireka to pump Ireka’s share price?
On 30 July 2025, Bursa Malaysia issued an Unusual Market Activity (UMA) query on Ireka Corporation after its share price and trading volume spiked following the Gammerlite–Ireka deal.
Gammerlite Scams More Companies
Even more shocking, sources alleged that Gammerlite lobbied several other companies to act as sub-subcontractors, creating an unusual chain of layered subcontracting rarely seen in mega government projects. These layers have caused serious delays in execution.
MTD Pulls Out – Gammerlite Cheats Ireka
On 30 June 2025, MTD officially terminated its Project Operation Agreement (POA) with Gammerlite, citing Gammerlite’s failure to secure project financing despite using
MTD’s license to lobby for Pan Borneo.
Shortly after, on 8 July 2025, Gammerlite attempted to escape by issuing a “mutual termination” notice to Ireka Corporation.
But Ireka rejected the move, arguing:
- Over RM10 million in preliminary works had already been completed by Shoraka Construction.
- No compensation was offered by Gammerlite.
- Ireka had already recorded RM1 million in early profit, despite only 1% project progress.
Ireka is now seeking legal advice and preparing to enforce its rights in court.
Meanwhile, insiders claim Gammerlite is renegotiating directly with MTD after securing Chinese financing to continue the project—while planning to cut Ireka off entirely.
The Man Behind Gammerlite – Aaron Chin
Who is Aaron Chin? He is not only a director of Gammerlite but also a shareholder of KyoChon 1991 Malaysia, a struggling F&B franchise. Behind the scenes, Chin has orchestrated the Pan Borneo fiasco.
He is accused of:
- Leveraging influence to lobby the Finance Ministry and Works Ministry for project approval.
- Alongside co-directors Ratina Idris and Johnny John @ Ronnie, scamming Ireka and other local firms with false subcontract promises.
- Siphoning millions from Ireka and several other companies while failing to execute actual works.
- Attempting to sell Package WP33 to Chinese investors after failing to secure local funding.
Aaron Chin holds 30% of KyoChon 1991 Malaysia, a loss-making entity, while simultaneously directing Gammerlite, a Sabah-based construction firm since 2023.
Gammerlite’s Weak Financials
- In 2022, Gammerlite reported losses, only turning a small profit in 2023 (RM18.7m revenue, RM378k net profit).
- Financial charges reveal over 10 bank loans, including a massive RM32.6 million CIMB Bank debt dating back to 2015—still outstanding.
- These figures prove Gammerlite lacks the financial capacity to deliver a RM1.3 billion government project.
- Pairing Gammerlite with Ireka (already a PN17 distressed company with heavy debts) makes the completion of WP33 almost impossible.
Pan Borneo at a Crossroads – The Fate of WP33
The big question: what will happen to Package WP33?
If the dispute between MTD, Gammerlite and Ireka remains unresolved, the 19.5km stretch worth RM1.3 billion risks indefinite delay.
This delay not only burdens the people of Sabah—who have long awaited modern road infrastructure—but also tarnishes the credibility of the federal government, which has consistently promoted Pan Borneo as a symbol of development.
Today, Gammerlite and Aaron Chin stand exposed as corporate conmen, exploiting the Pan Borneo name to lure funding and ensnare local companies like Ireka, only to default on execution.
Other subcontractors scammed by Gammerlite and Aaron Chin must come forward and lodge police reports detailing how they were “pau-ed” (extorted)—money taken, but no project delivered.
