Sabah sues EY for RM2 billion to show "nothing hidden
Kota Kinabalu: Sabah’s RM2 billion civil suit against Ernst & Young PLT (EY) is deliberate proof the state has “nothing to hide,” said Datuk Seri Masidi Manjun, Deputy Chief Minister II and state finance minister.
Source: Utusan Malaysia · August 20, 2026 at 5:30 AM · AI-assisted report
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KUALA LUMPUR, 20 AUGUST 2026 —
Kota Kinabalu: Sabah’s RM2 billion civil suit against Ernst & Young PLT (EY) is deliberate proof the state has “nothing to hide,” said Datuk Seri Masidi Manjun, Deputy Chief Minister II and state finance minister.
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Speaking after a press briefing in Kota Kinabalu, Masidi said the government would rather let the courts decide the case. “But filing the suit itself shows Sabah’s openness,” he said. “If someone is at fault, we sue. For SDB’s debtors, we sued them all, whoever they are.”
The plaintiffs are the Sabah government, the Chief Minister, Sabah Development Bank Berhad (SDB) and SDB Corporation Sdn Bhd. EY is the sole defendant. The suit claims the auditor failed to meet professional standards while auditing SDB’s financial statements from 2011 to 2022.
Masidi said the state is serious about transparent financial management and better governance of its resources. “We are determined to ensure not only good but transparent management of state funds,” he said. “We hope this sends a message about the urgency of reform.”
The RM2 billion figure matches the prior civil suit filed in the Kuala Lumpur High Court, where the plaintiffs allege EY breached its duty of care during SDB’s statutory audits. The case is now before the courts.
The state’s legal action follows increased scrutiny of public funds and audit failures in Malaysia. Earlier this year regulators fined several financial institutions for governance lapses, but this is the first time a state government has pursued an auditor for alleged misconduct over a decade of financial statements.
The suit does not name any individuals at EY, and the firm has not publicly responded. EY Malaysia declined to comment when contacted. The case is expected to take months to resolve, with the first hearing scheduled for early 2025.
Masidi urged patience while the courts decide. “Let the courts do their work,” he said. “We have acted in good faith to protect public funds.”
Related: Kuala Lumpur