Kota kinabalu: The Sabah state government, Sabah Development Bank Berhad (SDB), and two other parties have filed a lawsuit against audit firm Ernst and Young PLT, a move the state government says reflects its commitment to transparency in managing Sabah's finances and funds.

According to BERNAMA News Agency, Sabah Deputy Chief Minister II Datuk Seri Masidi Manjun emphasized the state government's dedication to sound financial management and stronger governance. He stated, "I think it is best that we leave the court process to determine the outcome. We have filed our case, and we will await the next court proceedings. But what is certain, symbolically, this shows Sabah's openness. We have nothing to hide. As for SDB, we have sued all creditors, regardless of who they are."

The Deputy Chief Minister, who is also the State Finance Minister, highlighted the importance of this legal move in promoting a culture of better governance. "We are truly serious about ensuring that our state's treasury and finances are carried out properly and transparently," he added during a press conference on the 2026 state-level National Day and Sabah Day celebration.

The lawsuit, filed on August 7, seeks over RM2 billion in damages from Ernst and Young PLT. It concerns the audit of SDB's financial statements for the financial years 2011 to 2022. The legal action was initiated by the Sabah state government, Sabah Chief Minister Datuk Seri Hajiji Noor, SDB, and SDB Corporation Sdn Bhd as plaintiffs.

The plaintiffs allege in their statement of claim that Ernst and Young PLT breached its duty of care during the statutory audits of SDB's financial statements. This alleged breach, they claim, led to the bank's true financial position not being detected earlier.