Zahid blasts delayed contractor payments, orders agency to clear backlog

Deputy Prime Minister Dr Ahmad Zahid Hamidi expressed outrage over delayed payments to contractors working on Rural and Regional Development Ministry (KKDW) projects. Zahid, who is also Rural and Regional Development Minister, warned that these delays are threatening business survival across the supply chain. Some contractors, despite completing required work and progress, remain unpaid. The delays have caused severe cash-flow issues, leading to contractor closures and lawsuits from material suppliers and subcontractors.

Zahid noted that the ministry is being blamed for the delays, but the root cause lies elsewhere. Delayed payments affect not only contractors but also suppliers, smaller contractors, workers, and service providers throughout local economic chains. He emphasized that a single delayed payment can have a wider economic impact than its value.

Zahid called for more sensitive handling of the issue and requested relevant parties to pay serious attention. He criticized the implementation of allocations, stating that spending does not always align with approved budgets. He ordered KKDW to minimize new commitments and focus on completing already started projects and obligations.

Additionally, he instructed all divisions, departments, and agencies under KKDW to launch a "Zero Pending Operation" to resolve outstanding issues and projects before the year's end. Each outstanding issue must have a clearly identified responsible person, a deadline, and a clear decision.