Zahid fumes over delayed payments to rural development contractors

Rural and regional development minister Ahmad Zahid Hamidi has expressed dissatisfaction over the delayed payments to contractors working on rural development projects, stating that some businesses have been forced to cease operations due to cash flow difficulties. The deputy prime minister clarified that several contractors under his ministry are yet to receive payments despite having completed their work and meeting project milestones.

In a discussion with Berita Harian, Zahid was quoted as saying, "How many contractors have already closed shop? How many have been sued by material suppliers? How many subcontractors have sued the main contractors?" He highlighted that delayed payments impact suppliers, smaller contractors, workers and service providers, emphasizing that a single outstanding payment can lead to broader economic pressure. Zahid acknowledged fiscal constraints but urged the relevant parties to address the issue with greater sensitivity.

The minister criticized situations where approved spending was not fulfilled while discretionary items were paid for, noting that what should be paid has not been paid, while what does not need to be paid has been paid. Zahid stated, "I’m not angry. I’m just hot," and proposed that his ministry should concentrate on completing existing projects and commitments during the remaining four months of the year, rather than taking on new ones.

To tackle outstanding matters, he mandated all divisions, departments and agencies under his ministry to initiate "Operasi Sifar Tertangguh" (Operation Zero Postponement), emphasizing that problems should no longer be carried over from one meeting to another without responsibility for resolving them.