Zahid fumes over delayed payments to rural development contractors

Rural and regional development minister Ahmad Zahid Hamidi has expressed displeasure over delayed payments to contractors working on rural development projects. Zahid, who is also deputy prime minister, lamented that some contractors have been forced to close due to cash flow issues. He revealed that these contractors, who are under his ministry, are still awaiting payment even after finishing their work and meeting project milestones.

In a quote from Berita Harian, Zahid stated that such delayed payments impact not only the contractors but also suppliers, smaller contractors, workers, and service providers. He warned that a single outstanding payment could lead to broader economic pressure. While acknowledging fiscal constraints, Zahid called for greater sensitivity from the relevant parties in addressing this issue.

Zahid also criticized situations where approved spending is not carried out while unbudgeted items are paid. He emphasized that what should be paid has not been paid, while what does not need to be paid has been paid. Zahid expressed frustration, stating that he is not angry but rather feeling heated about the situation.

The rural and regional development minister ordered all divisions, departments, and agencies under his ministry to undertake an "Operation Zero Postponement" to clear outstanding matters. Zahid urged his staff to focus on completing existing projects and commitments during the remaining four months of the year, rather than taking on additional new projects.