Zahid gets 'heated' over contractors' unpaid bills

PUTRAJAYA: Deputy Prime Minister Datuk Seri Dr Ahmad Zahid Hamidi has called on the government to swiftly release approved funds to the Rural and Regional Development Ministry in order to resolve the significant payment delays experienced by its contractors. As the Rural and Regional Development Minister himself, Zahid has expressed his frustration over the reallocation of government money and the introduction of unbudgeted projects, which he believes have disrupted planned programs and left contractors holding the bag.

Several development projects have been slowed down or reshaped due to financial reallocation changes. It is essential that the allocated budgets are paid out, not the other way around. What is due to be paid remains unpaid, while what was never intended to be paid gets funded. Zahid, speaking at the ministry's monthly meeting, emphasized that the Finance Ministry is responsible for disbursing the allocations.

He explained that many contractors have completed their work and met the milestones outlined in their contracts, including those involved in Rural Roads Projects, but are still unpaid. Zahid attributed the delays to bottlenecks in fund disbursement rather than any inefficiency on the ministry's part. He warned that failing to pay contractors could have far-reaching consequences for the wider economy, as numerous contractors have already gone out of business, builders have been sued by their material suppliers, and sub-contractors have taken legal action against their main contractors.

Zahid stressed that proper fiscal management requires not just cutting costs but also honoring commitments to maintain public trust.