Lim Guan Eng calls for action against Zahid over RM2.1b Rural Development Ministry overspending

DAP’s Bagan MP Lim Guan Eng has demanded action against Deputy Prime Minister Ahmad Zahid Hamidi and the Rural and Regional Development Ministry following the ministry’s overspending of RM2.1 billion over three years. Lim warned that allowing spending beyond allocated funds could set a dangerous precedent, potentially leading to similar overspending by other ministries and jeopardizing national financial stability.

He deemed Zahid’s actions irresponsible, citing breaches of financial procedures and possible enforcement under relevant laws. Lim emphasized the dire consequences if ministries were permitted unfettered spending without considering the nation’s fiscal capacity. He questioned the beneficiaries of the overspending projects and their selection process, querying whether contracts were awarded transparently and in line with regulations.

Lim pointed out that in 2023, the ministry spent RM1.8 billion against an approved allocation of RM1.1 billion, with spending rising to RM2 billion in 2024 and RM2.3 billion in 2025, totaling RM2.1 billion in excess from 2023 to 2025 under Zahid’s tenure. Lim stressed the magnitude of this overspending, noting that such excess was unprecedented before 2023.

He also criticized the government’s restriction on support letters from ministries other than Finance, which could be viewed as hidden government guarantees. As deputy prime minister, Lim urged Zahid to demonstrate fiscal prudence and provide a comprehensive explanation to the public regarding the ministry’s breach of approved allocations.