Sort out issues related to rural development funds, PM tells ministries

Prime Minister Anwar Ibrahim instructed two ministries to resolve their disagreements over funds allocated for rural development projects, according to Bernama. The issue arose after Ahmad Zahid Hamidi, the rural and regional development minister and deputy prime minister, expressed dissatisfaction over delayed payments to contractors working on these projects.

Zahid highlighted that some contractors had shut down due to cash flow issues and were still awaiting payment despite completing their work and meeting project milestones. He also criticized instances where approved spending was made while unbudgeted items were paid for.

The following day, Treasury secretary-general Johan Mahmood Merican attributed the delays to the fact that most of the year's allocation for rural roads had already been spent. Merican also claimed that Zahid's ministry had consistently recorded spending above its approved annual allocation for rural road projects in recent years.

However, Zahid's press secretary, Fadzmel Fadzil, refuted these claims, stating that the ministry could not spend more than its approved allocation as the government's financial procedures did not permit such arbitrary spending. All expenditures, Fadzil added, are processed through the government's Integrated Government Financial Management Accounting System.

Zahid's press secretary, Tunku Nashrul Abaidah, rebuked Merican's comments, urging him to verify his facts.