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

Prime Minister Anwar Ibrahim addressed the issue of funds for rural development projects between two ministries. He instructed the finance and rural and regional development ministries to settle their differences amicably. The disagreement arose after the rural and regional development minister, Ahmad Zahid Hamidi, expressed frustration over delayed payments to contractors working on projects.

Zahid, who is also deputy prime minister, revealed that some contractors were forced to close due to cash flow issues. He noted that contractors under his ministry were still awaiting payment despite completing work and meeting project milestones. Zahid also criticized instances where approved spending was not carried out, while unbudgeted items were paid for.

Treasury secretary-general Johan Mahmood Merican later explained that the delay was due to most of this year's allocation for rural roads having already been spent. He also mentioned that Zahid's ministry consistently exceeded 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 cannot spend more than its approved allocation as the government's financial procedures do not permit arbitrary spending.

Fadzmel also stated that all expenditures are processed through the Integrated Government Financial Management Accounting System. This response drew a rebuke from Anwar's press secretary, Tunku Nashrul Abaidah, who requested him to verify his facts.