KKDW RM2.1 billion overspending issue resolved – Treasury deputy secretary-general
PUTRAJAYA: The issue concerning claims that the Rural and Regional Development Ministry (KKDW) had overspent RM2.1 billion against its allocations between 2023 and 2025 has been resolved, said Treasury deputy secretary-general (Policy) Datuk Zamzuri Abdul Aziz.
PUTRAJAYA: The financial discrepancy involving the Rural and Regional Development Ministry (KKDW) overspending RM2.1 billion on allocations from 2023 to 2025 has been resolved, according to Treasury deputy secretary-general (Policy) Datuk Zamzuri Abdul Aziz. During a press conference following the launch of the Islamic Accounting Standards for Baitulmal, Zakat and Waqf (PPIBZW) programme, Zamzuri addressed reporters' inquiries on the matter.
This response came after Umno Supreme Council member Datuk Razlan Rafii urged Treasury Secretary-General Tan Sri Johan Mahmood Merican to clarify the issue.
The controversy emerged following allegations that KKDW had spent RM1.8 billion in 2023, exceeding its RM1.1 billion allocation, RM2 billion in 2024, surpassing its RM1.3 billion allocation, and RM2.3 billion in 2025, surpassing its RM1.6 billion allocation. This resulted in a cumulative deficit of RM2.1 billion. On September 2, Johan asserted that KKDW had committed to expenditures beyond its approved annual allocations for rural road projects.
He further explained that the Finance Ministry (MoF) was collaborating with KKDW to resolve the issue, which included restructuring the ministry's allocations based on priorities. The MoF also authorized an additional RM300 million allocation for 2026 to assist in settling pending payments to contractors.
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