Finance Ministry halts selected pre-qualified tender method for new Rural and Regional Development Ministry projects after audit findings
KUALA LUMPUR, Oct 20 — The Ministry of Finance (MOF) has halted approvals for the Ministry of Rural and Regional D...
On October 20, the Ministry of Finance (MOF) halted the approval of the Selected Pre-Qualified Open Tender (TTPKT) method for new projects under the Ministry of Rural and Regional Development (KKDW). This decision came after the Auditor-General’s Report (LKAN) 2/2025 found that the TTPKT method did not meet the original objectives of expediting high-impact public projects.
The TTPKT method had been in use since 2023 to expedite project implementation but failed to achieve its intended goals. The MOF responded to questions regarding officials who overspent by RM2.1 billion between 2023 and 2025 and whether the contractors were appointed through open tender. The KKDW had exceeded approved allocations for rural road projects, leading to arrears and delays.
In response, the MOF directed KKDW to suspend new Letters of Acceptance (SST) for rural road projects and approved an additional RM500 million in expenditure for 2026 through an unapproved allocation. The MOF also requested KKDW to project funding requirements for rural road projects up to 2027 and agreed to raise allocations for rural road projects to RM2.11 billion in 2026 and RM2.27 billion in 2027.
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