Prime Minister Anwar Ibrahim has instructed the Finance Ministry and the Rural and Regional Development Ministry to discuss and resolve an issue involving funds for rural development projects.
“I told them to settle it amicably,” he said after Friday prayers in Ampang Jaya, referring to the two ministries.
The issue arose after Rural and Regional Development Minister Ahmad Zahid Hamidi expressed frustration on Tuesday over delayed payments to contractors carrying out projects under his ministry.
Zahid, who is also the deputy prime minister, said some contractors had been forced to shut down because of cash flow problems.
He said some contractors were still waiting for payment despite having completed their work and met the required project milestones.
Dispute over delayed contractor payments
Zahid also criticised instances in which approved spending was not carried out while unbudgeted items were paid for.
The following day, Treasury secretary-general Johan Mahmood Merican said contractors handling rural development projects had faced delayed payments because most of this year’s allocation for rural roads had already been spent.
Johan also said Zahid’s ministry had consistently recorded spending above its approved annual allocation for rural road projects in recent years.
His remarks were dismissed by Zahid’s press secretary, Fadzmel Fadzil, who said it was impossible for the ministry to spend more than its approved annual allocation because government financial procedures did not allow arbitrary spending.
Officials trade remarks over spending
Fadzmel also said all expenditures were processed through the government’s Integrated Government Financial Management Accounting System.
His comments subsequently drew a rebuke from Anwar’s press secretary, Tunku Nashrul Abaidah, who told him to check his facts.
Anwar has now instructed the two ministries to discuss the matter and reach an amicable resolution.
