Overspending issue resolved, says senior finance ministry official

The issue surrounding the allegation that the rural and regional development ministry spent beyond its allocation has been resolved, according to Treasury deputy secretary general (policy) Zamzuri Abdul Aziz.

“The matter has been resolved,” Zamzuri told reporters after an event at the Putrajaya International Convention Centre here today.

Yesterday, DAP adviser Lim Guan Eng urged the Malaysian Anti-Corruption Commission to investigate the purported over-expenditure of the rural and regional development ministry, helmed by deputy prime minister Ahmad Zahid Hamidi.

Lim said the ministry’s spending from 2023 to 2025 resulted in a cumulative RM2.1 billion in over-expenditure, which he described as no small amount.

He said this was similar to how the Universiti Teknologi Mara (UiTM) management approved a RM260 million injection into UiTM Holdings Sdn Bhd without the finance minister’s approval, as revealed by the Public Accounts Committee.

Zahid’s political secretary, Razlan Rafii, said the allegation that the ministry had overspent was made in bad faith and that Lim’s remarks were politically motivated and aimed at tarnishing the Umno president’s image, in view of the impending Melaka polls.

Razlan also asked how Lim arrived at the RM2.1 billion figure and whether the former finance minister had taken it from a previous statement by the Treasury secretary-general or sought an explanation from the Treasury.

Zahid voiced frustration last month over delayed payments to contractors carrying out ministry projects, saying some were forced to shut down because of cash flow issues. The Umno president said some contractors under his ministry were still waiting to be paid despite completing their work and meeting the required project milestones.

The following day, Treasury secretary-general Johan Mahmood Merican said contractors handling rural development projects faced delayed payments because most of the ministry’s allocation for rural roads this year had already been spent.

Johan said the ministry had consistently exceeded its approved allocation for rural road projects in recent years, with RM1.8 billion spent in 2023 against an approved allocation of RM1.1 billion, RM2 billion in 2024 against RM1.3 billion, and RM2.3 billion in 2025 against RM1.6 billion.

Zahid denied that his ministry spent beyond its approved allocation, but said it sometimes had to pay for expenses not covered by a specific allocation.

Subscribe to our newsletter and get news delivered to your mailbox.