Deputy Prime Minister Ahmad Zahid Hamidi denied that the Rural and Regional Development Ministry - which he oversees - had spent more than its allocated budget.
This was despite the Finance Ministry issuing a statement detailing how the ministry had burst its budget for the past four years.
"Has any ministry ever spent more than it was allocated? I indirectly answer the Treasury secretary-general's question.
"How much has been allocated? No budget is perfect. How could the ministry possibly spend beyond what was announced in the Budget speech or allocated to us?" Zahid was quoted as saying by the New Straits Times at a ministry event today.
Last week Zahid vented his frustration over funding disbursements during his ministry’s monthly assembly.
Urging the Finance Ministry to expedite payments, Zahid said many contractors have completed their projects and achieved milestones, but are left without payment, and some have been forced out of business by the resultant cash flow issues.
In response, Treasury secretary-general Johan Mahmood Merican said there are no sanctions imposed on the Rural and Regional Development Ministry’s allocation for rural roads, which has already been fully disbursed.
He also painted the Rural and Regional Development Ministry as consistently going over budget, and said the Finance Ministry is working to identify cost savings in other ministries to support the Rural and Regional Development Ministry’s excesses.
Meanwhile, in his speech today Zahid also poked at Communications Minister Fahmi Fadzil who was present at the event.
"I know MCMC has plenty of money. Even so, it must comply with Treasury instructions when spending it.
"Otherwise, Salim Fateh Din (the MCMC chairperson) will lose his job sooner," he said. - Mkini
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