The deputy rural and regional development minister says the finance ministry's decision to defer issuing the letter of acceptance for the contractors has no timeline.
She said her ministry complied with the finance ministry’s decision to defer all SSTs yet to be issued, including those pending issuance and projects ready to be put out to tender.
“The finance ministry’s decision does not come with a timeline. There is no timeline and an SST is only valid for two to three months.
“This means that if we do not receive further approval from the finance ministry within six months, the ministry would have to cancel the project and restart the process from scratch,” she told the Dewan Rakyat.
Rubiah was responding to Chong Zhemin (PH-Kampar), who asked for confirmation that none of the rural development projects in Sabah had been cancelled but merely deferred because of the suspension of the SST issuance.
She explained that the finance ministry’s reason for deferring the SSTs was it wanted to stabilise the rural and regional development ministry’s finances, particularly its allocations.
“We anticipate that this situation could persist for another two or three years if immediate action is not taken.
“Furthermore, under another guideline used in the 13th Malaysia Plan, projects that cannot be put out to tender or implemented within two years face a high risk of being cancelled,” Rubiah said.
Last month, deputy prime minister Ahmad Zahid Hamidi told the Dewan Rakyat that some projects in Sabah and Sarawak approved for 2026 were shelved on the orders of the rural and regional development ministry’s secretary-general, although funds had been allocated.
Zahid, who is also the rural and regional development minister, said that even SSTs issued to contractors had been cancelled.
However, finance minister II Amir Hamzah Azizan said the government had only postponed issuing new letters until outstanding payments to contractors were settled, maintaining that no letters already issued had been cancelled.
Zahid on Tuesday defended his remarks that the postponement or cancellation of SSTs for the projects were accurate and that he was prepared to produce documentary evidence of the official directive.
RSN Rayer (PH-Jelutong) today demanded that Zahid produce the letter which states the rural development projects in Sabah and Sarawak had been cancelled. - FMT
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