Clarify with data, say analysts on Treasury allocation dispute

 Analyst says Ahmad Zahid Hamidi’s press secretary should not be leading the rebuttal against the Treasury over the rural and regional development ministry’s finances.

Zaharuddin Sani Ahmad Sabri (left) says the assertion by Zahid Hamidi’s press secretary, Fadzmel Fadzil, that it was ‘impossible’ for the ministry to spend beyond its allocation was too simplistic and did not adequately address the Treasury’s figures.

PETALING JAYA:

Any disagreement with the Treasury over the rural and regional development ministry’s allocation should be clarified with data rather than assertions, say analysts.

Zaharuddin Sani Ahmad Sabri of Global Asia Consulting said if the ministry believed the figures presented by Treasury secretary-general Johan Mahmood Merican were inaccurate, its secretary-general and finance officials were better placed to explain the discrepancy.

“Why are we hearing so much from the press secretary, but less substantive explanation from the ministry’s professional officials?

“From a good governance perspective, when there is an open dispute over a ministry’s financial figures, the professional officials should be the ones providing the explanation.

“Not a press secretary whose role is primarily communications and politics,” he told FMT.

Zaharuddin said the assertion by Ahmad Zahid Hamidi’s press secretary, Fadzmel Fadzil, that it was “impossible” for the ministry to spend beyond its allocation was too simplistic and did not adequately address the Treasury’s figures.

Zaharuddin said government finances involved more than just the original allocation. Actual expenditure could include supplementary allocations, virements, contractual commitments, liabilities, claims and commitments carried forward from previous years.

Mazlan Che Soh.

Echoing this view, Mazlan Che Soh of Universiti Teknologi Mara (UiTM) said the Treasury’s statement was essentially an administrative explanation of the allocation and expenditure position, and should not be seen as a political attack.

Mazlan said if there were differences in the figures between the ministry and the Treasury, they should be resolved through administrative channels by presenting the respective data.

“If there is a difference in the data, settle it with data, not perception with perception,” he said.

He said an overly defensive response risked turning a technical funding issue into an unnecessary political dispute.

The spat arose after Zahid, the rural and regional development minister, claimed that payments to contractors carrying out rural development projects had been delayed, with some forced to shut down because of cash flow problems.

He said some contractors under his ministry were still waiting to be paid despite completing their work and meeting the required project milestones.

In response, Johan said the delays were due to the fact that most of this year’s allocation for rural road projects had already been spent.

Johan also said Zahid’s ministry had consistently spent more than its approved annual allocation for rural road projects since 2023.

Fadzmel, however, said it was impossible for the ministry to spend more than its approved annual allocation as funding requests were submitted to the Treasury and expenditure processed through Putrajaya’s financial management system.

Early-GE16 call raises the political stakes

Zaharuddin said the “knee-jerk” reaction from Zahid’s press secretary could be interpreted as defensiveness over growing scrutiny of the Umno president’s ministerial record ahead of the next general election (GE16).

He was referring to Zahid’s recent call for GE16 to be held earlier rather than wait for Parliament to be automatically dissolved at the end of next year.

“If this happened once, we could call it an isolated case.

“But when the figures show a pattern in 2023, 2024 and 2025, there are serious questions over the ministry’s planning, monitoring and management of commitments,” Zaharuddin said.

He said the issue was particularly significant for Umno, which had traditionally sought to project itself as a party capable of managing the government and its institutions.

With Zahid now pushing for an early election, Zaharuddin said his performance as a minister would inevitably form part of how voters assessed his leadership credentials.

“I am not saying all of this is Zahid’s personal fault. But the public can ask: if managing one ministry already raises questions over the planning of allocations and commitments, what happens if he is given responsibility for managing the whole government?” he said.

Zaharuddin said Anwar and the finance ministry were in a stronger position to shed some light on the issue as they had both explained the fiscal constraints and secured an additional RM300 million to defray the outstanding payments.

“The RM300 million shows the government is not abandoning the contractors, but every additional allocation still has to come from limited fiscal space,” he added.

Azmi Hassan.

Azmi Hassan of Akademi Nusantara said the ministry’s dispute with the Treasury could itself be part of wider political maneuvering between Zahid and Anwar.

He said this was reflected in Zahid’s call for an early general election, which came as pressure mounted not only over the ministry’s funding issue but also over Tabung Haji and possible developments involving Felda and other current or former BN politicians.

Azmi said the “unusual” public exchange between the Treasury and Zahid’s camp therefore carried political implications beyond a routine administrative disagreement. - FMT