Former finance minister Lim Guan Eng has called for action against Deputy Prime Minister Ahmad Zahid Hamidi and the Rural and Regional Development Ministry’s overspending that exceeded approved allocations, warning that such practices could undermine the country’s financial stability.
The DAP national adviser said action was necessary to deter other ministries from committing similar offences that could jeopardise the country’s coffers and financial position.
“Zahid’s actions were irresponsible as they breached existing financial procedures and regulations, potentially warranting enforcement under the relevant laws.
“What Zahid (above, left) has done directly threatens financial security and economic stability. Imagine how serious and damaging the country’s financial situation would become if all government ministries were to act in the same manner, spending freely without considering whether the country could afford it?” he added in a statement.
Lim also questioned which contractors had benefited from contracts awarded by the Rural and Regional Development Ministry that resulted in spending exceeding approved allocations.
“Were these contractors selected in accordance with the rules? And were the contracts awarded through a transparent, open and accountable process?” he asked.
Lim said Zahid, as deputy prime minister, should set an example by practising thrift and financial prudence rather than doing the opposite.
“Clearly, Zahid allowed spending to exceed the approved allocations without due scrutiny and should provide a full explanation to the Malaysian people,” he added.
Increased spending
The Finance Ministry disclosed that the Rural and Regional Development Ministry’s expenditure in 2023 amounted to RM1.8 billion, against an approved allocation of RM1.1 billion.
In 2024, the ministry spent RM2 billion compared with an allocation of RM1.3 billion, while expenditure in 2025 reached RM2.3 billion against an allocation of RM1.6 billion.
Overall, the Rural and Regional Development Ministry spent RM2.1 billion more than its approved allocations over the three years from 2023 to 2025, when the ministry was under Zahid.
Lim pointed out that a similar issue had previously arisen over support letters issued by ministries other than the Finance Ministry. Such letters have since been prohibited as they could be construed as concealed government guarantees.
“Under the country’s financial laws, only the Finance Ministry is authorised to issue support letters or guarantees. Action was previously taken when the Transport Ministry issued a support letter without the Finance Ministry’s approval,” he noted.
Public spat
Yesterday, Malaysiakini reported that the funding dispute had become the latest source of friction between Pakatan Harapan and BN.
The spat began after Zahid urged the Finance Ministry to expedite funding disbursements, saying contractors who had completed projects were still waiting for payment and some had been forced out of business because of cash-flow problems.
Zahid, who is also Umno president and BN chairperson, said his ministry was being blamed for the delays despite not receiving the funds needed to make the payments.
However, Treasury secretary-general Johan Mahmood Merican disputed the claim, saying the allocation for rural roads had already been fully disbursed and was not subject to any sanctions.
Johan also said Zahid’s ministry had a history of exceeding its budget, with the Finance Ministry having to identify savings from other ministries to cover the additional spending. - Mkini
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