KUALA LUMPUR: The Rural and Regional Development Ministry (KKDW) said that it will work with the Ministry of Finance (MOF) to find a comprehensive solution to issues related to allocations and ensure all government commitments are properly fulfilled.
Rural and Regional Development Minister's press secretary Fadzmel Fadzil said in a Facebook post on Wednesday (Sept 2) that the move was important to address perceptions that KKDW has made mistakes in its spending or has not managed its allocation responsibly.
He said the matter should not become a dispute between ministries, but rather focus on finding an immediate solution to existing payment commitments.
"KKDW has taken precautionary measures at an early stage. These include reallocating the ministry's internal funds, limiting new commitments, cancelling tenders for projects that significantly impact rural communities, and limiting projects at the pre-implementation stage.
"KKDW also submitted a formal request to the MOF in the second quarter of 2026 to cover deferred payments for ongoing projects,” he said.
Fadzmel also expressed appreciation for the approval and disbursement of RM300mil through a Warrant to Spend (SKB) for the ministry to cover commitments and outstanding payments for projects carried over from previous years.
"However, the amount is still insufficient to meet the full payment requirements currently being faced, as the adjustment will only be made at the end of 2026 based on the ministry's savings or unspent allocation.
"Various consultation sessions and discussions have been held with the MOF and the Public Works Department (JKR). However, some of the issues raised remain pending and have yet to be fully resolved,” he said.
Fadzmel also highlighted the ministry's project commitments, allocations and payments during the Covid-19 pandemic.
"Although the implementation of some projects was affected, Letters of Acceptance (SST) had been issued for certain projects and contractual commitments were established between 2019 and 2021. When the projects resumed, payment claims from contractors were carried forward into subsequent years,” he said.
Fadzmel noted that every application for ministry allocations was submitted to the MOF, while all spending was subject to the government’s financial system, which uses the Integrated Government Financial Management Accounting System (iGFMAS).
He added that every development project or programme also required approval from the Economy Ministry.- Bernama
