Finance Ministry Suspends Tenders as Audit Findings Spark Clash Over Rural Projects
New projects following findings have been subjected to a temporary halt in approvals by the Ministry of Finance regarding the selected pre-qualified open tender approach, prompted by Auditor-General’s Report discoveries about public fund governance and procurement processes. The directive has triggered a political dispute over whether rural infrastructure work in Sabah and Sarawak is being halted or merely deferred.
PKR deputy secretary-general Saifuddin Shafi Muhammad challenged Umno secretary-general Asyraf Wajdi Dusuki to produce documentation proving that road, water, and electricity projects have actually been cancelled. Saifuddin stated that deferring the issuance of new letters of acceptance differs from a wholesale cancellation of rural road projects.
The friction follows remarks by Deputy Prime Minister Datuk Seri Dr Ahmad Zahid Hamidi in the Dewan Rakyat regarding rural projects that had not received allocations under the Rural and Regional Development Ministry, prompting questions from opposition lawmakers. Parti Warisan vice-president Datuk Mohd Azis Jamman demanded answers on why spending commitments were allowed to exceed approved allocations before letters of acceptance were issued.
Sabah and Sarawak Funding Increases Amid Budget Debates
Prime Minister Datuk Seri Anwar Ibrahim defended federal spending in the Dewan Rakyat, stating that development allocations for Sabah and Sarawak remain insufficient given vast geographical challenges, prompting funding increases under Budget 2027. Anwar stated that Sabah received the largest development allocation, followed by Sarawak, while emphasizing that the Malaysia Agreement 1963 must be treated as a national commitment.
Federal spending is forecasted to climb to RM459.8 billion in 2027 from a revised RM444.1 billion estimation for 2026, according to Dewan Rakyat announcements by Finance Minister II Datuk Seri Amir Hamzah Azizan. Amir Hamzah stated that overall allocations for Sabah and Sarawak reached RM18.7 billion and RM16.2 billion respectively, while interim special grants increased significantly compared to figures from 2021 and 2022.
Saifuddin noted that Sarawak’s development allocation under the 2026 budget reached RM6 billion, more than doubling the RM2.9 billion recorded in 2022. Meanwhile, Putatan Umno chief Jeffery Nor Mohamed called for the Treasury Secretary and the Rural Development Ministry Secretary to brief members of Parliament to clear up confusion regarding project delays.
Parties Prepare for Melaka State Election Campaign
The dispute over rural development transparency has spilled into the campaign trail ahead of the Melaka state election. Saifuddin agreed with Umno’s call for responsible campaigning by the Barisan Nasional machinery, but criticized opponents for spreading superficial facts.
Frequently Asked Questions About Rural Project Directives
What triggered the Ministry of Finance directive on rural projects?
The Ministry of Finance suspended approvals for selected pre-qualified open tender methods following findings in the Auditor-General’s Report regarding procurement procedures and public fund governance.
How much are Sabah and Sarawak receiving in recent budget allocations?
Under Budget 2027 allocations cited in the Dewan Rakyat, Sabah receives RM18.7 billion and Sarawak receives RM16.2 billion, alongside interim special grants raised to RM1.5 billion each.
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