DAP’s Bagan MP Lim Guan Eng has called for Deputy Prime Minister Datuk Seri Ahmad Zahid Hamidi and the Rural and Regional Development Ministry to face action over RM2.1 billion in spending above approved allocations between 2023 and 2025.
Lim said allowing ministries to spend beyond their approved allocations could set a dangerous precedent, potentially encouraging others to do the same and putting pressure on the national treasury and financial stability.
He described the alleged overspending under Zahid’s leadership as irresponsible and said it appeared to breach existing financial procedures, potentially warranting enforcement under relevant laws.
“What Ahmad Zahid Hamidi has done directly threatens financial security and economic stability,” Lim said in a statement today.
He questioned what could happen if all ministries were allowed to spend without regard for their approved allocations or the government’s ability to finance such expenditure.
Lim also demanded to know which contractors benefited from projects under the Rural and Regional Development Ministry that contributed to the excess spending, and whether they were appointed through transparent, open and accountable processes in accordance with regulations.
Citing Finance Ministry figures, Lim said the ministry spent RM1.8 billion in 2023 despite receiving an approved allocation of RM1.1 billion.
The following year, spending reached RM2 billion against an allocation of RM1.3 billion, while RM2.3 billion was spent in 2025 compared with an approved allocation of RM1.6 billion.
He said the combined overspending amounted to RM2.1 billion over the three-year period, during which Zahid was in charge of the ministry.
Lim described the amount as significant and claimed similar overspending had not been an issue in the years before 2023.
He also raised concerns over the use of support letters, pointing to government restrictions on such letters issued by ministries other than the Finance Ministry.
According to Lim, support letters could effectively amount to hidden government guarantees, while financial laws provide that only the Finance Ministry can issue such letters or guarantees.
He cited previous action involving a support letter issued by the Transport Ministry without Finance Ministry approval as an example.
As deputy prime minister, Lim said Zahid should lead by example by ensuring prudent spending and provide Malaysians with a full explanation for why the Rural and Regional Development Ministry exceeded its approved allocations.
