The government has been urged to clarify whether financial constraints or other reasons are behind the alleged delay in releasing nearly RM1 billion in approved allocations for projects under the Ministry of Rural and Regional Development (KKDW).
UMNO Youth chief Datuk Dr Muhammad Akmal Saleh said the allocation involved KKDW projects that had already been planned, budgeted for and awarded to contractors.
He stressed that these were not newly proposed projects, as their allocations had already been presented and approved before contractors began carrying out the work.
“I am approached almost every day by contractors who have carried out work under KKDW. These projects were planned, allocated funding, awarded and are now nearing completion, yet some contractors have still not received payment.
“When this matter was raised with KKDW, the Deputy Prime Minister, who is also the Minister for KKDW, said more than RM1 billion in budget allocations had not been channelled to the ministry.
“This has forced contractors who have completed the work to wait for payment even though the projects had already been planned and funded,” he said in a Facebook post.
Previously, Deputy Prime Minister Datuk Seri Dr Ahmad Zahid Hamidi said he was “angry” over the issue, particularly after some contractors who had completed work and met contractual progress targets continued to face payment delays, including for Rural Roads (JALB) projects.
Muhammad Akmal said the delays had stretched to almost four months, placing contractors who depend on government payments to keep their businesses running under increasing financial pressure.
He claimed some contractors were now facing the possibility of bankruptcy and had been forced to take on debt despite completing the work required under their respective projects.
“Many contractors have already carried out the work but have yet to receive payment, even though the projects had been budgeted for and approved beforehand.
“This has pushed some contractors to the brink of bankruptcy, while others face the risk of having to shut down or being sued after failing to secure payment for completed work,” he said.
Muhammad Akmal subsequently called on Prime Minister and Finance Minister Datuk Seri Anwar Ibrahim to explain why the approved allocations had yet to be channelled to KKDW.
He said a clear explanation was necessary as the delays were ultimately affecting contractors who had already incurred costs to carry out the projects.
“I want to ask, why has the allocation that was already budgeted for not been released? Does the government no longer have sufficient funds, or is there another agenda behind the allocation not being channelled to the ministry?” he questioned
