BAGAN DATUK: The government must find a way to settle RM259.5 million in outstanding payments for rural development projects, particularly those completed by contractors who have yet to be paid.
Deputy Prime Minister Datuk Seri Dr Ahmad Zahid Hamidi, who is also the Rural and Regional Development Minister, said efforts were needed to secure funds for completed projects awaiting payment.
He said progress payments to contractors and suppliers should also be addressed.
“I believe the matter has been explained by my press secretary at the Rural and Regional Development Ministry, and the explanation should be understood by all parties.
“Towards the end of this year, we will identify completed projects for which payments remain outstanding and make efforts to secure funds to settle them.
“The same applies to progress payments for contractors and suppliers,” he told reporters after attending the 2026 Deepavali Santunan Kasih event here today.
Zahid said he had also explained the matter in parliament, where Finance Minister II Datuk Seri Amir Hamzah Azizan had provided a response.
“I hope this matter can be resolved amicably,” he said.
Zahid’s press secretary Fadzmel Fadzil had previously disclosed that RM259.503 million in outstanding interim payments to contractors and compensation to landowners remained unpaid as at Sept 30, involving 112 projects.
He said the arrears stemmed from project commitments made in previous years. Although the projects had been implemented, payments remained outstanding and had to be carried forward to subsequent years.
Fadzmel said the ministry had been forced to use its existing internal allocations to settle the arrears, affecting the implementation of other programmes and projects.
These included the construction and repair of homes for the poor and Orang Asli communities, which involved an allocation of RM200 million.