The Treasury has resolved the RM2.1 billion allocation issue involving the Ministry of Rural and Regional Development between 2023 and 2025.
PUTRAJAYA: The issue concerning claims that the Rural and Regional Development Ministry (KKDW) had exceeded its allocation by RM2.1 billion between 2023 and 2025 has been resolved, Deputy Treasury Secretary-General (Policy) Datuk Zamzuri Abdul Aziz said.
“It’s been resolved,” he told reporters after the launch of the Islamic Accounting Standards for Baitulmal, Zakat and Waqf (PPIBZW) and the opening of the PPIBZW 2026 Premier Conference here today.
He was responding to a question on the matter following a call by UMNO Supreme Council member Datuk Razlan Rafii for Treasury Secretary-General Tan Sri Johan Mahmood Merican to explain the issue.
The issue arose following claims that KKDW spent RM1.8 billion in 2023 against an allocation of RM1.1 billion, RM2 billion in 2024 against RM1.3 billion, and RM2.3 billion in 2025 against RM1.6 billion, resulting in a total difference of RM2.1 billion.
On Sept 2, Johan explained that KKDW had made commitments and incurred expenditure exceeding its approved annual allocations for rural road projects.
He said the Finance Ministry (MoF) had worked with KKDW to address the matter, including restructuring the ministry’s allocations based on priorities.
MoF also approved an additional RM300 million allocation for 2026 to help settle outstanding payments to contractors.
