The Finance Ministry today denied that Umno divisional leaders were the real beneficiaries of an additional RM600 million allocation under the Ninth Malaysia Plan (9MP) meant for rural development.

"I have no knowledge about the money being disbursed to Umno divisional leaders," Finance Ministry's parliamentary secretary Dr Hilmi Yahya told the Dewan Rakyat today.

And according to him, the RM600 million were being given out through "normal procedures".

"Prime Minister (and Finance Minister Abdullah Ahmad Badawi) has instructed the money to be disbursed through district (offices), not Umno divisions," Hilmi added.

At this juncture, Mohamed Aziz (BN-Sri Gading) interjected and said: "I am one of the Umno division leaders, but I did not receive the alleged allocation. I support what (Hilmi) said."

The parliamentary secretary was replying to a point raised by Opposition Leader Lim Kit Siang (DAP-Ipoh Timor) during the debate on the Finance Bill 2006.

Lim asked how the RM600 million of government allocation has turn into "Umno allocation" and why the allocation was neither approved by Parliament or cabinet.

On Nov 13, the eve of the Umno general assembly, Abdullah announced that an additional RM600 million has been approved to spearhead development in the rural areas.

The premier had said the additional allocation was meant to add to the RM1.5 billion disbursed under the 9MP for rural development, which he claimed had already ran dry.

Sarawak left out

Government leaders later said the funds would rejuvenate the Class-F contractors while an official letter revealed the money would only be spent in the Peninsular Malaysia and Sabah.

The letter also stated that the money should be spent by year end - approximately in six weeks.

This would result in an estimated RM3 million to be distributed to 191 parliamentary constituencies except for those in Sarawak.

DAP leader Ronnie Liu, in a police report lodged on Nov 27, alleged that public funds were being used to finance the programme through the hands of Umno divisional leaders.

He also claimed the decision for the allocation which was neither approved by Parliament or the cabinet, came from the party and was aimed at bolstering support for the Umno leadership.

Liu argued that since Sarawak was omitted in the programme, the remaining 191 constituencies that would benefit from the extra allocation tallied with the number of Umno divisions in the country. Umno has no presence in Sarawak.

The majority of Umno division leaders "automatically qualify" for Class-F contractor licences, which are exclusively for bumiputeras.