Defence Minister Dr Ahmad Zahid Hamidi has denied that the ministry had overspent by RM6.5 million as reported by the Auditor-General’s Report.

He said the additional expenditure entailed in the purchase of assets was due to fluctuation in foreign exchange and the ministry did not spend more than the price set.

“The agreements made with foreign suppliers were in foreign currencies and not in Ringgit Malaysia.

“When the foreign currencies fluctuated, the payments in Ringgit Malaysia also increased accordingly,” he told reporters after paying courtesy calls on Singapore Prime Minister Lee Hsien Loong and Defence Minister Dr Ng Eng Hen.

Ahmad Zahid is in Singapore to attend the Five Power Defence Arrangements (FPDA) Defence Ministers’ Meeting and the PFDA 40th anniversary tomorrow.

He said there were no spending irregularities as there was a clause that authorised payments in accordance with prevailing foreign exchange.

“This is what was shown in the audit report but certain quarters chose to find mistakes as if malpractices had occurred,” he added.

- Bernama