'You fight, we suffer': Sabah MP demands accountability over rural road projects row

PARLIAMENT | A Sabah MP has demanded to know why no action has been taken on an inter-ministry dispute concerning rural road projects dating back to 2023.

The Finance Ministry and Rural and Regional Development Ministry, led by Prime Minister Anwar Ibrahim and Deputy Prime Minister Ahmad Zahid Hamidi respectively, have been embroiled in a dispute over the latter’s alleged overspending linked to the projects.

Isnaraissah Munirah Majilis (Warisan-Kota Belud) questioned why the Treasury had allowed the problems to persist for three years before they recently erupted into a public disagreement over whether projects in Sabah and Sarawak had been cancelled or merely deferred.

“You are fighting among yourselves, but we are the ones who become the victims,” she told the Dewan Rakyat during committee-stage debates on Budget 2027 today.

Isnaraissah said she had refrained from commenting on the controversy over the past two weeks because she wanted to hear explanations from all sides.

“One side says the projects have been cancelled, while the other says they have merely been deferred.

“Why is this only being raised now? It has been three years!” she said.

Isnaraissah was referring to the Finance Ministry's explanation last Thursday that the Rural and Regional Development Ministry had made financial commitments and incurred expenditure exceeding its original allocations since 2023.

She noted that the ministry had cited Treasury Instructions AP10 and AP54, as well as Treasury Circular PB12, which outline the responsibilities of controlling officers.

“What is the purpose of Treasury financial controls when the Treasury itself is responsible for controlling the allocations of every ministry?

“Why has no action been taken against the officers who allowed this issue to drag on? At the Finance Ministry, at the Rural and Regional Development Ministry, where is your action?" she asked.

The funding spat also emerged against the backdrop of souring ties between the Pakatan Harapan and BN ruling coalitions, which Anwar and Zahid also lead respectively.

READ MORE: Funding spat brews between Zahid's and Anwar's ministries

Who has the authority?

Isnaraissah also questioned who had the authority to postpone or cancel development projects after Parliament had approved the relevant budget allocations.

“Every year, this House approves the budget, head by head, item by item.

“When Parliament has approved a project, who has the authority to defer it? Who has the authority to cancel it? Under what powers?” she asked.

She said rural communities had been waiting for infrastructure projects to proceed, with tenders already conducted and some contractors having received letters of acceptance.

The MP demanded a breakdown of outstanding payments for projects under the 11th and 12th Malaysia Plans, as well as the Rural and Regional Development Ministry’s actual allocations and expenditure between 2023 and 2026.

She also sought a list of projects whose letters of acceptance had been cancelled or deferred, categorised by state, parliamentary constituency, contract value, and tender status.

“The Finance Ministry says the projects have been deferred. Deferred until when? I want to know,” she said.

Ministries at odds

The dispute follows conflicting explanations from the Finance Ministry and the Rural and Regional Ministry over instructions to defer the issuance of new letters of acceptance for rural development projects.

Finance Minister II Amir Hamzah Azizan previously said the projects had not been cancelled, explaining that the deferment was necessary to prevent further financial commitments while outstanding payments were being addressed.

However, Fadzmel Fadzil, an aide to Zahid in the Rural and Regional Development Ministry, questioned whether an indefinite postponement effectively amounted to cancellation.

The controversy also prompted Willie Mongin (GPS-Puncak Borneo) to raise concerns in the Dewan Rakyat yesterday after contractors in his constituency reportedly received cancellation letters despite ministerial assurances that the projects had only been deferred.

Isnaraissah today urged the Treasury secretary-general and ministry secretaries-general, in their capacities as controlling officers, to consider the consequences of their decisions beyond financial balances and performance indicators.

“Ministers come and go. Governments may change. But your signatures remain permanently in the official records,” she said.

“Before any decision is made, whether to cut, defer or amend an allocation, assess its overall impact.

“Do not consider merely its effect on the balance sheet or key performance indicators, but also its impact on the people,” the MP said.

She stressed that Sabah, which continued to lag behind in basic infrastructure development, could ill afford further uncertainty over federal projects.

Sarawak MP urges ministers to settle road allocation dispute behind closed doors

Zafrul: No rural road projects cancelled, only new contracts deferred

'Postponed indefinitely' means cancelled, right? Zahid's aide quizzes MOF over rural road projects

Anwar: Differences of opinion between ministries don't mean split in govt

Zahid's ministry to get RM500m from other ministries' savings to cover overspending

DAP MP refers Wee to privileges committee over ministry spending remarks