Finance Ministry halts selected pre-qualified tender method for new Rural and Regional Development Ministry projects after audit findings

The Ministry of Finance has halted the Selected Pre-Qualified Open Tender method for new projects by the Ministry of Rural and Regional Development following the Auditor-General's Report findings.

Over-expenditure by the Ministry of Rural and Regional Development exceeded allocations by RM2.1 billion, prompting the Ministry of Finance to take additional control measures.

Funding allocations for rural road projects were revised upwards to address arrears, but the revised amounts were still insufficient to meet the ministry's commitments.

KUALA LUMPUR, Oct 20 — The Ministry of Finance (MOF) has halted approvals for the Ministry of Rural and Regional Development (KKDW) to use the Selected Pre-Qualified Open Tender (TTPKT) method for new projects following findings in the Auditor-General’s Report (LKAN) 2/2025.

The ministry said the TTPKT method was introduced in 2023 as a special procedure to expedite the implementation of high-impact projects for the public and remained in place until June 30, 2025, with several enhancements aimed at strengthening government procurement governance.

“However, the Auditor-General’s Report 2/2025 found that that the implementation of the TTPKT method, including by the KKDW, had not achieved the government’s original objectives,” the ministry said in a written reply published on Parliament’s portal.

The ministry was responding to a question from Lim Guan Eng (PH-Bagan) regarding action against KKDW officials responsible for authorising spending that exceeded allocations by RM2.1 billion between 2023 and 2025, as well as whether the contractors involved had been appointed through open tender.

According to the MOF, contractors for the Rural Road Programme under the KKDW are generally selected through tender processes, including open tender and the TTPKT method.

The ministry said the KKDW had, over the past few years, made financial commitments and incurred expenditure exceeding the original allocations approved in the annual budgets for rural road projects, resulting in arrears and delays in payments to contractors.

In this regard, the MOF said it had taken additional measures, including directing the KKDW to suspend the issuance of new Letters of Acceptance (SST) for rural road projects on September 10.

The ministry said it had also approved an additional RM500 million in expenditure for 2026 through a letter authorising expenditure beyond the approved allocation, after savings were identified in other ministries’ development expenditure.

In addition, the MOF said it had asked the KKDW to prepare projections of funding requirements for rural road projects up to the end of 2026 and for 2027, based on contracts already awarded, to determine the additional allocation needed.

According to the MOF, the original allocations approved for rural road projects under the annual budgets were RM1.09 billion in 2023, RM1.32 billion in 2024 and RM1.57 billion in 2025.

“To reduce payment arrears, the KKDW took steps to reallocate existing development expenditure funds from other projects through an internal Notice of Change (NOC) to meet the funding requirements of rural projects,” it said.

The MOF said the measure resulted in the allocations being revised to RM1.85 billion in 2023, RM2.02 billion in 2024 and RM2.27 billion in 2025, but the amounts were still insufficient to cover the ministry’s project commitments.

To address the issue, the MOF said it had agreed to increase the allocations for rural road projects to RM2.11 billion in 2026 and RM2.27 billion in 2027.

Meanwhile, the ministry said the adjusted allocation for 2026 stood at RM2.40 billion, with RM2 billion in expenditure recorded as at August 31. — Bernama

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根据审计长报告的调查结果，财政部已暂停农村和区域发展部新项目采用的预选资格公开招标方式。

农村及区域发展部超支21亿令吉，促使财政部采取额外管控措施。

为了解决资金拖欠问题，农村道路项目的拨款额度有所上调，但调整后的金额仍然不足以履行该部的承诺。

吉隆坡，10 月 20 日讯——财政部已暂停批准农村及区域发展部在新项目中采用预选资格公开招标（TTPKT）方法，此前审计长报告（LKAN）2/2025 中发现了相关问题。

该部表示，TTPKT 方法于 2023 年推出，作为一项特殊程序，旨在加快实施对公众影响巨大的项目，并将持续到 2025 年 6 月 30 日，期间进行了多项改进，旨在加强政府采购治理。

“然而，审计长报告 2/2025 发现，包括 KKDW 在内的 TTPKT 方法的实施并未实现政府的最初目标，”该部在议会门户网站上发表的书面答复中表示。

该部门是在回应林冠英（希望联盟-峇眼）提出的问题时做出上述表态的。林冠英的质询涉及对负责批准2023年至2025年间超出拨款21亿令吉支出的KKDW官员采取行动，以及相关承包商是否通过公开招标任命。

据财政部称，KKDW 农村道路计划的承包商一般通过招标程序选出，包括公开招标和 TTPKT 方法。

该部表示，过去几年，KKDW在农村道路项目年度预算中批准的原始拨款基础上，做出了财务承诺并产生了支出，导致拖欠和延迟向承包商付款。

财政部表示，已采取额外措施，包括指示国资委于9月10日暂停发放新的农村道路项目验收函（SST）。

该部表示，在其他部门的发展支出中发现节省空间后，已通过一封授权支出的信函批准了2026年额外5亿令吉的支出，该支出超出了已批准的拨款额度。

此外，财政部表示，已要求农村道路建设局根据已授予的合同，编制到 2026 年底和 2027 年农村道路项目资金需求预测，以确定所需的额外拨款。

根据财政部的说法，2023 年、2024 年和 2025 年年度预算中批准的农村道路项目原始拨款分别为 10.9 亿令吉、13.2 亿令吉和 15.7 亿令吉。

“为了减少拖欠款项，KKDW通过内部变更通知（NOC）采取措施，将其他项目的现有发展支出资金重新分配，以满足农村项目的资金需求。”声明中写道。

财政部表示，该措施导致2023年拨款额修订为18.5亿令吉，2024年为20.2亿令吉，2025年为22.7亿令吉，但这些金额仍然不足以支付该部的项目承诺。

为了解决这个问题，财政部表示已同意将农村道路项目的拨款增加到 2026 年的 21.1 亿令吉和 2027 年的 22.7 亿令吉。

与此同时，该部表示，2026年的调整后拨款为24亿令吉，截至8月31日已记录支出20亿令吉。——马新社

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