KUALA LUMPUR, Sept 4 2026 — DAP Bagan MP and former finance minister Lim Guan Eng today called for action against Deputy Prime Minister Datuk Seri Dr Ahmad Zahid Hamidi and the Rural and Regional Development Ministry (KKDW) for allowing expenditure to exceed approved allocations, warning that similar practices by other ministries could harm the national treasury and financial stability.
In a statement issued here, Lim said Zahid and KKDW should be held to account so that other ministries do not repeat the same breach.
“What was done by Ahmad Zahid Hamidi directly undermines financial security and economic stability,” he said.
Lim said the practice was irresponsible because it violated existing financial procedures and could invite enforcement of related laws.
He asked the public to imagine the damage if every ministry spent as it pleased without regard to whether the country could afford it.
Citing figures previously disclosed by the Finance Ministry, Lim said KKDW spent RM1.8 billion in 2023 against an approved allocation of RM1.1 billion, RM2 billion in 2024 against RM1.3 billion, and RM2.3 billion in 2025 against RM1.6 billion.
He said the excess over the three years from 2023 to 2025, when KKDW was under Zahid, amounted to RM2.1 billion.
“RM2.1 billion is not a small sum, whereas this was not a problem in the years before 2023,” Lim said.
He also compared the issue to letters of support issued by ministries other than the Finance Ministry, which he said had already been banned because they could be treated as hidden government guarantees.
Under the country’s financial laws, only the Finance Ministry is permitted to issue letters of support or guarantees, he said, noting that action had previously been taken when the Transport Ministry issued such a letter without the Finance Ministry’s approval.
Lim further questioned the contractors who benefited from KKDW contracts that led to spending above approved allocations, asking whether they were selected according to the rules and whether the awards were transparent, open and accountable.
As deputy prime minister, Zahid should set an example of prudence and fiscal discipline, not the opposite, Lim said.
“It is clear that Ahmad Zahid Hamidi allowed spending beyond approved allocations without due scrutiny and should give a full explanation to the people of Malaysia,” he said.
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