DAP turns the screws on Zahid with MACC report, deepening rift

DAP turns the screws on Zahid with MACC report, deepening rift

Published: Oct 6, 2026 3:07 PM


Staying true to the political maxim that there are no permanent friends or foes, a DAP lawmaker has lodged a report with the MACC against Umno president Ahmad Zahid Hamidi, deepening the fissures between the uneasy allies in the federal government.

Kampar MP Chong Zhemin urged the anti-corruption watchdog to sink its teeth into Zahid’s role in the RM2.1 billion gap between allocations approved and actual expenditure under the Rural Road Programme overseen by the Rural and Regional Development Ministry.

Zahid, who is a deputy prime minister and the rural and regional development minister, has come under scrutiny over the discrepancy.

"An official complaint has now been lodged. MACC must initiate an independent investigation," Chong (below, second from left) said in a press statement today.

He also recalled MACC chief commissioner Abd Halim Aman’s remarks on Oct 1 that the commission only learned about the issue through media reports and would act once an official complaint was received.


Chong pointed out that Finance Ministry figures showed the Rural and Regional Development Ministry 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. The combined difference over the three years amounted to RM2.1 billion.

He also said the ministry’s 2026 allocation was nearly exhausted by June, leaving contractors facing difficulties in receiving payments.

The Finance Ministry subsequently approved an additional RM300 million and began identifying savings from other ministries to cover the Rural and Regional Development Ministry's over-committed obligations.


"If the Rural and Regional Development Ministry did not spend beyond available financial resources, Zahid must explain why contractors who completed their work were not paid, and why the Finance Ministry had to provide an additional RM300 million as well as seek savings from other ministries," Chong said.

"I want the MACC to determine whether contracts and financial commitments were made before adequate funding was legally approved, and whether anyone abused their position to direct or approve them.

"The investigation must also examine the possibility of irregularities in contractor selection, contract awards, payment verifications, and financial records," he added.


Funding dispute, political spat

The dispute erupted in late August when Zahid expressed dissatisfaction over fund disbursements and urged that contractors who had completed work be paid immediately.

On Sept 2, Treasury secretary-general Johan Mahmood Merican (below) replied that no restrictions were imposed on the Rural and Regional Development Ministry's rural road allocations and that the funds had been fully disbursed.

He said payment difficulties arose because the ministry made commitments and spent beyond its annual allocation since 2022, while its 2026 allocation was also nearly exhausted.


Prime Minister Anwar Ibrahim on Sept 4 asked both ministries to resolve the matter through discussions.

On Sept 7, Zahid said his ministry would not spend beyond the allocation approved by the government.

On Sept 30, DAP adviser Lim Guan Eng urged MACC to investigate Zahid, linking it to the agency's action in the UiTM Holdings case.

In response, Zahid's political secretary, Razlan Rafii, accused Lim of political motives ahead of the Malacca state election.

Umno eyes comeback

At Umno’s general assembly last month, Zahid signalled just how far the party’s patience with its role in the Madani government may be wearing thin.


With Umno steadily gravitating towards PAS, he called for the 16th general election to be “expedited”, declaring that the party wants to reclaim the federal government with a fresh mandate rather than remain a junior partner in someone else’s administration.

“The time has come for the general election to be held now. This is not a demand. This is not a hope. This is what the people want,” he said, drawing confidence from BN’s performance in the Johor and Negeri Sembilan elections, where it went head-to-head with Harapan.