Why were RM7 billion flood funds approved without tender?

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RM7 Billion Flood Mitigation Funds Approved Without Tender Due to Direct Negotiation Review

The Finance Ministry has been instructed to halt the disbursement of RM7 billion in funds allocated for flood mitigation projects. This suspension is a direct consequence of Prime Prime Minister Datuk Seri Anwar Ibrahim's order for a comprehensive review of contracts awarded through direct negotiation, aimed at identifying potential procedural irregularities and ensuring greater transparency in the allocation process.
Direct Negotiation Contracts Under Scrutiny

A significant portion of the RM15 billion allocated for flood mitigation projects, specifically RM7 billion, has reportedly been approved and awarded without undergoing the standard tender process. Officials within the Finance Ministry briefed Prime Minister Anwar on this matter, highlighting that these approvals bypassed conventional procurement rules.
Prime Minister Orders Full Review

Prime Minister Anwar Ibrahim, who also oversees the Finance Ministry, explicitly ordered the suspension of fund channeling for these projects. The primary objective of this pause is to conduct a thorough review of contracts that were awarded via direct negotiations. This review is intended to scrutinise for any procedural breaches and to uphold principles of transparency in government expenditure.
Concerns Over Transparency and Procedural Compliance

Anwar expressed his concerns, stating that approvals made contrary to established rules cannot be considered "clean." He indicated that issues can arise when regulations are not adhered to, creating opportunities for potential misuse of funds. The Flood Mitigation Project 2030 was initially announced in October by the former finance minister, Datuk Seri Tengku Zafrul Abdul Aziz, as part of Budget 2023.

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Why were RM7 billion flood funds approved without tender?

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