PAYMENT for projects undertaken by Public Works Department will be disbursed directly to sub-contractors, without going through the main contractors.

The Decision was made by Prime Minister Datuk Seri Abdullah Ahmad Badawi during a Cabinet meeting recently Works Minister Datuk Seri S. Samy Vellu said yesterday.

He said Abdullah, who is also finance minister, made the decision after considering complaints from sub- contractors who did no receive payment from the main contractors for completed projects.

"However, payments will be made only after the PWD has ascertained that there is an agreement between the main contractor and the sub-contractors.

"This is necessary because many main contractors simply appoint sub-contractors  , and  when PWD disbursed payment to them (main contractors), they do not pay the sub-contractors.

"PWD director-general Datuk Ir Dr Judin Abdul Karim has been instructed to record details of sub- contractors appointed by the main contractors, for all government projects.

"This way, contracts for project will be given only to those main contractors who have lists of sub-contractors working under them," added Samy Vellu.

He was speaking to reporters after handing  over 132 projects under the Ninth Malaysia Plan, which were completed by the ministry, and the launch of a standard contract from to be used by all government agencies in the implementation of government projects.

To enable the PWD to expedite the process of disbursing payment directly to sub-contractors, Samy Vellu said information on the contract price and list of payment would also be obtained from the main contractors.

Earlier in his speech, he said the ministry had completed 132 of the 535 projects, which were allocated to it under the 9 MP.

"With the projects completed it will boost development in the affected areas, as well as create more employment opportunities for the people," said the minister.