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GEORGE TOWN, Tues:
Penang Chief Minister Lim Guan Eng has refuted the finance ministry's denial that Penang state government had received a reduced allocation for 2007.
Lim said the state government had records to show that the economic planning unit of the prime minister's department slashed the allocation by 51.7 per cent.
The original amount that was allocated to Penang was RM128 million but was reduced to just RM61.8 million on Nov 15 last year, he said.

"These are the facts. The ministry should double check their records. They have denied that the allocation was reduced but they are wrong," he said.
Lim said this when asked to comment on the ministry's denial that the allocation for Penang in 2007 had been reduced. The ministry, through its public relations unit, had issued a statement that the federal government had paid in full the allocation for Penang last year.
It stated that the disbursed amount of RM126.9 million was actually more than the amount paid in 2006, which was RM96.9 million. The ministry stated that it was therefore not true that the state government received a reduced allocation in 2007.

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