The Penang government today repeated its offer to loan Putrajay RM50 million, which it needed to assist Chinese schools.

The Education Ministry froze the RM50 million budgeted due to shortage of funds.

Penang Chief Minister Lim Guan Eng said the state government has spare cash as it has been running annual surplus budgets since 2008.

"Is the Federal government so poor that for the second year running, it can not even find RM50 million development funds promised for Chinese primary schools last year?

"Something is very wrong and shameful if the federal government cannot even find RM50 million or 0.02 percent out of the entire RM261 billion 2017 budget," Lim said in a statement.

Yesterday MCA president Liow Tiong Lai said he will speak to the prime minister over the matter, after Education Minister Mahdzir Khalid admitted to the funds shortage.

The funds were meant for maintenance and development of Chinese schools.

Mahdzir earlier said the issue is expected to be resolved by last week, if not schools would have to "take what is available".

However, MCA insists that a full disbursement of the RM50 million is made.

Mahdzir's deputy Chong Sin Woon said funds were disbursed last August but it was not the full amount.

Meanwhile, Penang said it managed to maintain a surplus budget due to transparent state land sales amounting to RM658 million since the DAP-led government took over in 2008.

This helped the state reduce debts by 90 percent, Lim said.

"Compared to the different system of selling 3,661 acres by the previous BN state government that only obtained a lesser amount of RM1.06 billion, such as the sale of reclaimed land in Tanjung Pinang at only RM1 per square feet.

"BN sold 36 times more land and yet received less money than the present state government, this is the change from the CAT (Competent, Accountable and Transparent) administration that benefited Penangites!" he said.