Penang Chief Minister Lim Guan Eng has brushed off queries on why the state did not spend 'RM362.3 million of the annual budget, as pointed out in the Auditor-General's Report 2011.

His detractors said the state government was not an enterprise and money for the public should be spent to improve their quality of life.

This, despite Lim explaining that only RM23.9 million of the sum allocated was not spent, not RM362.3 million as is stated in the report.

NONE There are two major reasons for the ‘unspent sum' stated in the Auditor-General's Report 2011, Lim said.

One concerned the allocation for the acquisition of the land to build an education hub for the Asian Women Leadership University (AWLU) in Kampung Genting, Balik Pulau.

Lim said the money allocated for the plot acquisition - RM100 million - was not spent after AWLU agreed to build the hub on a state government site in Pondok Upeh.

"That is why the acquisition of the plot in Kampung Genting was cancelled and the RM100 million was saved," Lim told a press conference today.

The other reason for the non-expenditure concerned RM262.3 million allocated to settle the loan for a water project.

He said that this amount did not have to be spent after the state water assets were transferred to the federal government, through Perbadanan Asset Air Bhd (PAAB).

"This is because the federal government wanted to build the Mengkuang Dam and taking over the loan (to build the dam) was a pre-condition for the state government to hand over its water assets to PAAB," Lim explained.

Reward for performing departments

Meanwhile, four Penang government departments that were awarded 'four stars' in the recent auditor-general's report were presented with monetary rewards today.

Lim praised the departments - the Penang Development Corporation, State Finance Department, Penang Islamic Affairs Council and the State Secretariat - for achieving the good marks.

In a simple ceremony at Komtar, Lim handed over cheques for RM10,000 to a representative from each of the departments .

"Next year, those who achieve four stars will be awarded with RM15,000 each. This is an incentive for good work," he added.