Penang Chief Minister Lim Guan Eng has chided Utusan Malaysia and other media outlets for allegedly running down the state government by publishing "fake news" about the controversial state undersea tunnel project.

Lim said it seemed clear that BN has used the media to try and paint him and the Penang government in a negative light.

"They have published fake news, have no morals or journalistic ethics and are unprofessional," Lim told a press conference in Komtar today.

"They dabble in slander and lies. I am sure they are very happy with their success because they continue to publish lies and fake news," he added.

He was referring to an Utusan Malaysia report yesterday which stated that Lim's office was closed, amid rumours about his alleged arrest by MACC over the undersea tunnel project.

Utusan said reporters had failed to gain entry to the chief minister's office on the 28th floor of Komtar, and that those who had attempted to do so were halted by security guards.

"We never closed the office; I was still on duty up to the evening. About 4 to 5pm, I had a meeting with Amanah president Mohamed Sabu and PKR secretary-general Saifuddin Nasution on the food bank project," he said.

"My staff also said they did not talk to the media. This report (by Utusan) is untrue," he added.

"When I speak to Mat Sabu or Saifuddin, I can't be having a talk with them in public," he quipped.

Lim said the MACC did not visit his office yesterday evening.

The graft-buster has raided several state agencies and businesses since Tuesday. Two individuals with “Datuk” titles who head companies related to the tunnel have also been remanded.

Lim left Komtar about 6pm yesterday, with DAP leaders and reporters in tow, and headed to the famous Toh Soon Cafe on Campbell Street for coffee and toast.

"Please do not put down the CM's office or the state government with reports like this. There is a campaign to put me in a bad light before the general elections," Lim said.

"I am not surprised that there would be more of such false news, especially during national polls," he added.

Urging Utusan to retract the report, Lim urged the media not to play politics with dirty tactics if they wished to remain a newspaper.

He then criticised another three BN-friendly newspapers - The Star, New Strait Times and Berita Harian - for spinning news on the tunnel project.

"We did not pay a single cent for the Penang tunnel; we only paid RM208 million for work done to obtain EIA (Environmental Impact Assessment) approval for the tree road project.

"Just because you hold media power, does not mean you should abuse it; yes, I am easily bullied because I'm the only non-Malay chief minister in the country,” he said.

"I want to join state exco Chong Eng's campaign on teen bullying because I am one of them (victims)," he jested.