GEORGE TOWN: Chief Minister Lim Guan Eng has admitted that the state government has not been building affordable homes.

However, he said the state had provided low-cost houses through itsPenang Development Corporation (PDC).

“Almost 11,000 low-cost homes had been built by the state government,” he pointed out.

“Some 3,000 were built through the PDC and the rest by the private sector.

“The Federal Government does not build affordable houses by itself, but it’s done through Syarikat Perumahan Negara Bhd (SPNB), the national housing board,” Lim said after attending a Deepavali open house organised by him and the state exco members here yesterday.

Lim was commenting on the Auditor-General’s Report 2010 which stated that not a single low-cost house had been built by the Penang government from 2008 to 2010.

The Report also said that it had gone ahead with plans to set up an Aquaculture Industry Zone (ZIA) despite being advised that the project could pollute the sea.

It said the state Fisheries Department had set up the ZIA, which covers 204ha of mangrove swamp forests at the north of Seberang Prai.

“The state Forestry Department suggested that the area be maintained as developing the aquaculture industry there could pollute the sea water.

“It will also destroy mangrove trees there, which serve as a buffer zone to absorb shocks from waves and tsunamis,” the Report said.

The Report also said that the Federal Government had given an allocation of RM868,000 to the state government to replant mangrove trees throughout Penang, but only 24.5% of the trees survived.

It also said some 37 state officers from five state departments were mistakenly overpaid by a total of RM109,170.

“Some 13 officers were also underpaid by a total of RM13,544,” it said, adding that the errors occurred during staff promotions, bonus payments and other allowances.

“Other incidents of overpayment also occurred due to staff resignations, deaths or absence from duty,” the Report said.

Source: The Star