PENANG, Nov 20 (Bernama) -- The Penang Regional Development Authority (PERDA) today refuted an allegation by Chief Minister Lim Guan Eng that the agency gave priority to the upper class society instead of focusing on its objective of developing the rural community.

Its chairman, Datuk Azhar Ibrahim, said it was in meeting the objective that Perda would develop a 10 hectare site in Sungai Batu, which it had bought for RM20 million, and an area covering six hectares in Teluk Bahang, costing RM16 million, for projects which would benefit rural residents, especially the Bumiputera.

He told Bernama that the proposed development project at Sungai Batu would provide opportunities for Bumiputera to own houses, while the site at Teluk Bahang would be developed for tourism projects.

Azhar said this in response to a statement by Lim two days ago that Perda should focus on development which would benefit the low and medium income earners in line with the agency's objective instead of looking after the interests of the upper class society.

Lim also claimed that Perda had bought two sites at a cheap price and therefore should develop the land for building of houses for the low and medium income earners, instead of building expensive bungalows and hotels, which is said to be the reason for the delay in getting approval for the project.

Azhar said Perda was developing the land not merely for profit, but to help the target group to own houses, as well as provide employment opportunities for local residents.

He said Lim should cease making assumptions and hurling accusations at the agency without first checking the facts, adding that Lim made such accusations in an attempt to cover up the delay by the state government in approving an application for change of land status which the agency submitted more than a year ago.

Azhar said Perda had so far built 8,465 units of various types of houses in Penang and that 4,573 of the units were low cost houses.

It had also built more than 150 houses costing between RM12,000 and RM15,000 which were given free to the poor in Penang.