Penang Umno Youth chief Rafizal Abd Rahim was criticised today for claiming that water surcharges from the Penang Water Supply Corporation go directly into the account of the chief minister's office.

Chief Minister Lim Guan Eng said Rafizal's claim was a "malicious slander" and he urged the youth leader to be ashamed of himself for telling such lies.

Lim said all water revenues are channelled back to the Penang Water Supply Corporation (PBAPP) for projects to improve the state's water supply.