The MACC has said that it is "very shocked" that graft charges against Finance Minister Lim Guan Eng and his former landlord Phang Li Koon have been dropped.

"The MACC stresses that this decision was made by the Attorney-General's Chambers and not the MACC," the graft-busters said in a statement today.

Lim was charged in 2016 for allegedly receiving gratification by purchasing a house from Phang at below market value in 2015, when he was the Penang chief minister.

He was also charged with abusing his power as Penang chief minister by re-zoning a plot of land that was eventually acquired by Magnificient Emblem Sdn Bhd, a company linked to Phang, who was charged with abetment.

High Court judge Hadhariah Syed Ismail granted Lim an acquittal today,

The prosecution had applied for a discharge not amounting to an acquittal, leading to counter-arguments from lawyers from the two defendants. 

Lim and his party DAP had repeatedly maintained that the charges against him were trumped up by the previous administration led by Najib Abdul Razak.

When contacted, Attorney-General Tommy Thomas declined to comment on this development. 

On Aug 2, Thomas withdrew himself from the case and handed over prosecution duties to solicitor-general Engku Nor Faizah Engku Ateh and solicitor-general II Zauyah T Loth Khan.