The Penang government has refuted claims that the Economic Affairs Ministry has taken control of the Penang Development Corporation (PDC).

Chief Minister Chow Kon Yeow, said the PDC was only placed under a ministry that was responsible for monitoring its operations, not taking over its administration.

"Actually, it is not a takeover. The country's administrative system empowers the ministry with a responsibility. In this case, the ministry may only monitor performance, it is not taking over.

"The PDC is under the supervision of only one ministry. It should be noted that PDC like the Penang Hill Corporation has been approved by law. There are laws that control the operations and role of a corporation," he told reporters after attending the launching of the Penang Hill lower station (Third Phase) by Finance Minister Lim Guan Eng today.

Gerakan deputy president Oh Tong Keong in a statement today described the state government as having no power as it allowed the central government through the Economic Affairs Ministry to take over PDC.

Oh said that the move (by the ministry) showed that the state government was seemingly ignoring the interests of the people in the state.

Asked whether his side had been informed of the matter, Chow, who is also PDC chairperson, said he had not received any information but only knew it through the media.

"We have not received anything other than the news announcement, but we will still continue to operate." I do not think it is a takeover as such but putting it under the ministry's responsibility ... it is just monitoring more than administration,” he reiterated.

The PDC was established on Nov 17,1969. It is a leading development agency of the Penang state government responsible for spearheading socio-economic growth, creating employment opportunities and improving the quality of life of Penang residents.

- Bernama