GEORGE TOWN, June 15 — The Penang Water Supply Corporation (PBAPP) dismissed today claims that the state’s water revenue is channeled to the chief minister’s office, saying it goes back to PBAPP.

PBAPP CEO Datuk Jaseni Maidinsa said all water revenue, including the water conservation surcharge, is credited back to PBAPP.

"It was never credited to the chief minister’s office but was credited back to PBAPP and the funds goes back to capital expenditure.

"The revenue is used to upgrade and manage our infrastructure so as to ensure that we do not have to conduct any water rationing exercise in Penang,” he told a press conference at Penang Chief Minister Lim Guan Eng’s office today.

He said PBAPP is under PBA Holdings, which is a public listed company, so the company revenue could not be diverted elsewhere.

"Such things can’t happen, otherwise the CEO can get charged and go to jail,”  he said.

He was responding to allegations by Penang Umno Youth chief Rafizal Abd Rahim that collection of the water conservation surcharge was credited to the chief minister’s office.

Rafizal had demanded that Lim, who is PBA Holdings chairman, reveal how the revenue from the water conservation surcharge was spent.