GEORGE TOWN, July 26 — Local councils should better scrutinise awards for which they are nominated, a Penang exco said today following revelation that two such agencies here received fake awards from a dubious international organisation.

Local government, traffic management and flood mitigation committee chairman Chow Kon Yeow said he hoped the leadership of the local councils would learn a lesson from "this unfortunate episode”.

"The Penang state government expresses regret that the two local councils have been embroiled in a controversy that involved receiving awards and recognitions from a dubious international organisation, as reported in the local media today,” he said in a statement today.

He then reminded the Penang Island City Council (MBPP) and Seberang Perai Municipal Council (MPSP) to focus on delivering their services to the public.

He stressed that both councils have performed well enough to receive awards and recognitions from various federal ministries, departments and institutions, professional bodies and accreditation agencies.

"We applaud them for their achievements including the five-star rating for local authorities bestowed by the Housing and Local Government Ministry,” he said.

Chow’s statement was in response to recent discovery that the MBPP and MPSP received awards from a "Europe Business Assembly (EBA)” that was reported to offer fake awards in exchange for payment.

However, he did not confirm or deny if the two Penang councils had paid for their EBA awards.

MBPP, which was previously Penang Island Municipal Council (MPPP), received the Best Municipality Award from EBA in 2013 while the then-MPPP president Datuk Patahiyah Ismail had received the Best Municipal Manager award

MPSP also received the Best Holiday Destination, Best Cities and Top Medical/Travel/Hospitality Web-site awards from EBA in 2014.

UK-based newspaper The Times today published an article revealing the EBA as an organisation set up by Ukrainian businessmen to sell millions of pounds’ worth of fake awards and honours.

The news report claimed that the EBA had advertised itself as an Oxford institution when it was not in any way affiliated or linked to the University of Oxford.