GEORGE TOWN: Penang’s financial transparency, zakat governance and environmental oversight have come under scrutiny at the state assembly sitting, with the Opposition demanding answers over several issues.
Opposition leader Muhammad Fauzi Yusoff (PN-Sungai Dua) questioned the transparency of Chief Minister’s Incorporated (CMI), Penang’s investment arm and asset management agency, claiming it was operating without sufficient financial accountability.
Muhammad Fauzi said CMI managed 71 projects in 2024 and 2025, with revenue from land rental and lease arrangements under CMI and State Secretary Incorporated (SSI) amounting to RM8.43mil as of Sept 30, 2025.
“However, until today there are still no clear and comprehensively audited accounts,” he said.
He said amendments to the Chief Minister Incorporated Enactment required the corporation to maintain proper accounts and for the Chief Minister to table financial statements and the Auditor-General’s views in the state assembly.
“Unfortunately, until now the Chief Minister has failed to table the financial statements and Auditor-General’s report regarding the accounts.
“How is it possible for an entity managing millions of ringgit in state revenue to operate without proper financial transparency?
“This is not about perception. This is about the basic principles of governance,” he said on Monday (May 11).
Muhammad Fauzi also questioned the management structure of CMI, saying the public still lacked a clear picture of the companies, shareholding structures and ownership links under the entity.
“Who is actually managing the state assets?
“Who benefits from these projects?
“And how can checks be carried out if the corporate structure itself is not transparent?” he asked.
On zakat governance, Muhammad Fauzi said issues surrounding zakat should not be dismissed as slander while investigations by the Malaysian Anti-Corruption Commission (MACC) were ongoing.
“How can something currently being investigated by the MACC be considered slander?” he said.
He said the matter involved an official investigation, with 63 individuals, including top state leaders, senior government officers and religious figures, having been called up.
“The public does not need denials alone. Instead, they deserve clear and convincing explanations,” he said.
Muhammad Fauzi proposed setting up an independent Syariah audit body at the state level to review and audit decisions involving zakat, wakaf and baitulmal management.
“This step is important not only to improve transparency, but also to ensure religious institutions are protected from any doubts that could affect the confidence of Muslims in this state,” he said.
He also called for the 2025 audit report of the Penang Islamic Religious Council (MAINPP) to be tabled at the next state assembly sitting.
The MACC is investigating alleged misuse of zakat funds and land transactions involving MAINPP.
The MACC has previously confirmed that 63 individuals, including state officials, religious council members and officers, were called up to assist investigations into the alleged misuse of RM184,000 in zakat funds and land purchases worth about RM10mil.
Separately, Muhammad Fauzi raised concerns over the RM1bil Jelutong landfill rehabilitation and reclamation project, which he said had reportedly failed to obtain Environmental Impact Assessment (EIA) approval five times.
“The question is, how can a mega project announced since 2020 still fail to meet basic environmental requirements after more than 680 days?” he asked.
He said repeated rejections by the Department of Environment indicated there were still serious technical and environmental risks linked to the project.
“We do not reject the need to rehabilitate the Jelutong landfill site, but the public is questioning why the sea reclamation component continues to be defended despite public objections and repeated failures to obtain approval,” he said.
