GEORGE TOWN, MALAYSIA - The RM84 million Seberang Prai Municipal Council (MPSP) headquarters was built in Bandar Perda on the advice of Datuk Seri Anwar Ibrahim, who was then the deputy prime minister. This was stated yesterday by state Gerakan chief Datuk Dr Teng Hock Nan in the continuation of exchanges between him and Chief Minister Lim Guan Eng on the latter's claim of mismanagement by the former administration, which resulted in the MPSP losing RM225 million in five years.

Dr Teng, the former state executive councillor in charge of local government, said on Anwar's advice, a decision was made to build the headquarters in Bandar Perda instead of the original plan on MPSP land in Ampang Jajar.

He said the initial concept was to build a twin tower -- one tower as the headquarters of MPSP, while the other tower was to be leased to federal agencies and private sector.

He added that such a plan was thought to be economically viable as the state was enjoying an economic boom in 1995 and 1996.

"However, in 1998, then prime minister Tun Dr Mahathir Mohamad dismissed Anwar.

"By that time, the world was experiencing a financial crisis, and hence, the previous administration decided to review the plan and scale down the project to a single tower to cut cost, in line with prudent spending," he said in a statement here yesterday.

Lim had on Thursday continued to question how the MPSP was left with RM6.4 million this year after having RM230 million nine years ago.

He was quoted as saying that he would leave it to the public to decide for themselves whether MPSP spent its money prudently, built the structures according to specifications, and whether the projects were necessary.