GEORGE TOWN, Penang - Two Penang executive councillors who are under scrutiny for allegedly owning "luxury houses" in Balik Pulau have come forward to explain how they purchased their properties.

Chow Kon Yeow and Wong Hon Wai, who are now staying in apartments, said they took housing loans from a bank.

Chow, who heads the Local Government and Traffic Management Committee, said he paid RM140,000 ($60,452) down payment from his savings and gratuity received as Tanjung MP.

"I signed the sale and purchase agreement to buy the house priced at RM590,000 from the developer on July 15.

"For the balance of RM450,000, I secured a housing loan from a local bank.

"I am legally obligated to pay a monthly instalment of RM2,759 for the next 19 years or until I reach the age of 70," he said in a statement here yesterday.

Chow said the reports had raised questions about his integrity as a politician who might have purchased the property through corrupt means or given favours by the developer.

"I did not receive any discount or favours from the seller.

"As a politician, I am aware that our every action is under close scrutiny. I told my family one day someone would want to question me over the house.

"After staying in a 700 sq ft apartment unit for the past 13 years, I am happy to provide an alternative housing to my family through honest means," he said.

Wong, who heads the Town and Country Planning, Housing and Arts Committee, said he bought the property in July last year for RM600,000.

"It was jointly financed by my parents, wife and me.

"I took a 30-year bank loan until the age of 65," he said in his SMS reply.

Wong said he currently owns a apartment for which he had completed payment in 2005.

"The three-storey house is a bigger place for my family. It can accommodate three generations," he said.

Chief Minister Lim Guan Eng had defended the duo on Sunday, saying that the houses could hardly be considered luxury properties.