 The George Town City Council was at the time the richest local council in the country, with annual revenue almost double that of the Penang state government.In response to allegations of maladministration and misconduct, a Royal Commission of Enquiry was set up by the federal government under Senator Athi Nahappan, while the functions of the City Council were temporarily transferred to the Chief Minister of Penang in 1966.The Royal Commission cleared the George Town City Council of the allegations of corruption and recommended the restoration of municipal elections.