http://www.tremeritus.com/2015/08/17...in-pas-lapses/
Lim: No evidence of dishonesty in PA’s lapses
August 17th, 2015 |
Author: Editorial
Minister Lim Swee Say with his famous toothpick (Photo:
ST)
The Parliament session began today (17 Aug) with DPM Tharman discussing about
the Auditor-General’s Report for FY2014/15, which was released last month (15
Jul).
Government agencies take “prompt action” on lapses flagged by the AGO report,
and make no attempt to cover up their weaknesses, said Mr Tharman. He then took
the opportunity to snipe at WP’s AHPETC.
“The AGO gave an unmodified opinion of the Government’s audit statements,
unlike on AHPETC,” he said. “AHPETC’s own auditors and the AGO cannot account if
the money has been safeguarded and properly accounted for. The whole house of
AHPETC’s finances is unsafe, with many structural defects.”
With regard to AGO’s report on People’s Association (PA), WP MP Png Eng Huat
asked in Parliament:
To ask the Minister for Culture, Community and Youth in respect of the audit
on the People’s Association that is reported in the Report of the
Auditor-General for FY2014/15
(a) what are the 13 businesses or services that have been given tenancy
contracts totalling $3.67 million without competition and what are the reasons
given; and
(b) what are the seven claims totalling $114,767 made by the Chairman of the
CCC to himself and what is the total amount of the three claims that have no
supporting documents.
AGO has pointed out in its report the various lapses occurred in PA,
including in the management of tenancy contracts in Community Club/Centre
Management Committees (CCMCs) and procurement lapses.
Lim Swee Say defends PA
In response, PA’s Deputy Chairman Lim Swee Say replied, “We have taken swift
and decisive action to put things right immediately. When things go wrong, we do
not shy away from taking responsibility and tough action to put things in
order.”
“This Auditor-General’s Office audit is over and above our annual audits. By
having multiple layers of checks and transparency, we ensure a high level of
vigilance over the integrity of our financial management. While we cannot
completely eradicate human error, being vigilant means these are the exceptions
rather than the norm,” he added.
“As a statutory board managing public funds, PA takes our financial
governance seriously. Our accounts are subjected to annual statutory audits. The
last time our accounts received an adverse opinion was for FY2012. The adverse
opinion was issued not for financial irregularity, but because the grassroots
organisations’ accounts were not included in PA’s financial statements.”
“PA has since consolidated all the GROs’ accounts into our financial
statements. We have received clean opinions for our FY2013 and FY2014 financial
statements,” Mr Lim assured.
Lapses in management of tenancy contracts
In its report, the AGO had noted 10 of the 35 CCMCs did not obtain the
relevant approvals for the direct award of 13 tenancy contracts without
competition. Mr Lim gave details of the 13 contracts, worth a total of $3.67
million:
Five contracts by two CCs with poor locations to provide children
enrichment, food and entertainment services. One CC is in a housing estate under
redevelopment and the other is in a new housing estate in its early stage of
development
One contract for the installation of an ATM machine by a particular local
bank to complement ATMs of two other local banks in the neighbourhood
One contract for the renewal and continuation of childcare services for the
convenience of the parents and their children
Three contracts for the introduction of new community lifestyle concepts to
encourage family bonding and to inject vibrancy in the neighbourhood
Two contracts for food outlets that are popular with heartlanders, including
youths and families with young children
One contract for a non-profit community organisation that promotes healthy
lifestyles, in particular for senior residents.
Mr Lim acknowledged that these contracts have contravened the financial rules
of PA in not seeking prior approval for the waiver of tender. “PA acknowledges
our shortcomings in this area and has taken immediate steps to enhance
compliance,” he said.
Lapses in management of related party transactions
According to the AGO report, test-checks revealed 7 instances where a CCC
chairman was involved in approving his own claims, totalling $114,767 – a “clear
conflict of roles”, the AGO said.
Mr Lim said the 7 claims made by the chairman were for:
a case of immediate financial assistance for a needy family at a funeral
wake
a working dinner
an appreciation dinner for volunteers and community partners
four claims for workplan retreats
“Although there was no evidence of dishonesty, the CCC Chairman concerned has
taken personal responsibility for these lapses and resigned from his position,”
Mr Lim said.
Admiralty CCC Chairman Tonic Oh Thai Nan
Tonic Oh with MP Vikram Nair
The said CCC Chairman was earlier identified by the media to be Mr Tonic Oh
Thai Nan, Admiralty CCC Chairman.
In addition to the 7 claims totalling $114,767 approved by Mr Oh himself, AGO
also found Mr Oh involved in awarding 2 contracts (totalling $32,000) to a
company of which he was a member of the senior management. Through online
searches, TRE has found that Mr Oh was indeed the Business Development
Director/Public Relation Officer of CPC Construction Pte Ltd.
He also approved payment for a purchase (amounting to $1,500) from another
company of which he was both a director and shareholder. The company is likely
to be Thai Ning Trading Pte Ltd, since it was the only company belonging to him
which was in operation between 2014 and 2015, according to ACRA checks.
In these cases, he did not declare the conflict of interest in the
transactions.
When it was found out that the CCC Chairman involved was Mr Oh, Admiralty CCC
Chairman, MP for Sembawang GRC Vikram Nair said that he was saddened to learn of
the AGO findings and that the grassroots leader concerned (Mr Oh) has “served
with distinction for many years”.