WP-run town council ‘will work with MND to make good on outstanding transfers’

SINGAPORE — The Aljunied-Hougang Town Council (AHTC) today (Nov 27) said it fully accepts and respects the Court of Appeal’s judgment and will work with the Ministry of National Development (MND) to make good the outstanding transfers to its sinking fund.

In a statement, AHTC chairman Pritam Singh also noted that the town council acknowledges its role as a guardian of public funds and assured the ministry that the government grants or grants-in-aid are used solely for the upkeep of the town and in the interests of all residents.

He added: “In view of the judgment, we will work with the ministry to facilitate the prompt transfer of the outstanding grants to AHTC, which have been withheld for two years, so it can make the remaining outstanding quarterly sinking fund transfers as required by law.”

In a joint statement, the MND and Housing and Development Board (HDB) said the ministry is also ready to resume discussions with AHTC so that the grants can be disbursed soon, but with the necessary safeguards in place. The town council had previously snubbed the ministry’s offer for the grants to be disbursed, subject to conditions.

On the Service and Conservancy Charges (S&CC) operating grants, MND said it respects the apex court’s view that while it is for its minister to specify the conditions on which he will make the grants, it is also for the town council to decide if it will accept them. 

“As reiterated in our correspondences with the town council, MND has been and remains prepared to disburse the S&CC grants to the town council, subject to appropriate safeguards to ensure that the grants are properly managed and spent in the interest of residents,” the statement read.

The safeguards that the MND wants the town council to put in place include the appointment of accountants to ensure that the funds are properly used.

Previously, the ministry also spelled out several conditions for it to release two years’ worth of grants it has withheld from the town council. Among them, the ministry had proposed that the court appoint independent accountants. 

The town council would also have to keep the government grants in segregated accounts for sinking funds and operating funds. 

Payments out of these accounts exceeding S$20,000 would also have to be co-signed by the independent accountants.