Auditor-General finds governance lapses at WP-run town council

SINGAPORE — The financial affairs of Aljunied-Hougang-Punggol East Town Council (AHPETC) will be in the spotlight in Parliament on Thursday (Feb 12), after the Auditor-General’s Office (AGO) issued a report finding lapses in governance and compliance by the town council.

These lapses, detailed in the report issued today (Feb 9), include failing to transfer monies into sinking fund bank accounts as required by the Town Councils Financial Rules, and inadequately managing conflicts of interest when it came to procuring services for the Workers’ Party-run town council.

The Auditor-General also found that there was no proper system for monitoring service and conservancy charges arrears, and internal controls were poor, which could lead to wrong payments for goods and services. The town council also does not have a proper system for record management and accounting, which led to it being unable to provide relevant documents for audits. As such, its financial statements did not accurately reflect its state of affairs and transactions, the Auditor-General found.

“Unless the weaknesses are addressed, there can be no assurance that AHPETC’s financial statements are accurate and reliable and that public funds are properly spent, accounted for and managed,” the report stated.

The Auditor-General was last year directed to conduct an audit of the AHPETC’s accounts for FY2012-13, after independent auditors said they were unable to express an opinion on the town council’s financial statements for the second consecutive year. The auditors, Foo Kon Tan Grant Thornton, said they could not determine if items worth more than S$22 million were valid or accurate.

A copy of the Auditor-General’s report was submited to Finance Minister Tharman Shanmugaratnam and National Development Minister Khaw Boon Wan last Friday (Feb 6). A copy was also given to AHPETC the next day.

In a joint statement, the Ministry of National Development and Ministry of Finance said National Development Minister Khaw Boon Wan will move a motion on the AGO report when Parliament sits on Thursday.

For the full report, click here.