Skip to main content

Advertisement

Advertisement

MND asks AHPETC for cash-flow position

The Ministry of National Development (MND) has asked Aljunied-Hougang-Punggol East Town Council (AHPETC) for its latest cash-flow position, to assess the impact of the proposal for the release of government grants put forward by the town council.

The Ministry of National Development (MND) has asked Aljunied-Hougang-Punggol East Town Council (AHPETC) for its latest cash-flow position, to assess the impact of the proposal for the release of government grants put forward by the town council.

The ministry has also offered the full grant to the town council, most recently on Aug 6, but has not heard from them. The offer of a full grant, said MND and the Ministry of Finance in a joint statement yesterday, was also made on May 2 and June 15.

The MND has been withholding grants from AHPETC, as it has said it has no guarantee the money would be used properly. AHPETC, meanwhile, has asked that the full sum be paid to its sinking fund account.

The ministries issued the joint statement in response to an AHPETC statement, which the ministries said “misquoted” Finance Minister Tharman Shanmugaratnam on remarks he made about the town council’s finances in Parliament. AHPETC issued a press statement after the Parliament session, saying that Mr Tharman was incorrect in saying that even if the operating grant withheld by the MND for Financial Year 14/15 is paid in its entirety to AHPETC’s sinking funds, it would not be sufficient for AHPETC to comply with its obligations for the financial year. If the MND did so, the town council would fulfil its obligation to transfer sinking funds for FY14/15, it said.

The MND and MOF said Mr Tharman did not make any statement on whether AHPETC could fulfil its obligations if the MND grant is fully paid to AHPETC’s sinking funds. They also pointed out that beyond its obligations for FY14/15, AHPETC owed S$4.5 million to its sinking fund which was due July 31. Another S$4.5 million will be due in October, January and April next year, totalling S$18 million, they pointed out.

Speaking at her Meet-the-People session yesterday, AHPETC chairman Sylvia Lim said the discussion with MND on releasing grants is ongoing, and declined to elaborate.

Read more of the latest in

Advertisement

Advertisement

Stay in the know. Anytime. Anywhere.

Subscribe to get daily news updates, insights and must reads delivered straight to your inbox.

By clicking subscribe, I agree for my personal data to be used to send me TODAY newsletters, promotional offers and for research and analysis.