PAP-run town council faces financial issues after SPP handover

The People’s Action Party town council that took over Potong Pasir from the Singapore People’s Party had found financial issues with the running of the constituency, especially relating to long-term financial adequacy. This led to a 17.6-per-cent spike in its managing agent (MA) rate between 2011 and 2012, said Potong Pasir Town Council (PPTC) chairman Sitoh Yih Pin.

Mr Sitoh cited an outstanding S$9 million bill that was due to the Ministry of National Development for a lift upgrading project. It has not been fully settled and “remains a problem to date”, he added.

In 2011, the MA rates were S$6.63 per residential and commercial unit, respectively. In 2012 and 2013, the rates paid to PPTC’s MA, EM Services, went up to S$7.80 for both property types. Last year, the rates were brought down to S$5.80 — after the town council called for a joint tender with the Moulmein-Kallang Town Council, Mr Sitoh said. “We decided to team up to enjoy economies of scale,” he said, adding that Potong Pasir is the smallest constituency, with only 5,269 dwelling units under its watch. KELLY NG