WP to give full response in Parliament on Thursday

SINGAPORE — The Workers’ Party (WP) will give its full response to the issues raised in the Auditor-General’s audit findings on the town council it runs when Parliament sits on Thursday, said Ms Sylvia Lim.

In the meantime, members of the public should read the full audit report, which includes some of the party’s response, to have a better understanding of the issues, said the chairman of Aljunied-Hougang-Punggol East Town Council (AHPETC).

“What I would urge members of the public and those who are interested is to look beyond the headlines and the summaries, and to also look into some of the details of the report if they are interested, to have a better understanding of the issues,” said Ms Lim, who was speaking to the media before her Meet-the-People session in Serangoon Avenue 4 yesterday.

Asked what she hopes the public to look out for, Ms Lim, who is WP chairman, said: “I think it’s better for people to go in with an open mind, rather than me trying to preempt certain matters. I would prefer if people read it in totality and I think from there they will get a much better picture of what’s happening.”

The Auditor-General was last year directed to look into AHPETC’s accounts, after independent auditors said they were unable to express an opinion on the town council’s financial statements for two straight years.

In its report made public yesterday, the Auditor-General’s Office (AGO) highlighted a string of lapses committed by AHPETC, including how transactions involving related parties were not fully disclosed in financial statements. AHPETC also did not adequately manage conflicts of interests when it procured services from two companies that were either owned by or had directors and shareholders who are town council employees, the AGO said.

AHPETC’s response in the report said it had “no intention to hide any material information”, adding that it had specifically made disclosures under the heading of Related Party Transaction in its financial reporting, despite other town councils not practising the same.

AHPETC also said it is the norm or a common practice that management personnel of Managing Agents hold key positions in the town councils they manage. “To assist town councils, the relevant authorities could articulate when managing agents and town councils are considered related parties and the extent/details of disclosures required in the town council context.”

Responding to another AGO finding that there were lapses in the management of its sinking funds, AHPETC acknowledged them but added that the monies were, at all times, in the town council’s bank accounts, albeit in the wrong ones. It also said it would rectify the mistakes relating to transfers to and withdrawals from the different accounts.

AHPETC also addressed the lapses pointed out by the AGO in its management of Conservancy and Service Charges arrears, saying it was unable to tell how overdue arrears were because of a lack of historical data from town councils it took over after the 2011 General Election — Aljunied, and Marine Parade town councils.