SINGAPORE — A spirited exchange took place after Law Minister K Shanmugam delivered his speech in Parliament yesterday, with Workers’ Party (WP) chairman Sylvia Lim saying she “utterly” rejected his assertions of “unlawful conduct” and the minister firing back by saying “talk is cheap”.

It was premature for Mr Shanmugam to accuse the WP of not giving answers, as some WP Members of Parliament (MPs) have yet to speak, said Ms Lim, who is also chairman of Aljunied-Hougang-Punggol East Town Council (AHPETC), which came under fire by the Auditor-General for its governance lapses documented in a report released on Monday.

Mr Shanmugam, who rose to speak after National Development Minister Khaw Boon Wan tabled a motion on the Auditor-General’s report, had charged that the managing agent (MA) fees paid to FM Solutions and Services (FMSS) were inflated compared with the fees other town councils paid to their MAs, with the difference amounting to S$1.6 million each year.

The figures showed that FMSS charged S$14.92 and S$7.43 for each commercial and residential unit, respectively, while the MAs of other town councils charged between S$4.80 and S$6.65, regardless of unit type.

Ms Lim took issue with the figures he cited, saying the numbers are “definitely a mistake” because MA rates for commercial and residential units are usually different, and repeatedly urged him to check on their accuracy.

“We utterly reject the minister’s assertions or insinuations that the manner in which we appointed the managing agent to run the town council was to benefit our friends ... it is a fact that some of the (WP) MPs have yet to speak. If he is accusing us of not giving answers and all that, I think it is premature for him to say so,” said Ms Lim.

Aljunied GRC MP and AHPETC vice-chairman Pritam Singh — the only other WP MP who responded to Mr Shanmugam’s speech — said his duty was to AHPETC residents. “Minister, if you were a resident, I will answer your questions,” he said.

Mr Singh, who was singled out for a stinging rebuke by Mr Shanmugam for being “anything but transparent”, also asserted that the WP’s belief in transparency and accountability is evident in its MPs’ support of the motion tabled by Mr Khaw.

His remarks prompted Minister of State (Prime Minister’s Office & Ministry of Culture, Community and Youth) Sam Tan to wade into the fray with a sharp retort: “I’m an Aljunied resident ... You can give the answers in the name of transparency and, if I might add, professionalism and integrity and honesty, to this House.”

In response to media queries, the Ministry of National Development clarified that MAs for all town councils, except FMSS, charge the same rate across the board. “In previous years, some MAs charged differentiated rates for residential and commercial units, but industry practice has changed since then,” said a spokesperson.

Ms Lim also contended that Mr Shanmugam’s portrayal of the AHPETC as a lawless operation was untrue. She reiterated that the town council had taken steps to segregate the duties and disclose ownership interests of staff who wore two hats — one in the AHPETC and one in FMSS — such as submitting FMSS’ company profile to its auditors for evaluation.

She added that the town council had been given the all-clear when it engaged an auditor to assess its processes over a tender put up for an MA in 2012.

In response, Mr Shanmugam challenged WP MPs to “walk the talk” and respond to specific questions he had raised about the state of the town council’s financial accounts, including what AHPETC has not disclosed — with regards to related party transactions — the reasons of nondisclosure and why its MA was paid over and beyond other MAs.

He added that his assertions were not broad statements, but were supported by facts and figures. It would be a surprise, said Mr Shanmugam, if any honest professional would be supportive of the AHPETC’s systems and procedures he had outlined.

“Rather than grand pronouncements of rejecting my statements and that you are all for transparency ... So, in the spirit of transparency, answer the questions,” Mr Shanmugam said.