AHPETC receives poor rating for arrears management

SINGAPORE — For the second straight year, the town council run by the Workers’ Party (WP) was the only one to receive a “red” rating — the lowest of three grades — for its management of arrears in Service and Conservancy Charges (S&CC), according to the latest report by the Ministry of National Development (MND).

And it once again received no rating on corporate governance because, as with last year, it has not submitted its audited financial statements — the same issue that erupted into a heated debate between the WP and the People’s Action Party (PAP) over the sale of an IT system to a PAP-owned company. The other 14 town councils received “green” ratings in this aspect.

Aljunied-Hougang-Punggol East Town Council (AHPETC) Chairman Sylvia Lim explained in a media release that the delay was “mainly” because its auditors — appointed in early May when the AHPETC took over the management of Punggol East after a by-election — are still finalising its financial statements.

“We understand the issues being addressed include complexities resulting from the handover legacy, classification and treatment issues, year-end adjustments and others,” said Ms Lim, who is also WP Chairman.

The fifth edition of the Town Council Management Report released yesterday covers the period between April last year and March this year, with “green” being the top grade given to the town councils, followed by “amber”, then “red” for five areas of assessment. Only six town councils received “green” for all five indicators: Ang Mo Kio, Bishan-Toa Payoh, Holland-Bukit Panjang, Moulmein-Kallang, Sembawang-Nee Soon and Tanjong Pagar.

While all 15 town councils were rated “green” for cleanliness and lift performance, there was mixed performance for estate maintenance, with nine rated “amber”. In particular, the MND flagged the obstruction of common areas as a problem — it accounted for 35 per cent of all maintenance-related observations, slightly better than the 36 per cent in the last report.

“These are potential fire hazards and can hamper evacuation efforts during emergencies,” it said. “Town councils need to address this issue with their residents and improve their performance ... Residents should also play their part by not cluttering up the common corridor.”

The AHPETC was not the only one with problems in managing S&CC arrears; Potong Pasir Town Council, which came under the PAP in 2011, was rated “amber”.

Ms Lim said the AHPETC is closely monitoring the situation and has embarked on several steps since last year to recover the arrears. For instance, it has stepped up enforcement measures, like taking cases to court when other measures have failed.

“We are processing the arrears cases in batches. While some residents can settle their arrears within a short time, others may need more time ... and we have assisted them with instalment plans,” said Ms Lim. “Improving the arrears situation is an ongoing process and will (need) time to (take) effect.”

Potong Pasir Town Council Chairman Sitoh Yih Pin gave similar reasons. He said a committee has been formed since 2011 to address this problem by combing through the estate and persuading residents with outstanding arrears to pay. Those who hold jobs but “can barely make ends meet” are paying by instalments, he said, but there are also some households that are genuinely in financial hardship, and the town council tries to help them via welfare programmes.