Tag: Aljunied

  • WP Takes Backhanded Swipe At Minister Shanmugam’s Comments On Town Council Affairs

    WP Takes Backhanded Swipe At Minister Shanmugam’s Comments On Town Council Affairs

    The Law and Home Affairs Minister, K Shanmugam, in speaking on the the investigation of the General Manager of Ang Mo Kio Town Council (AMKTC) by the Corrupt Practices Investigation Bureau (CPIB) contrasted the approaches of PAP-run town council with the one run by Workers’ Party (WP). WP’s then-Aljunied-Hougang-Punggol East Town Council, has been under scrutiny for its relationship between its former managing agent FM Solutions and Services (FMSS) and Essential Maintenance Service Unit (EMSU) contractor FM Solutions and Integrated Services (FMSI).

    Mr Shanmugam alleged that unlike the PAP-run town council, the Workers’ Party-run town council has not been transparent with the general public.

    The Workers’ Party in responding to Mr Shanmugam’s harsh criticisms of its town council management said that “since CPIB is investigating the AMKTC case, we should let due process take its course and not jump to conclusions.”

    In its statement, WP pointed out that when their auditors released the report on AHTC in July 2016, “some people jumped prematurely on the possibility of fraud and fictitious payments without waiting for the results of the audit.”

    Their auditor, KPMG, had said in the July 2016 report that the use of this “highly irregular shortcut” made it “practically impossible” to have effective oversight of these transactions.

    They added: “Such large-scale use of this practice raises questions about the management of AHTC’s finance function. Consequently, it is easier for duplicate payments or fictitious payments to be made without being detected.”

    Mr Shanmugam had then taken issue with the manner the WP announced the lapses highlighted by its auditors. In a Facebook post, the Minister said KPMG’s report underlined that “AHTC’s leadership has neither upheld nor enforced integrity and ethical values”.

    “The rot is at the top,” he added. “This should come as no surprise. The High Court and the Court of Appeal have already criticised Ms Sylvia Lim and Mr Pritam Singh for suppressing the truth (designed to mislead) both in Parliament and in Court. To them, the truth is a tradable commodity.”

    Aljunied-Hougang Town Council subsequently ordered a 100% check on the $60m direct journal entry and dummy code issues.

    WP’s unsigned statement today said, “when no fraud and fictitious payments were found, the speculators kept quiet.”

    The statement further said: “Premature speculation, especially when done by influential people, may pervert the course of justice by shaping investigations. So let’s wait for the findings of the CPIB on the AMKTC case and let the law take its course.”

     

    Source: http://theindependent.sg

  • WP Chief Low Thia Khiang: KPMG Report On Past Payments & Transactions ‘Inconclusive’

    WP Chief Low Thia Khiang: KPMG Report On Past Payments & Transactions ‘Inconclusive’

    The audit report on the Aljunied-Hougang Town Council’s (AHTC) past payments and transactions remains “inconclusive” despite the manpower and resources spent, said Workers’ Party (WP) chief Low Thia Khiang on Wednesday (Nov 2).

    Mr Low was making his first comments on audit firm KPMG’s finding that flawed governance in the WP-run AHTC had exposed millions in public funds to improper use, to the extent there could be criminal conduct if lapses were deliberate.

    “The report seems to have a lot of answering (to do) despite the fact that they had deployed a lot of manpower, public monies (were) used, and eight months spent,” said Mr Low, who was speaking to reporters before the start of his fortnightly Meet-the-People Session at the void deck of Block 522 Hougang Avenue 6. “The town council also spent a lot of manpower responding to their queries. The MPs were also being interviewed to satisfy their questions, but unfortunately the report seems to be inconclusive in that sense. So that’s it.”

    KPMG’s 68-page report, which was made public by AHTC on its website on Tuesday, flagged “serious conflicts of interest” and a “failed control environment” which exposed millions of dollars in public funds to improper use, including in payments to its former managing agent FM Solutions & Services and service provider FM Solutions and Integrated Services.

    The owners of these two companies concurrently held key management and financial control positions in the town council and approved 132 payment vouchers amounting to more than S$23 million from the town council to the company.

    KPMG also said improper payments to FMSS and FMSI alone amounted to over S$1.5 million, of which at least S$600,000 ought to be recovered by the town council.

    The improper payments to FMSS and FMSI included overpayments for project management fees, overpayments to FMSS for purported overtime and CPF contributions payments to FMSS without certification that work had been performed, as well as payments made without the requisite co-signature of members of the town council.

    AHTC also overpaid when it appointed FMSS as its managing agent by more than S$1.2 million.

    Responding to these issues, Mr Low reiterated the points in a statement issued by his party on Tuesday, saying KPMG had found “no fictitious, fraudulent, nor duplicate payments”.

    “So that is what is important for the public to know,” he added.

    Mr Low also said the report “has not said anything” about conflicts of interest among the WP Members of Parliament, the town councillors, FMSS, and other contractors it appointed.

    “To me, the report is simply more detailed than AGO’s report, in terms of the framework, and the kind of lapses they found are basically as the AGO’s but in more detail, yes, because they had spent a lot of time going through the records. It is a forensic audit,” he added.

    Mr Low was referring to a special audit by the Auditor-General’s Office that found major lapses in compliance and governance in AHTC. The finding led to a High Court ordering AHTC to appoint auditors to fix these lapses.

    After fielding questions for five minutes, Mr Low ended the doorstop interview, saying the town council was still studying KPMG’s report and would issue media releases on the matter, if necessary.

    Meanwhile, Nanyang Technological University accounting professor El’fred Boo said the proposed amendments to the Town Councils Act would help strengthen governance in a few ways, such as how to avoid conflict of interest situations. But he felt that there could be other changes, such as a requirement to set clear objectives and performance milestones to make it easier to assess them and hold them accountable.

    More regular compliance audits could also be made a requirement to boost the Ministry of National Development’s ability to monitor the situation at individual town councils, said Associate Professor Boo. At the same time, there should be a channel for people to report matters of concern to the town council chairman and/or MND, he added.

     

    Source: www.todayonline.com

  • KPMG: ‘Pervasive Control Failures’ In AHTC

    KPMG: ‘Pervasive Control Failures’ In AHTC

    Independent auditors have found that flawed governance in the Workers’ Party-run Aljunied Hougang Town Council (AHTC) led to improper payments running into the millions to various parties, including to its former managing agent FM Solutions & Services (FMSS) and service provider FM Solutions and Integrated Services (FMSI).

    In a report made public on the town council’s website on Tuesday (Nov 1), KPMG said improper payments to FMSS and FMSI alone amounted to over S$1.5 million.

    AHTC also overpaid when it appointed FMSS as its managing agent by more than S$1.2 million, said KPMG, which was appointed by AHTC on court orders to help fix compliance and governance lapses uncovered in a special audit by the Auditor-General’s Office.

    Flagging “serious conflicts of interest” and a “failed control environment” at the town council, the auditing firm also warned that if the issues involving FMSS and FMSI were deliberate, “they could amount to criminal conduct, the implications of which the Town Council should consider”.

    KPMG’s latest report centred on improper payments made by the council to various parties, in particular to FMSS and FMSI, which were appointed between 2011 and last year.

    Their appointments “exposed the Town Council to serious conflicts of interest as the direct owners of FMSS and FMSI (with a profit motive) concurrently held key management and financial control positions in the Town Council (charged with a service motive)”, said KPMG.

    For example, Mr Danny Loh – who died last year – was secretary in the town council as well as shareholder of FMSS, and sole proprietor of FMSI.

    “The situation of FMSS is unlike that of the Town Council’s previous managing agents. In the former case, those approving payments for the Town Councils were not beneficiaries engaging in a profit-motive transaction with the Town Council,” said KPMG.

    In the case of FMSS, the “conflicted persons” were in effect “approving payments to themselves”.

    Meanwhile, the Town Councillors relinquished an “unacceptably high degree of financial responsibility” to the conflicted persons.

    “In this regard, payments with an aggregate financial value of at least SG$23 million involved approvals by the conflicted persons of payments in effect to themselves through payment vouchers, which is an important gateway in the Town Council’s payment approval process,” KPMG said.

    In this “failed control environment”, the improper payments to FMSS and FMSI included amongst others, overpayments to FMSS for project management fees, overpayments to FMSS for purported overtime and CPF contributions payments to FMSS without certification that work had been performed, as well as payments to FMSS that were made without the requisite co-signature of members of the town council.

    These amounted to about S$1.5 million, of which at least S$600,000 ought to be recovered by the town council, said KPMG.

    The firm also said the tendering out of the contracts to FMSS and FMSI was “deficient in numerous respects”.

    For one, for the first managing agent contract, FMSS was more expensive than the comparable contract with the former Aljunied Town Council managing agent.

    When the contract was renewed — the second managing agent contract — the rates increased significantly. The increase in the managing agent’s costs in the first year under FMSS amounted to approximately S$500,000, while under the second managing agent contract the rates were, conservatively, S$700,000 million more that what might have cost to retain CPG as the managing agent.

    Overall, KPMG reported “pervasive” control failures cutting across key areas of AHTC’s governance, financial control, financial reporting, procurement and records management over the audit period. Such flawed governance has potential to “conceal and hinder the detection and identification of all instances of proper payment”, said the accountants.

    As a result, KPMG said it was unable to conclude whether the improper payments and the amounts that ought to be recovered identified in the report are exhaustive.

    Noting that it is beyond the auditors’ mandate to conclude whether an offence has been committed, KPMG said: “While our work was not focused on identifying potential criminal acts arising from the issues we observed, we are advised that, had the shortcomings (identified in) this report been committed deliberately, they could amount to criminal conduct, the implications of which the town council should consider.”

    AHTC said it is studying the report and will respond in due course.

     

    Source: www.todayonline.com

  • Madrasah Student Attacks: Descendant Of Arab-Muslim Aljunied Family Pays For Lawyer To Represent Accused

    Madrasah Student Attacks: Descendant Of Arab-Muslim Aljunied Family Pays For Lawyer To Represent Accused

    A member of one of Singapore’s oldest Arab-Muslim families has stepped forward to pay for a lawyer for the security officer accused of attacking three madrasah students.

    The entrepreneur, who wants to be anonymous, is in his 40s and comes from the Aljunied family – descendants of Singapore’s first Arab settler Syed Omar Ali Aljunied, who built Singapore’s first mosque, and his family.

    He told The Sunday Times that he is stumping up the money “purely out of love and compassion”.

    Security officer Koh Weng Onn, 48, was charged earlier this month with kicking a 16-year-old girl in the thigh in what court papers called a “racially aggravated” act.

    He was also accused of swinging a plastic bag containing a filled 1.5-litre water bottle at two 14-year-old girls in separate attacks, hitting them in the face.

    The donor said he made his decision after hearing of Koh’s arrest and got in touch with lawyer Sunil Sudheesan, who will be representing Koh.

    He has not met the accused’s family. He said he was inspired by his forefathers, who had built madra- sahs, mosques and churches in Singapore. “I’m sure my forefathers would have done the same (for Koh),” he said.

    The father of two children aged 13 and 11 added: “I want to inspire (in) them that ignorance and anger can only be neutralised with acts of compassion and love and mercy.”

    In the aftermath of the attacks, government and community leaders of all races have stressed that racially motivated acts of violence will not be condoned, urging communities to stand united against such acts.

    The accused’s older brother, Mr Mohammad Johan Koh, said: “I was very surprised to hear this – that a kind person wanted to help.”

    He did not expect to find out that the anonymous person was from the Arab-Muslim community.

    The 49-year-old relief security guard added that his family hope to send their appreciation to the man, and to thank him in person.

    “We know our financial condition; even if we decided to get a lawyer, we might not have been able to pay the legal fees,” he said.

    Mr Sudheesan, of law firm Quahe Woo and Palmer, said it is quite rare for an anonymous benefactor to offer to pay for an accused’s full legal representation. He added: “It’s humbling that someone thought well enough of me to recommend me to the benefactor.”

    Koh has been remanded for psychiatric observation. The case is scheduled to be mentioned tomorrow.

     

    Source: www.straitstimes.com

  • Aljunied Residents Lauds Area’s ‘Human Touch’

    Aljunied Residents Lauds Area’s ‘Human Touch’

    Since Aljunied Group Representation Constituency (GRC) came under Opposition rule four years ago, some residents interviewed have noticed fewer grassroots activities, and a handful felt that there were fewer large-scale estate upgrading projects, and repairs for town amenities seem to take a longer time.

    But with parts of the constituency currently undergoing the Neighbourhood Renewal Programme, and with the blocks of flats recently given a fresh coat of paint, the 50 or so residents interviewed by TODAY — which spent several weeks visiting the GRC — were hard-pressed to cite any material differences in their lives since the GRC changed hands.

    The biggest change, they felt, was the greater human touch by the town council and Members of Parliament (MPs). Anecdotes abound of how the town council employees are prompt in attending to issues and MPs being more visible and approachable, with most residents interviewed able to tell who the MP looking after their estate is.

    Shopkeepers interviewed also preferred the more laid-back approach in terms of enforcing regulations — for example, the town council usually closes one eye when they flout the regulations on how much space they can use outside their shops to display their wares.

    In the 2011 General Election (GE), the Workers’ Party team won 54.7 per cent of the vote, defeating the People’s Action Party (PAP), which garnered 45.3 per cent of the vote.

    The financial management lapses at the Aljunied-Hougang-Punggol East Town Council have dominated headlines, particularly since the hustings started last week. By and large, however, the residents TODAY spoke to were not seized by the issue.

    The general consensus is that as long as their basic needs are taken care of, and the constituency is adequately maintained — corridors are kept clean, rubbish is cleared, lifts are working, as several residents put it —they said they did not understand the town council’s complex financial details.

    They also noted that four years might be too short a period to judge the performance of the WP in running the estate.

    Still, Mr Alex Toh, 37, who has stayed in the Serangoon North precinct for close to two decades, said there was a stark difference in the responsiveness of the town council when the constituency changed hands after the 2011 GE.

    The town council officers are friendly and responsive, he said, whenever he calls them — be it to highlight a lighting problem or enquire about other municipal matters. He added that he would frequently see Ms Sylvia Lim, who is the sitting Member of Parliament for the Serangoon Division, in his neighbourhood — sometimes as early as 7am, and in the evening on the same day. “I thought she stays in Serangoon because I see her around often and she is in the estate so early in the day,” said Mr Toh, who was surprised to learn that Ms Lim resides in the western part of the island.

    Madam Ade Huang, 59, who has been staying in Bedok Reservoir for the past eight years, said that the town council would clear the rubbish in her estate quickly whenever she calls to complain about it. “Last time … (the town council) didn’t even pick up the phone,” said Mdm Huang.

    Madam Yeo Ah Gek, 47, who stays opposite the Hainanese Market and Food Centre, noted how the town council installed lifts at the food centre — which was built without government funding, Ms Lim had said at a recent election rally — after some issues that elderly residents faced with the escalators. Mdm Yeo said: “At least now with the lifts, I don’t have to worry about my elderly mother falling down if she goes to the market.”

    Nevertheless, residents said they have felt the impact of having their estate run by a town council that has fewer resources compared with its predecessor. A Serangoon North Avenue resident of 10 years, who only gave her name as Mel, said she noticed that repair works seemed to take longer compared with the past. Referring to a mini exercise park in the constituency, she noted that the restoration works took at least six months. “I am not sure why it took so long to complete when it was just minor repair work and they blocked up a large portion of it, so residents could not use (the facility) for quite a while.”

    Another long-time resident, who declined to be named, felt that upgrading work has been slower since Aljunied GRC came under the Opposition. “I don’t see a lot of upgrading work here compared with my friends staying in other estates such as Marine Parade,” said the part-time worker, who has been staying in Kaki Bukit for four decades.

    In terms of the general maintenance of the estate, residents interviewed said they do not have any problems with the cleanliness, although some noticed that the washing of the corridors are less frequent.

    Sprawling across several mature estates, Aljunied GRC is well-served by roads and public transportation. Facilities and amenities are also abundant, residents said.

    RESIDENTS SUGGEST IMPROVEMENTS

    Nevertheless, some residents sug­gested certain improvements to the amenities. Madam Serene Chai, 49, who stays along Bedok Reservoir Road, noted the lack of a bank branch near her home, with the nearest one located at Bedok Bus Interchange.

    Madam Atmi Hamid, 57, who stays along Hougang Avenue 1, also felt there are insufficient Muslim food options. “Sometimes, you need something last-minute and it can be quite hard to get something ‘halal’ nearby,” she said.

    Some residents said there was less buzz in the neighbourhood, even though they acknowledged that WP’s grassroots volunteers have been organising community activities.

    A resident, 60, who only gave her name as Madam Low, remarked that the Serangoon area where she is living in “just doesn’t seem as lively anymore”. In the past, there would be more activities during festive occasions and the PAP MP would visit the neighbourhood with much fanfare, she recalled.

    Shopkeepers lamenting the tough business environment, due to the proliferation of online shopping as well as new supermarkets and malls sprouting up in the area, said they were grateful for what they described as the town council’s “more relaxed approach”.

    For example, the town council would not come down hard on the shopkeepers when new goods arrive and are temporarily placed outside the shops beyond permitted limits. A hardware shop owner, who wished to be known only as Mr Goh, said: “Last time, the PAP town council people always came and took photos, and threatened to issue me a summons when I put my things outside … Now, they don’t bother me as much … We are all happy.”

    Other shopkeepers interviewed expressed the same sentiments. “(They) used to come almost every other day to tell me I cannot put my things outside,” said another shopowner, Mr Ho.

    The town council was also responsive to their needs, the shopkeepers said.

    Mrs Anchelly Devi, who owns a minimart selling Indian goods and spices, remembered calling the town council to ask to use the space outside her shop to sell some goods.

    The officers came to her shop the very same day to look into the matter. “When business takings are already low … it is really nice when the town council is efficient,” she said.

     

    Source: www.todayonline.com