'Swift, decisive steps' taken by People's Association in response to AGO Report: Lim

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'Swift, decisive steps' taken by People's Association in response to AGO Report: Lim http://www.channelnewsasia.com/mobil...s/2054958.html

SINGAPORE: Mr Lim Swee Say, deputy chairman of the People's Association, in Parliament on Monday (Aug 17) detailed the steps the association has taken in response to lapses flagged by the Auditor-General.

"We have taken swift and decisive action to put things right immediately. When things go wrong, we do not shy away from taking responsibility and tough action to put things in order," he said in response to a Parliamentary question filed by Workers' Party MP Png Eng Huat.

"This Auditor-General's Office audit is over and above our annual audits. By having multiple layers of checks and transparency, we ensure a high level of vigilance over the integrity of our financial management. While we cannot completely eradicate human error, being vigilant means these are the exceptions rather than the norm."

In Auditor-General Willie Tan's report submitted to President Tony Tan Keng Yam on Jul 1, the PA was cited for various lapses, including in the management of tenancy contracts in Community Club/Centre Management Committees (CCMCs) and procurement lapses.

Following the publication of the AGO report on Jul 15, the PA said it had taken immediate action to address the issues raised.

This included strengthening of supervision of grassroots organisations on the compliance with financial rules, the establishment of a Grassroots Finance Review Committee, the reprimanding of staff involved in non-declaration of conflict - even though no evidence of dishonesty was found - and the voluntary stepping down of a grassroots leader.

"As a statutory board managing public funds, PA takes our financial governance seriously. Our accounts are subjected to annual statutory audits. The last time our accounts received an adverse opinion was for FY2012. The adverse opinion was issued not for financial irregularity, but because the grassroots organisations’ accounts were not included in PA’s financial statements," Mr Lim said on Monday.

"PA has since consolidated all the GROs’ accounts into our financial statements. We have received clean opinions for our FY2013 and FY2014 financial statements."

LAPSES IN MANAGEMENT OF TENANCY CONTRACTS

In its report, the AGO had noted 10 of the 35 CCMCs did not obtain the relevant approvals for the direct award of 13 tenancy contracts without competition, worth a total of S$3.67 million.

Mr Lim gave further details of the 13 contracts, which consisted of:

Five contracts by two CCs with poor locations to provide children enrichment, food and entertainment services. One CC is in a housing estate under redevelopment and the other is in a new housing estate in its early stage of development

One contract for the installation of an ATM machine by a particular local bank to complement ATMs of two other local banks in the neighbourhood

One contract for the renewal and continuation of childcare services for the convenience of the parents and their children

Three contracts for the introduction of new community lifestyle concepts to encourage family bonding and to inject vibrancy in the neighbourhood

Two contracts for food outlets that are popular with heartlanders, including youths and families with young children

One contract for a non-profit community organisation that promotes healthy lifestyles, in particular for senior residents.

While noting the "good intentions of the CCMCs in bringing in these services for the benefit of residents" and the fact that they had benchmarked the rental rates offered against similar rental rates in the area, Mr Lim acknowledged that they contravened the financial rules of PA in not seeking prior approval for the waiver of tender.

"PA acknowledges our shortcomings in this area and has taken immediate steps to enhance compliance," he added.

LAPSES IN MANAGEMENT OF RELATED PARTY TRANSACTIONS

According to the AGO report, test-checks revealed seven instances where a Citizens' Consultative Committee chairman was involved in approving his own claims, totalling S$114,767 - a "clear conflict of roles", the AGO said.

Mr Lim on Monday said the seven claims made by the chairman were for a case of immediate financial assistance for a needy family at a funeral wake; a working dinner; an appreciation dinner for volunteers and community partners; as well as four claims for workplan retreats.

"Although there was no evidence of dishonesty, the CCC Chairman concerned has taken personal responsibility for these lapses and resigned from his position," Mr Lim said.
- CNA/es


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