21 govt bodies cited for fund management lapses

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10 ministries and 11 statutory boards were revealed to have lapses in their management of public funds and resources in an annual report by the Auditor-General’s Office (AGO).

In a more than 100-page report for the financial year ending 31 March 2012 released on Monday, the AGO said these lapses were found in its investigations into 11 complaints lodged during the latest financial year, as well as in its audits on financial statements from all government ministries and state organs.

At the forefront of the lapses were those related to procurement, contract management and financial administration, said Auditor-General Lim Soo Ping.

One of the biggest amounts cited in the report was the $69.42 million total of nine tenders by the National Parks Board (NParks) for park development projects that had been approved by the wrong authority.

The ministries or their divisions cited in the report include those of Defence, Education, Finance, Foreign Affairs, Health, Home Affairs, Manpower, National Development, Trade and Industry and the Prime Minister’s Office.

Statutory boards that were identified in the report for lapses include the Singapore Sports Council, the Accounting and Corporate Regulatory Authority, the Inland Revenue Authority of Singapore, the Workforce Development Agency, NParks, the National Environment Agency, the Public Utilities Board and the Singapore Tourism Board.

Lim noted that there were many instances when approval for contracts was only sought after a decision was made and commitment was given, or when approving authorities were given incomplete or incorrect information.

Lim also said he observed a lack of detailed and accurate documentation in the procurement process and he also highlighted the abuse of term contracts — those that are agreed-upon for an extended period — which resulted in several government departments being “grossly overcharged” for projects. He said the overcharging came mostly from items that were not covered in the agreed-upon term contracts.

Further lapses found by the AGO in its review included waiving competition on weak grounds in the awarding of tenders, failure to evaluate bids in accordance with specified criteria and splitting purchases in order to avoid the need to call for tenders and quotations. MORE >>>