Khaw Boon Wan orders review of town councils

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National Development Minister Khaw Boon Wan on Monday defended in Parliament the power of political parties over town councils, even as he called for a review of the framework.

The minister was facing questions over the Ministry of National Development's (MND) review of a controversial deal involving a town council run by the People's Action Party and Action Information Management, a firm owned by the ruling party.

"In addition, the PAP as a political party stands fully behind its MPs (Members of Parliament) and their town councils. That was why the PAP set up AIM in 1991: to ensure that residents living in PAP-run town councils would be well served," he pointed out.

He acknowledged, however, that there are gaps in the handing over of town councils and that this issue needs to be addressed.

These recommendations include: putting in place contractual provisions for automatic one-off extensions following an election when there is a change of party in charge of the council, setting a minimum notice period for termination initiated by the contractor or key appointment holders such as general managers.

Khaw said at least three areas needed to be looked at:
1) town councils' duties and responsibilities vis-à-vis HDB's
2) adequacy of town councils' sinking funds and their long term financial sustainability
3) hand-over and transition arrangements when MPs change.

He also said Senior Minister of State for National Development Lee Yi Shyan has been appointed to undertake MND's review on the framework for town councils.