SINGAPORE—The Aljunied-Hougang-Punggol East town council (AHPETC) paid higher fees to its managing agent (MA) FM Solutions and Services (FMSS), compared to the fees other town councils paid to their MAs, with the difference amounting to S$1.6 million each year from 2014, according to figures provided by the National Development Ministry (MND).
MND also noted that all MA contracts charge a clean MA rate for each property type, with the exception of FMSS’ 2011 MA contract with AHPETC. But unlike other MA contracts, FMSS’s charges, however, comprised three cost components in addition to the MA rate: one to cover the costs of existing staff of the former Hougang Town Council, another to cover the costs of new staff and a MA rate of S$6.37 for residential properties and S$12.80 for commercial properties under the former Aljunied Town Council.
The figures—released today in response to two parliamentary questions filed by chairman of the Workers’ Party-run AHPETC Sylvia Lim—showed that FMSS charged S$14.92 and S$7.43 for each commercial and residential unit, respectively, while the MAs of other town councils charged between S$4.79 and S$6.65, regardless of unit type.
This means commercial units in AHPETC were charged up to three times more than commercial units in constituencies managed by other town councils, like Tampines.
During the debate on the motion on the Auditor-General’s audit report of AHPETC last month, after the town council came under fire by the Auditor-General for its governance lapses, Law Minister K Shanmugam provided the same set of figures in Parliament to show that the fees for paid by AHPETC are significantly higher.
Among other things, Mr Shanmugan charged that payments to FMSS—whose directors were also key office holders in AHPETC—were made without transparency and accountability.
Ms Lim then took issue with the figures cited, asserting that MA rates for commercial and residential units are usually different, and repeatedly urged the minister to check on their accuracy.
Ms Lim today sought clarification on who the MAs for each of the other People’s Action Party-run town councils were between the years and 2011 and 2013, and the fees each MA charged.