Auditor-General flags potential irregularities, lapses in several govt entities; multiple police reports filed
SINGAPORE — Four government agencies have made police reports over “possible irregularities” flagged by the Auditor-General's Office (AGO) in its annual audit of the public sector.The potential irregularities were found in the records of the Ministry of Education (MOE), Nanyang Polytechnic (NYP), National Parks Board (NParks) and the Ministry of Social and Family Development (MSF).
The audit report, released on Wednesday (July 17), stated that these irregularities were found in areas such as quotations for star-rate items, government-paid leave schemes, and unusual withdrawals from Child Development Accounts.
Apart from the four agencies that filed police reports, AGO also found lapses in the management of revenue and collections of Sport Singapore (SportSG), the national sports governing body, saying that SportSG did not have adequate controls over admissions to ActiveSG pools and gyms.
This has resulted in abuse of ActiveSG members’ passes, such as deceased members’ accounts being used for admission.
For instance, AGO found that 18 accounts belonging to dead ActiveSG members had been used to enter pools and gyms more than 200 times.
WHY IT MATTERS
AGO conducts regular audits of public agencies to enhance public accountability and help strengthen their financial governance.AGO's report for the financial year of 2023-2024 covered all 16 government ministries and eight organs of state, three government funds, eight statutory boards, four government-owned companies and two other accounts.
The report concluded that public sector entities should "pay greater attention to" three main areas:
- Procurement and contract management
- Grant management
- Revenue and collections management
She added that AGO would follow up with the entities on their remedial actions.
DOUBTS OVER VALUE FOR MONEY OBTAINED FOR ‘STAR RATE’ ITEMS
Star-rate items refer to items for which rates are not listed in a work contract. These rates are typically used for contract variations when the actual work performed is more complex than initially envisaged at tender, resulting in increased costs.Two entities were flagged for potential irregularities in the quotations for these items.
1. Ministry of Education
What AGO found:
- Out of 512 star-rate items under four construction contracts, AGO found possible irregularities in quotations for 230 of them
- These totalled S$1.34 million, or 33 per cent of the contract's total value
- These raised concerns about whether value for money had been obtained for the star-rate items
- Other issues, including possible overpayments amounting to S$317,100 to contractors, as well as delays in finalising accounts for construction contracts, were also flagged
The ministry also said that it takes a serious view of the lapses observed, adding that it has "zero-tolerance" for improper quotations and expects its consultants and contractors to adopt the same stance.
“MOE will continue to train our officers to detect potential irregularities in quotations by consultants and contractors, through regular sharing sessions and attending relevant courses," it said.
An information technology system will be set up by the end of this year to improve contract administration, it added.
2. National Parks Board
What AGO found:
- AGO found possible irregularities in quotations provided for 97 out of 115 star-rate items, totalling S$1.5 million, or 69 per cent of the items’ total value
- The items were under a S$11.43 million construction contract to develop a park connector. The construction project was managed by consultants engaged by NParks
- AGO’s report stated that there was inadequate assurance that value for money had been obtained for the star-rate items
- It also highlighted several issues of possible overpayment to NParks' contractors, which amounted to an estimated total of S$1.93 million
Responding to AGO’s report, NParks said that it has taken extra steps to improve its management of star-rate items, including enhancing consultancy tenders to require independent quotes and conducting training sessions to boost the competency of its staff members.
It is also exploring the use of technology to better detect irregularities and verify the authenticity of quotations provided by contractors and consultants.
ABUSE OF LEAVE, AUDIT DOCUMENTS GAVE 'FALSE IMPRESSION'
What AGO found:- Out of a total disbursement of S$327.72 million for the government-paid maternity and paternity leave administered by MSF, AGO identified possible abuse in 55 cases involving 32 parents, amounting to S$1.16 million
- Unusual withdrawals from Child Development Accounts (CDAs) by three parents or trustees. These involved 85 withdrawals totalling S$28,900 within short periods, some of which were used at an optical shop for “adult-sized sunglasses” and pharmacies
- There were signs that two receipts provided as audit documentation for CDA withdrawals could have been created and backdated, which gave a false impression that proper records were kept
- AGO also found possible misuse of CDA funds due to incorrect tagging of CDA withdrawals by an institution which is approved to use such funds
The CDA is a special savings account, which can be used for a child's educational and healthcare expenses through electronic payment modes Giro or Nets at approved institutions as part of the Baby Bonus scheme.
In its response, MSF said that it has made multiple police reports over these lapses and irregularities, and it took a "very serious view" of the falsification of documents.
The ministry informed AGO that regular data analytics reports have been introduced to detect and investigate anomalous transactions and that regular audits of approved institutions will be carried out.
"To prevent future cases of fraud and abuse, MSF has enhanced capabilities for detection, investigation and enforcement.
"This includes system checks to flag suspicious (government-paid leave) claims and to route them for additional verification and investigation, which may result in longer processing times for non-straightforward claims," MSF said.
On the incorrect tagging of CDA funds, it said that it is collaborating with Nets to enhance procedures for onboarding, maintenance and de-registration of approved institutions while increasing audits to ensure that transactions comply with authorised uses.
NYP'S FIRE HYDRANT TEST AUTHENTICITY DOUBTED
What AGO found:- Two fire hydrant annual test reports submitted by NYP's maintenance contractor may not be authentic
- These reports documented readings such as running pressure and flow rate for fire hydrants on the polytechnic's premises in Yio Chu Kang
- AGO expressed concerns that the required testing and checks of the fire hydrants covered by these reports may not have been properly conducted before payments were authorised under the maintenance contract
In response to AGO's findings, NYP said that it would investigate the matter and filed a police report.
The polytechnic added that it would also engage an independent vendor to perform further testing of fire hydrants, aiming to ensure enhanced safety for the campus community.
PASS MISUSE AT ACTIVESG FACILITIES
AGO’s report uncovered lapses in revenue and collections management at SportSG.It said that the agency lacked sufficient controls over admissions to ActiveSG pools and gyms, resulting in abuse of passes.
- Members shared non-transferable passes with others to gain unauthorised access to facilities, and improperly used discounted passes
- The accounts of 18 deceased members were also used for 283 admissions to ActiveSG pools and gyms. Some of the members had been dead for as long as 4.8 years
- Of the 18 accounts, one had been used for 201 admissions
- Such control weaknesses would result in revenue leakage for SportSG, the report said
Singpass is the digital system holding the personal identification data of Singapore residents, allowing them to access e-services.
Additionally, SportSG has also implemented guides and checklists to ensure that staff members are clear on the processes where manual checks are required.
The agency did not state if any police reports were made over the lapses.
