Auditor-General’s report uncovers significant lapses in Singapore ministries and statutory boards

The Auditor-General’s Office (AGO) has published its annual report for the financial year 2023/2024, revealing substantial lapses in financial governance and compliance among various public sector entities. The audit, conducted in accordance with international standards, aims to ensure accountability and transparency in the use of public funds.

The AGO’s audit uncovered several instances of non-compliance and inefficiency across multiple ministries and statutory boards:

Ministry of Education (MOE)

• Lapses in Contract Management: AGO identified significant issues in contract management, with approvals for 45 out of 71 contract variations obtained after the variation works had commenced or were completed. This led to potential overpayments totaling S$317,100. In one instance, payments amounting to S$49,400 were made for 900 student lockers that were not installed.
• Long Delays in Finalisation of Accounts: The finalisation of accounts for 20 construction contracts was delayed, ranging from 2 months to more than 3 years, affecting the cash flow of contractors. These delays undermine financial discipline and the efficiency of project completions.
• Improper Contract Management: For example, in the construction of two primary schools and a junior college, payments for works that were not carried out according to contractual requirements amounted to an estimated overpayment of S$218,400. Additionally, MOE’s failure to obtain timely approvals for contract variations resulted in a lack of transparency and oversight.

Ministry of Home Affairs (MHA)

• Weaknesses in Inventory and Records Management: AGO found discrepancies in the inventory records for Singapore Civil Defence Force (SCDF) and Singapore Police Force (SPF) equipment. There were instances where inventory belonging to SCDF could not be found or was placed incorrectly, and similar issues were noted with SPF inventory, indicating systemic weaknesses in inventory management.
• Incorrect Payments of Performance Bonus Incentive: Payments were made incorrectly to a vendor due to errors in the bonus incentive calculation, resulting in overpayments totaling S$151,900 and underpayments totaling S$84,300 for the period from January 2020 to September 2023.
• Inventory Management Weaknesses: The audit revealed that SCDF’s inventory records did not accurately reflect the physical inventory, leading to potential risks of mismanagement or loss of essential equipment. Similar issues were found in SPF’s inventory records, where discrepancies ranged from misplaced items to erroneous record-keeping.

Ministry of Communications and Information (MCI)

• Lack of Clarity in Evaluation Criterion: The Info-communications Media Development Authority (IMDA) had unclear evaluation criteria in its Requests for Quotation (RFQ), which affected the transparency and fairness of the procurement process. In one case, the absence of clear criteria led to a vendor being awarded a contract despite not being the lowest bidder, raising concerns about the integrity of the evaluation process.
• RFQ Evaluation Issues: In the case of IMDA, a significant contract for a study was awarded based on unclear and unpublished evaluation criteria, which undermined the principles of transparency and fair competition. This lack of clarity potentially affected the quality and cost-effectiveness of the awarded contract.

Ministry of Culture, Community and Youth (MCCY)

• Lapses in Tender Evaluation and Procurement: Sport Singapore (SportSG) showed significant lapses in tender evaluation for vending machine contracts and procurement of manpower services. SportSG also had inadequate controls over admissions to ActiveSG pools and gyms, resulting in revenue leakages due to misuse of admission passes.
• Tender Evaluation Lapses: SportSG’s evaluation of vending machine contracts excluded several tender proposals without basis on the published criteria, leading to questions about the fairness of the process. Furthermore, admissions to ActiveSG pools and gyms were abused by members using special passes they were not eligible for, causing revenue losses.

Ministry of National Development (MND)

• Lapses in Contract Management: The Building and Construction Authority (BCA) exhibited weak oversight over conflict of interest declarations and lapses in contract management. BCA’s failure to monitor contractor performance adequately led to poor maintenance of facilities and potential overpayments.
• Lapses in Valuations and Payments: National Parks Board (NParks) had significant lapses in valuations and payments for works orders, including instances of duplicate payments and potential overpayments estimated at S$1.93 million.
• Conflict of Interest Declarations: BCA failed to ensure that conflict of interest declarations were properly managed, with multiple instances of incomplete or missing declarations. This oversight risked compromising the integrity of the grant evaluation process.
• Payment for Undone Works: NParks was found to have made full payments for works not performed as per the works orders, leading to potential overpayments estimated at S$1.93 million. These lapses indicate a need for stricter contract monitoring and evaluation processes.

Ministry of Trade and Industry (MTI)

• Lapses in Management of Vehicle Maintenance Contracts: Sentosa Development Corporation (SDC) failed to ensure that vehicle maintenance was performed as scheduled. The AGO found that the contractor had created job sheets for works not performed, indicating serious lapses in contract compliance and management.
• Vehicle Maintenance Contracts: The audit of SDC revealed that the contractor failed to perform scheduled vehicle maintenance jobs. AGO’s findings suggested that job sheets were possibly falsified, highlighting serious lapses in contract management and compliance.

The AGO report underscores the importance of stringent financial governance and effective oversight mechanisms within public sector entities. The identified lapses highlight areas for improvement to ensure the judicious use of public funds and maintain public trust in governmental operations.

The Ministry of Finance (MOF) has pledged to address these issues by enhancing training for public officers, enforcing stricter procurement guidelines, and implementing robust IT security protocols.