Court of Appeal: AHPETC had lapses in its procurement of services


On Friday (27 Nov 2015) the Court of Appeal released its findings on the Aljunied-Hougang Punggol East Town Council (AHPETC).

In it, the court ruled that the AHPETC is to appoint an accountant with HDB’s approval. This was to assist the AHPETC to identify the outstanding lapses involved.

7 other findings were also in its report:

  1. Related party transactions were not disclosed by the AHPETC in its financial statement.
  2. Lapses in the procurement of services from FM Solutions & Services (FMSS).
  3. AHPETC’s key officers were acting in clear conflict of interest in approving payment to FMSS.
  4. No steps were taken by AHPETC to recover amounts due as a result of wrong payments made.
  5. AHPETC had various other lapses in internal controls.
  6. AHPETC did not have a system to monitor its Service & Conservancy Charges (S&CC) charges accurately.
  7. AHPETC continues to be in non-compliance by failing to pay into the sinking fund.  The court ordered the AHPETC to do so within 3 months.


In response, the Ministry of National Development and the Housing and Development Board (HDB) said it welcomed the ruling by the Court of Appeal “which is in the interest of residents and will improve accountability of public funds.”


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Arthur Lee

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