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MND applies to court for independent accountants to ‘safeguard’ grants to AHPETC

A sign leading to the Aljunied-Hougang-Punggol East Town Council office, in February 2015. (Yahoo file photo)

The Ministry of National Development (MND) on Friday applied to the court for the appointment of independent accountants to safeguard Service and Conservancy Charges (S&CC) grants that are to be disbursed to the opposition-run Aljunied-Hougang-Punggol East Town Council (AHPETC).

“Earlier (in June 2014), AHPETC had written to request MND to disburse the Service and Conservancy Charges (S&CC) Operating Grant for FY 2014 ‘without further delay’, stating that 'the continued withholding of the grant to AHPETC is likely to critically and adversely affect the TC’s cash flow position',” MND said in a statement.

“But before MND does so, there must be adequate safeguards to ensure that AHPETC accounts for and manages these grants properly,” the ministry added.

According to The Strait Times, the government disburses grants -- about $7 million in total annually -- to all town councils.

If the court application is granted, independent accountants will be appointed to “safeguard” the disbursed S&CC grants for both FY14 and FY15.

AHPETC will also be required to keep the grants in segregated accounts. Payments exceeding certain thresholds will be co-signed by independent accountants.

MND has also asked the court to allow the accountants to look at AHPETC’s past payments and take appropriate action to recover losses.

“The independent accountants, however, will not take over the operations of AHPETC, nor will they seek to remedy the problems identified by AGO and AHPETC’s auditors. These remain the responsibility of AHPETC’s town councillors,” it said.

More on the AHPETC saga here:

What you need to know about the AHPETC saga