'Rigorous framework' in place for managing contractors: MINDEF
Singapore’s Ministry of Defence (MINDEF) says it has a “rigorous framework” for managing outsourced goods and services, to protect the country’s operational and security interests.
“Like all government agencies, MINDEF uses commercial contracts for a wide range of goods and services. Only contracts for non-sensitive goods and services will be put up for open tender with the objective of getting the best value for the defence dollar,” said MINDEF on Tuesday (5 September) in response to media queries.
The statement comes as Chinese conglomerate HNA Group finalises its US$1 billion (S$1.4 billion) purchase of Singapore-listed logistics firm CWT Limited, which provides maintenance services for Singapore Armed Forces (SAF) vehicles. It will seek shareholder approval for the purchase at a general meeting on Thursday.
CWT helps maintain both military and commercial vehicles, including tonners, Land Rovers, tractors, cranes and forklifts. The MINDEF statement added that “the platforms and equipment CWT currently handles are non-sensitive in nature” and “do not contain sensitive military technology”.
“MINDEF ensures that all contractors who access our facilities possess the necessary security clearance. There are also measures to safeguard any information provided to vendors necessary for their performance of service,” the statement said.
When it comes to contracts involving sensitive goods and services, the ministry also has a “stringent system of controls” to safeguard its operational and security interests. As part of this system, MINDEF is empowered to review these contracts whenever contracted firms undergo changes of ownership.
“If there are any potential issues (or security concerns) arising from the change in ownership, MINDEF/SAF will address them through steps such as instituting more stringent contractual clauses,” said the ministry’s statement.
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