# MND’s 12 May 2015 response to media queries on AHPETC’s failure to take up half of 2014/2015 grants

- **Source:** Ministry of National Development
- **Published:** 2015-05-12T04:30:00.000Z
- **Author:** Ministry of National Development
- **Original:** https://www.mnd.gov.sg/newsroom/press-releases/view/mnd-s-12-may-2015-response-to-media-queries-on-ahpetc-s-failure-to-take-up-half-of-2014-2015-grants
- **Topics:** Government & Policy

## Featured rationale

The unresolved grant and missed sinking-fund transfers could constrain resources for compliant estate operations and maintenance, potentially affecting residents’ confidence in municipal financial management.

## AI summary

MND said AHPETC did not accept its conditional offer of half the FY2014/15 S&CC Operating Grant while the AGO audit remained underway.

## Original article

In response to media queries, MND confirms that even before the AGO audit was completed, MND had offered, in response to Ms Sylvia Lim's appeal, to disburse half of the FY2014/15 Service and Conservancy Charge (S&CC) Operating Grant to AHPETC. However, AHPETC failed to take up the offer. Here is the sequence of events: 

• On 28 April 2014, MND wrote to Ms Sylvia Lim: “MND is considering to withhold the FY14/15 S&CC Operating Grant until the conclusion of the audit by the Auditor-General. Right now, we do not have reasonable assurance of proper financial management and keeping of accounts by AHPETC. Before we do so, we want to know whether AHPETC has any views or concerns as regards the proposed withholding of the above S&CC Operating Grant. If there are, you must let us have AHPETC’s views or concerns in writing for our consideration no later than 10 working days after you have received this letter (i.e. by 14 May 2014).” Ms Sylvia Lim did not reply to MND by 14 May 2014. 

• More than a month later, on 16 June 2014, Ms Sylvia Lim wrote to MND, stating: “the continued withholding of the grant to AHPETC is likely to critically and adversely affect the TC’s cash flow position, resulting in a disruption of essential services to the town because the TC would not be able to pay its contractors…We call on the Ministry to disburse without further delay the Operating Grant it has withheld from AHPETC.” 

• On 20 June 2014, MND replied to Ms Sylvia Lim that it was prepared to “reconsider the withholding of grant, to take into account the impact, if any, this may have on the TC’s provision of essential services to the town.” Following this, MND and AHPETC had a series of exchanges to clarify AHPETC’s cash flow position. 

• On 7 October 2014, MND informed Ms Sylvia Lim that MND was “deeply concerned about the TC’s financial situation based on the information you provided and we would like to work with you to see how we can help the TC sustain its operations and avoid disruption of essential services to residents. We are prepared to consider, as an exceptional measure, releasing half the operating grant to AHPETC while the AGO audit is still on-going”. This would be subject to conditions such as Ms Lim ensuring that the TC makes all the necessary transfers to the Sinking Fund for the entire Financial Year as required under the Town Councils Act and the Town Councils Financial Rules, and Ms Lim confirming and declaring that the statements on AHPETC’s financial accounts she earlier provided to MND was true. MND did not receive any reply from Ms Sylvia Lim. 

• On 5 November 2014, Mr Low Thia Khiang told the media that the TC had no cash flow problem. 

• A week later, on 12 November 2014, Ms Sylvia Lim informed MND: “I would like to inform you that the figures given in my letters of 30 July 2014 and 13 Aug 2014, while correct based on information at the time, will need updating. We are assessing the situation and will reply substantively to your letter of 7 Oct 2014 should we wish to take the option of the half-grant while awaiting the conclusion of the AGO audit.” Ms Sylvia Lim had not gotten back to MND since then. 

• On 12 February 2015, Ms Sylvia Lim told Parliament: “The Town Council accepts that it should have transferred the full amounts due to the sinking funds each quarter and should have paid sinking fund expenses directly from the sinking fund accounts. We have taken steps and made good the transfers… We have also done the transfers for FY2013 and have been making transfers for FY2014.” 

• On 27 March 2015, during the Pre-Trial Conference, Ms Sylvia Lim repeatedly assured the Judge that AHPETC did not urgently need fresh grants from MND, as AHPETC had sufficient funds for at least the next 3 months. Ms Lim’s lawyer also told the Judge, after checking with Ms Sylvia Lim: “I have spoken to my client … they have not pursued the MND to release … the grants … because they don’t need the funds. They are okay … they can manage.” 

• Yet, on 4 and 5 May 2015, it was revealed in Ms Sylvia Lim’s sworn affidavit, signed 17 April 2015, and in front of the Judge, that AHPETC had not made two out of the four mandatory quarterly transfers to the Sinking Fund for FY14/15, and even the two transfers it did make (for 1Q/2QFY14) were late. AHPETC also admitted that the TC would need the S&CC grants in order to operate in accordance with the law, and to make its Sinking Fund contributions. This was contrary to what Ms Sylvia Lim had told Parliament during the February 2015 Parliamentary debate on the AGO report, and what she and AHPETC’s lawyer told the Judge on 27 March 2015.

## Chinese translation

> Translation model: grok_cli

### 国家发展部2015年5月12日就阿裕尼—后港市镇理事会未领取2014/2015年度一半补助金回应媒体询问

针对媒体询问，国家发展部确认：即使在审计总长公署（AGO）审计完成之前，国家发展部已应林瑞莲女士的诉求，提出向阿裕尼—后港市镇理事会（AHPETC）发放2014/15财政年度服务与杂费（S&CC）运营补助金的一半。然而，阿裕尼—后港市镇理事会未能接受该提议。事件时序如下：

• 2014年4月28日，国家发展部致函林瑞莲女士：“国家发展部正考虑扣留2014/15财政年度S&CC运营补助金，直至审计总长完成审计。目前，我们无法合理确信阿裕尼—后港市镇理事会具备妥善的财务管理与账目保管。在作出决定之前，我们希望了解阿裕尼—后港市镇理事会对上述拟议扣留S&CC运营补助金是否有任何意见或顾虑。如有，你必须在收到本函后不迟于10个工作日（即2014年5月14日或之前）以书面形式向我们提出阿裕尼—后港市镇理事会的意见或顾虑，以供我们考虑。”林瑞莲女士未在2014年5月14日或之前回复国家发展部。

• 一个多月后，2014年6月16日，林瑞莲女士致函国家发展部，称：“持续扣留对阿裕尼—后港市镇理事会的补助金，可能严重不利地影响该市镇理事会的现金流状况，导致无法向承包商付款，从而中断对市镇的基本服务……我们呼吁部里立即发放其扣留的对阿裕尼—后港市镇理事会的运营补助金，不得再拖延。”

• 2014年6月20日，国家发展部回复林瑞莲女士，表示准备“重新考虑扣留补助金，以顾及此举对市镇理事会向市镇提供基本服务可能造成的任何影响。”此后，国家发展部与阿裕尼—后港市镇理事会就澄清该市镇理事会的现金流状况进行了一系列往来。

• 2014年10月7日，国家发展部告知林瑞莲女士，国家发展部“根据你提供的信息，对市镇理事会的财务状况深感关切，我们希望与你合作，研究如何协助该市镇理事会维持运作并避免中断对居民的基本服务。我们准备作为特别措施，考虑在审计总长公署审计仍在进行期间，向阿裕尼—后港市镇理事会发放一半运营补助金”。这将附带条件，例如由林女士确保市镇理事会按照《市镇理事会法令》及《市镇理事会财务规则》的要求，为整个财政年度向储备金作出所有必要转账，以及林女士确认并声明其较早前向国家发展部提供的有关阿裕尼—后港市镇理事会财务账目的陈述属实。国家发展部未收到林瑞莲女士的任何回复。

• 2014年11月5日，刘程强先生告诉媒体，该市镇理事会没有现金流问题。

• 一周后，2014年11月12日，林瑞莲女士告知国家发展部：“我想通知你，我在2014年7月30日及2014年8月13日信函中给出的数字，虽基于当时信息属正确，但需要更新。我们正在评估情况，若我们希望在等待审计总长公署审计结束期间选择领取一半补助金，将就你2014年10月7日的来函作出实质性回复。”此后林瑞莲女士再未回复国家发展部。

• 2015年2月12日，林瑞莲女士在国会表示：“市镇理事会承认，其本应每季度向储备金转拨应付的全额款项，并应从储备金账户直接支付储备金开支。我们已采取措施并补足了转账……我们也已完成2013财政年度的转账，并一直在为2014财政年度进行转账。”

• 2015年3月27日，在审前会议期间，林瑞莲女士多次向法官保证，阿裕尼—后港市镇理事会并不急需国家发展部的新补助金，因为该市镇理事会至少在接下来3个月内有充足资金。林女士的律师在与林瑞莲女士核对后也告诉法官：“我已与我的当事人谈过……他们没有追着国家发展部发放……补助金……因为他们不需要这些资金。他们没问题……他们应付得来。”

• 然而，在2015年5月4日及5日，根据林瑞莲女士于2015年4月17日签署的宣誓书，并在法官面前披露：阿裕尼—后港市镇理事会在2014/15财政年度四次强制性季度储备金转账中，有两次未作转账，即便所作的两次转账（2014财政年度第1季/第2季）也已逾期。阿裕尼—后港市镇理事会亦承认，该市镇理事会需要S&CC补助金才能依法运作，并履行其储备金缴款。这与林瑞莲女士在2015年2月国会就审计总长公署报告进行辩论时所言，以及她与阿裕尼—后港市镇理事会律师在2015年3月27日向法官所言相悖。