Findings from PwC report
Further scrutiny and potential recovery action may strengthen financial accountability for estate management funds, supporting resident confidence in the governance of public housing estates.
PwC found improper Punggol East-related payments and regulatory breaches by AHPETC, prompting HDB to refer its 30 April 2017 report for possible recovery and legal action.
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The latest findings from PricewaterhouseCoopers LLP (PwC) in its review of past payments made by then-Aljunied-Hougang-Punggol East Town Council (AHPETC) reinforce our concerns regarding how public funds under the Town Council’s charge had been managed.
PwC had been appointed by Pasir Ris-Punggol Town Council (PRPTC) as its independent accountant, to review the past payments made by then-AHPETC in relation to Punggol East (PE) SMC. Following the completion of the review, PRPTC has submitted a copy of PwC’s report, dated 30 April 2017, to HDB.
Similar to the earlier KPMG report of 31 October 2016, the PwC report raised questions on the propriety of payments made by then-AHPETC to its Managing Agent FM Solutions and Services Pte Ltd. With regard to PE-related expenses and contracts, the report found improper payments and highlighted several regulatory breaches made by AHPETC. The report also raised the possibility of civil and criminal liabilities, and highlighted the need for further investigations as to the relevant potential offences.
HDB will forward the PwC report to the Independent Panel that was appointed by Aljunied-Hougang Town Council in February 2017, so that it can consider what recovery and legal actions are necessary and appropriate.