Sea barriers in Singapore: Police Coast Guard was 'grossly overcharged'

Ong Dai Lin Today Online 14 Oct 11;

SINGAPORE - The latest audit by the Auditor-General's Office (AGO) has found "pervasive" lapses in two projects undertaken by the Police Coast Guard (PCG), resulting in the department "being grossly overcharged and making large payments for materials before delivery".

The AGO, which audits all government ministries, organs of state, 10 statutory boards and four government funds, focuses on internal controls over the management of public funds, such as payments and refund.

The PCG had engaged a project management company to manage the two projects - the supply of floating sea barriers and repair work on a coastal barrier.

"AGO's audit revealed irregularities at every stage of the projects," it said its latest report released yesterday.

In the supply of floating sea barriers, the PCG was overcharged by S$885,000 and exceeded the approved project budget of S$4.76 million, to S$5.73 million. During the project, at least S$1.65 million worth of materials were paid for before delivery. During AGO's audit last November - seven months after the payment - some of the materials were still not delivered. All the materials paid for were later accounted for in April. The AGO also observed "tell-tale signs of falsification in documents" provided to it by the project manager to support payments of S$2.64 million to a term contractor.

Irregularities of the same nature were also found in another S$1.13 million project by the PCG to repair a coastal barrier and it was likely to have been overcharged, said the AGO.

In response to Today's queries, a police spokesperson said the PCG has recovered S$1.81 million from both project contractors. The Commercial Affairs Department has also commenced investigations against the project manager from the project management company for possible falsification of survey reports and other documents. "Police has also commenced internal investigations into possible lapses by its staff," said a police spokesperson.

While the two projects deterred illegal landings, the Coast Guard commander, Senior Assistant Commissioner Teo Kian Teck, said: "There is no excuse for such lapses. Upon receiving the report, we set up a high-level team to look into various issues and have since taken corrective measures to prevent future occurrences."

The Ministry of Home Affairs has also issued a directive to guide all Home Team departments on the proper use of term contracts and to exercise greater vigilance in their dealings with contractors and project managers.

Auditor-General Lim Soo Ping felt "public agencies must not over-rely on external parties" to comply with government control procedures on procurement and payment. "They may not share the same values and instincts expected of public officers, with regard to financial prudence," he said. "Financial prudence cannot be outsourced."

Mr Lim noted that many lapses found in the audits of government ministries and statutory boards were in procurement. For example, the Land Transport Authority (LTA) was taken to task for not ensuring that the construction work done on the Kallang-Paya Lebar Expressway by its contractors is fully in compliance with contract specifications. It was also found to have awarded a S$2.16 million contract for a road camera system although the offer did not meet technical requirements specified.

Mr Lim observed that the lapses found were "largely due to administrative expediency taking precedence over financial prudence".

"The agencies concerned can do more to ensure adequate financial vigilance in their procurement and payment practices," he said.