The Aljunied-Hougang Town Council (AHTC) saga continues, with KMPG releasing its latest report that covers AHTC’s payment transactions from May 2011 to November 2015.

One thing that stood out in the 68-page report by the auditors was how many times the word "criminal" was used.

It was mentioned a total of 16 times, with the report defining what a "Criminal Breach of Trust" entails.

"Whoever, being in any manner entrusted with property, or with any dominion over property, dishonestly misappropriates or converts to his own use that property, or dishonestly uses or disposes of that property in violation of any direction of law prescribing the mode in which such trust is to be discharged, or of any legal contract, express or implied, which he has made touching the discharge of such trust, or wilfully suffers any other person to do so, commits “criminal breach of trust".

AHTC appointed KPMG in compliance with the Order of the Court of Appeal to establish "whether any past payments made by AHPETC were improper and ought therefore to be recovered".

KPMG did note that their work "was not focused on identifying potential criminal acts arising from the issues we observed, we are advised that, had the shortcomings (identified in) this report been committed deliberately, they could amount to criminal conduct, the implications of which the town council should consider."

In the report, KPMG highlighted that failure in governance that resulted in improper payments made to AHTC's former managing agent FM Solutions & Services (FMSS) and service provider FM Solutions and Integrated Services (FMSI).

These improper payments, according to KPMG, may lead to "the potential for actual misappropriation and civil or criminal breach of trust" if it is deliberate.

Such examples include 1) at least $23 million being approved by town council members with a conflict of interest; and 2) improper payments of up to $1.5 million, of which at least $600,000 ought to be recovered.

Other examples of improper payments include "overpayments to FMSS for project management fees, overpayments to FMSS for purported overtime and CPF contributions, payments to FMSS without certification that work had been performed, as well as payments to FMSS that were made without FMSS and FMSI in a control environment in which meaningful oversight by the Town Councillors was absent".

AHTC has responded immediately by saying that it "is studying the report and will provide a response in due course".

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