First, we heard that the Aljunied-Hougang Town Council payment transactions from May 2011 to November 2015 are "improper" and may be perceived as criminal conduct if deliberate (KPMG report on Nov 1).

Then, we heard that the report is more detailed but remains inconclusive (Workers' Party chief Low Thia Khiang, Nov 2).

Now, the authorities have spoken.

The Ministry of National Development (MND) and the Housing Development Board (HDB) have indicated that the findings by KPMG are serious. They are now asking AHTC to appoint a "suitable third party" to "recover the monies which have been lost", including taking legal actions where necessary.

Below is the full statement by MND on Nov 5:

MND is deeply concerned with the latest findings in the KPMG report (“the Report”) on its review of past payments made by the Aljunied-Hougang Town Council (AHTC).

The Report found serious legal and other regulatory breaches, and improper payments made from Town Council funds running into millions of dollars. The Report also identified the possibility of criminal conduct.

These findings by KPMG are serious. There has been a significant loss of public monies.

To protect residents’ interests, steps must be taken to recover the monies which have been lost, and to ensure that those who acted wrongfully are held to account. HDB has, today, sent a letter to AHTC, asking it to confirm that it will appoint a suitable third party to take steps, on the Town Council’s behalf, to recover the monies which have been lost, including, where necessary, legal actions.

The Government is also considering what other steps are necessary in view of the concerns highlighted by KPMG, in relation to the way some of the Town Councillors have behaved, in dealing with public funds.

HDB's letter to AHTC Chairman Pritam Singh was published by the Straits Times.

In the letter, HDB asked Pritam to "confirm within seven days" whether he would "agree to an appointment of a suitable third party to follow through to recover these amounts".

Related Articles:

KPMG’s report on Aljunied-Hougang Town Council’s so serious, the word “criminal” was mentioned

Low Thia Khiang kind of responded to KPMG report & whole saga looks likely to go on until next GE

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