Police investigating possible fraud over S$148,900 in quotations: PUB

The police are investigating possible fraudulent practices found in a construction contract for PUB.

In a Sep. 9 statement from PUB, the Auditor-General's Office (AGO) raised concerns over the authenticity of quotations provided for 23 out of 25 star rate items that were checked. These items amounted to a total value of S$148,900.

Star rate items refer to additional works due to changes in design or scope.

PUB said it has reported the matter to the police and investigation is ongoing.

In the statement, the national water agency added:

"PUB has measures in place to manage star rate items, including procedures on how star rates should be evaluated and supervisory checks to approve the rates.

However, we recognise that it may not be straightforward to identify irregularities immediately, especially for more complex cases or instances where signs are not obvious.

Moving forward, we will enhance the training of our officers to ensure that they are familiar with and adhere to the proper procurement processes, and to raise their awareness in identifying possible irregularities in quotations for star rate items."

Water quality at desalination plants not compromised at any time

Other issues regarding maintenance services contracts were also raised during AGO's audit.

These involved three private sector-operated desalination plants that cover PUB's water quality analysers.

PUB's analysers experienced technical issues at two of the plants, causing the malfunctioning of SMS alert systems and gaps in data transfer from the analysers over a 12-month period.

"However, PUB’s maintenance contracts did not cover maintenance of the alert systems and data transfer to PUB, and we acknowledge that the scope of the contracts should have been more comprehensive," the statement mentioned.

PUB became aware of the issues in mid-2023, and took action by engaging the original equipment manufacturer's authorised agent to resolve these issues and to develop longer-term solutions.

The analysers at the two plants were restored in late 2024, and since January 2025, PUB has linked all the analysers directly to an internal system.

PUB also assured the public that the water quality at the desalination plants was "not compromised at any point in time".

Lapses in biocide contract management

There were also lapses in contract management for the supply of biocide and chemicals.

Biocide is primarily used to control the midge population in reservoirs and waterways, explained PUB.

Additional charges due to poor monitoring

The standard operating procedure (SOP) requires purchase orders to be raised when biocide stock reaches a "specific trigger level".

However, lapses were identified during the monitoring and verification process of stock levels, resulting in delayed purchase orders.

As a result, an additional amount of about S$300,000 had to be forked out to replenish the stocks quickly.

PUB said: "To prevent recurrence, we have automated the monitoring of biocide stocks which sends out alerts when stocks fall below the trigger level."

As for disbursing payments to contractors without verifying their certificates, PUB said that it had ensured the quality of biocide and chemicals used in their operations, including through testing by accredited labs.

Disciplinary actions were also taken against PUB officers accountable for these lapses.

Altered documents

For the biocide supply contract, the audit found "possible irregularities" between the softcopy and hardcopy certificates of analysis that were submitted to PUB by the contractor.

However, an officer had supposedly asked the contractor to update the certificates to give the false impression that the full information had been provided on the active ingredient level in the biocide, and that the contractual requirements had been met.

PUB said it does not condone the alteration of documents furnished for audit and expects officers to conduct themselves with "integrity and professionalism".

"We have carried out and completed our internal investigation and taken disciplinary action against the officer involved.

PUB will use this incident to remind officers and highlight our stance against any alteration of documents."

Top image from PUB's website