Current Affairs
More than 10 years of omissions in financial statements submissions by People’s Association
More than 10 years of financial omissions by People’s Association in its reports
The People’s Association (PA) has had the ratings of “adverse opinion” given to its annual audits by its auditors for the years 2008 to 2011, reported website TRE Emeritus.
Adverse opinion – A professional opinion made by an auditor indicating that a company’s financial statements are misrepresented, misstated, and do not accurately reflect its financial performance and health. Adverse opinions are usually given after an auditor’s report, which can be internal or independent of the company
However, The Online Citizen has viewed the annual reports of the People’s Association (PA), from the years of 2001 to 2010.
In all these years, the PA’s auditors made some observations and noted that the financial statements of related organizations of the PA had omitted providing financial statements to the auditors.
As such, the financial statements of the PA did not include the statements of its related organizations, such as community clubs and community centres.
For financial years 2010-2012, the PA only presented “financial highlights” in their reports.
“In other words, the financial reports became just financial summaries,” said TRE Emeritus.
The PA is a statutory board under the Ministry of Culture, Community and Youth (MCCY).
The chairman of the PA is Prime Minister Lee Hsien Loong.
We present here extracts of remarks and observations by the auditors engaged by the PA of the financial ratings from the financial year (FY) 2001 to 2010:
FY01/02
- Auditor KPMG noted the omission of the financial statements of the community centres and community clubs.
FY02/03
- Auditor KPMG noted the omission of the financial statements of the community centres and community clubs.
FY03/04
- Auditor KPMG noted the omission of the financial statements of the community centres and community clubs.
FY04/05
- Singapore Financial Reporting Standards (FRS) were introduced by MOF and PA, as a stat board, have to comply.
- Auditor changed to Price Waterhouse Cooper (PWC)
- Auditor PWC noted the omission of the financial statements of the community centres and community clubs, which are required by FRS Standard 27.
FY05/06
- Auditor PWC noted the omission of the financial statements of the community centres and community clubs, which are required by FRS Standard 27 (revised 2004)
- This time, PWC used stronger language but stopped short of an adverse opinion:
“[Because] of the significance of the matters referred to in the paragraphs above, and their potential impact to the financial statements, the accompanying financial statements do not present fairly, in accordance with the provision of the People’s Association Act, Chapter 227 (“the Act”) and Singapore Financial Reporting Standards, the state of affairs of the Association as at 31 March 2006 …”
- First time the term GRO is used in the annual report, p.49 provides a full breakdown of all the organisations that make up the GROs.
FY06/07
- Auditor PWC took another step forward and issued an adverse opinion on the omission of GROs’ financial statements.
FY07/08
- Auditor PWC issued an adverse opinion on the omission of GROs’ financial statements.
FY 08/09
- Auditor PWC issued an adverse opinion on the omission of GROs’ financial statements.
FY 09/10
- Auditor changed to KPMG
- Auditor KPMG issued an adverse opinion on the omission of GRO’s financial statements
No more published detailed financial statements in FY 2010/11 and onwards till date, instead a consolidated financial statement is presented in its annual report. However, its revealed by one of the local news agency that in 2010/2011, the PA was also given an “adverse opinion” rating.
This is not an accusation of any wrongdoing by PA. In fact, the auditors make it clear, in every FY’s report, that there was no suspicion of any wrongdoing.
The key questions are:
- From corporate governance/accounting principle standpoint, is it a good practice to omit the financial statements of GROs since FY01/02?
- PA in its media release, promises to set things right in FY13 (report due March 2014). FRS was introduced in FY04. PA made a parliamentary reply in 2008 that there was nothing wrong with the GROs’ accounts. Why did PA say it will comply in its next financial report?
And this after all these years?
If not for the news report, no one would have known that PA’s 2010/11 was an adverse opinion as well.
PA should once again put out its financial statement in the open for public scrutiny instead of presenting consolidated financial statements without transparency.
____________________
Evidence to substantiate the above points attached.
Current Affairs
Reforming Singapore’s defamation laws: Preventing legal weapons against free speech
Opinion: The tragic suicide of Geno Ong, linked to the financial stress from a defamation lawsuit, raises a critical issue: Singapore’s defamation laws need reform. These laws must not be weaponized to silence individuals.
by Alexandar Chia
This week, we hear the tragic story of the suicide of Geno Ong, with Ong citing the financial stress from the defamation lawsuit against her by Raymond Ng and Iris Koh.
Regardless of who’s right and who’s wrong, this Koh/Ng vs Ong affair raises a wider question at play – the issue of Singapore’s defamation laws and how it needs to be tightened.
Why is this needed? This is because defamation suits cannot be weaponised the way they have been in Singapore law. It cannot be used to threaten people into “shutting up”.
Article 14(2)(a) of the Constitution may permit laws to be passed to restrict free speech in the area of defamation, but it does not remove the fact that Article 14(1)(a) is still law, and it permits freedom of speech.
As such, although Article 14(2)(a) allows restrictions to be placed on freedom of speech with regard to the issue of defamation, it must not be to the extent where Article 14(1)(a)’s rights and liberties are not curtailed completely or heavily infringed on.
Sadly, that is the case with regard to precedence in defamation suits.
Let’s have a look at the defamation suit then-PM Goh Chok Tong filed against Dr Chee Soon Juan after GE 2001 for questions Dr Chee asked publicly about a $17 billion loan made to Suharto.
If we look at point 12 of the above link, in the “lawyer’s letter” sent to Dr Chee, Goh’s case of himself being defamed centred on lines Dr Chee used in his question, such as “you can run but you can’t hide”, and “did he not tell you about the $17 billion loan”?
In the West, such lines of questioning are easily understood at worse as hyperbolically figurative expressions with the gist of the meaning behind such questioning on why the loan to Suharto was made.
Unfortunately, Singapore’s defamation laws saw Dr Chee’s actions of imputing ill motives on Goh, when in the West, it is expected of incumbents to take the kind of questions Dr Chee asked, and such questions asked of incumbent office holders are not uncommon.
And the law permits pretty flimsy reasons such as “withdrawal of allegations” to be used as a deciding factor if a statement is defamatory or not – this is as per points 66-69 of the judgement.
This is not to imply or impute ill intent on Singapore courts. Rather, it shows how defamation laws in Singapore needs to be tightened, to ensure that a possible future scenario where it is weaponised as a “shut-up tool”, occurs.
These are how I suggest it is to be done –
- The law has to make mandatory, that for a case to go into a full lawsuit, there has to be a 3-round exchange of talking points and two attempts at legal mediation.
- Summary judgment should be banned from defamation suits, unless if one party fails to adduce evidence or a defence.
- A statement is to be proven false, hence, defamatory, if there is strictly material along with circumstantial evidence showing that the statement is false. Apologies and related should not be used as main determinants, given how many of these statements are made in the heat of the moment, from the natural feelings of threat and intimidation from a defamation suit.
- A question should only be considered defamatory if it has been repeated, after material facts of evidence are produced showing, beyond reasonable doubt, that the message behind the question, is “not so”, and if there is a directly mentioned subject in the question. For example, if an Opposition MP, Mr A, was found to be poisoned with a banned substance, and I ask openly on how Mr A got access to that substance, given that its banned, I can’t be found to have “defamed the government” with the question as 1) the government was not mentioned directly and 2) if the government has not produced material evidence that they indeed had no role in the poisoning affair, if they were directly mentioned.
- Damages should be tiered, with these tiers coded into the Defamation Act – the highest quantum of damages (i.e. those of a six-figured nature) is only to be reserved if the subject of defamation lost any form of office, revenue or position, or directly quantifiable public standing, or was subjected to criminal action, because of the act of defamation. If none of such occur, the maximum amount of damages a plaintiff in a defamation can claim is a 4-figure amount capped at $2000. This will prevent rich and powerful figures from using defamation suits and 6-figure damages to intimidate their questioners and detractors.
- All defendants of defamation suit should be allowed full access to legal aid schemes.
Again, this piece does not suggest bad-faith malpractice by the courts in Singapore. Rather, it is to suggest how to tighten up defamation laws to avoid it being used as the silencing hatchet.
Current Affairs
Man arrested for alleged housebreaking and theft of mobile phones in Yishun
A 23-year-old man was arrested for allegedly breaking into a Yishun Ring Road rental flat and stealing eight mobile phones worth S$3,400 from five tenants. The Singapore Police responded swiftly on 1 September, identifying and apprehending the suspect on the same day. The man has been charged with housebreaking, which carries a potential 10-year jail term.
SINGAPORE: A 23-year-old man has been arrested for allegedly breaking into a rental flat along Yishun Ring Road and stealing eight mobile phones from five tenants.
The incident occurred in the early hours on Sunday (1 September), according to a statement from the Singapore Police Force.
The authorities reported that they received a call for assistance at around 5 a.m. on that day.
Officers from the Woodlands Police Division quickly responded and, through ground enquiries and police camera footage, were able to identify and apprehend the suspect on the same day.
The stolen mobile phones, with an estimated total value of approximately S$3,400, were recovered hidden under a nearby bin.
The suspect was charged in court on Monday with housebreaking with the intent to commit theft.
If convicted, he could face a jail term of up to 10 years and a fine.
In light of this incident, the police have advised property owners to take precautions to prevent similar crimes.
They recommend securing all doors, windows, and other openings with good quality grilles and padlocks when leaving premises unattended, even for short periods.
The installation of burglar alarms, motion sensor lights, and CCTV cameras to cover access points is also advised. Additionally, residents are urged to avoid keeping large sums of cash and valuables in their homes.
The investigation is ongoing.
Last month, police disclosed that a recent uptick in housebreaking incidents in private residential estates across Singapore has been traced to foreign syndicates, primarily involving Chinese nationals.
Preliminary investigations indicate that these syndicates operate in small groups, targeting homes by scaling perimeter walls or fences.
The suspects are believed to be transient travelers who enter Singapore on Social Visit Passes, typically just a day or two before committing the crimes.
Before this recent surge in break-ins, housebreaking cases were on the decline, with 59 reported in the first half of this year compared to 70 during the same period last year.
However, between 1 June and 4 August 2024, there were 10 reported housebreaking incidents, predominantly in private estates around the Rail Corridor and Bukit Timah Road.
The SPF has intensified efforts to engage residents near high-risk areas by distributing crime prevention advisories, erecting alert signs, and training them to patrol their neighborhoods, leading to an increase in reports of suspicious activity.
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