On Friday, 13 February, Law Minister K Shanmugam clarified in parliament about the managing agent fee rates which he provided earlier to show that the fees for Aljunied Hougang Punggol East Town Council (AHPETC) are significantly higher.
"Ms Lim asked me yesterday if the table which I circulated showing that AHPETC pays FMSS significantly more per unit is correct.
I have verified the rates in the table that I gave, table three, are correct. These are the rates in the management agent contract that the town councils have signed with the respective managing agent.
AHPETC is the only town council where the MA rates charged or MA charges differential rates for residential and commercial rates. Some TCs in the past charged differential rates but all the MAs have since done away and applied fixed rates for both.
Ms Lim may have been mistaken to the MA rate with the S&CC charges paid by commercial units which may differ from the S&CC charges paid by residential units so the calculation that I have put out is correct and on a weighted average basis, AHPETC pays 1.6 million dollars more compared with other town councils."
Chairman for AHPETC, Ms Lim stood up to clarify on Mr Shanmugam's clarification.
"I would like to respond to what the Minister mentioned, I was not confused about whether it was S&CC rates or MA rates. My response was based on documents that we have seen from PAP town council managing agents stating very specifically that they charge a higher rate for commercial units compared to residential units so that is my clarification."
A document submitted earlier to TREmeritus shows that the fees for Pasir Ris-Punggol Town Council were different from what the Law Minister has presented in Parliament.
The rates shown in the documents are higher than the rates shown in the chart for Pasir Ris-Punggol Town Council and there is a difference of rates between the residential and commercial property.
Is it the same case in the other town councils?