AGO: “Inadequate oversight” in contract managements, “lapses in evaluation” of tenders under MOE

In a report dated 3 July this year, the Auditor-General has revealed lapses in the spending of several ministries and government agencies, including, but not limited to, the Ministry of Defence (MINDEF), the Ministry of Education (MOE), and the People’s Association.

In the Auditor-General’s report, lapses were found in the spending under MOE.

Among them was the contract management of school development projects, in which MoE had engaged consultants to manage such projects.

Long delays in issuance of final accounts for all 30 school construction contracts, with final payments totalling up to $13.61 million, were part of the aforementioned lapses.

There were also cases where modifications to construction contracts were not properly managed, resulting in an estimated overpayment of S$154,900, said the AGO.

“Given these lapses, there was no assurance that MOE had exercised adequate oversight of its consultants on issuance of final accounts and management of contract variations as well as financial prudence in the use of public funds in these development projects,” it added.

In a statement on Tuesday, MOE said it is addressing the concerns raised by the AGO and is improving its internal processes, according to Channel NewsAsia.

“MOE acknowledges the importance of prompt issuance of final accounts in our school development projects. We are working with our consultants to issue the final accounts of all 14 outstanding contracts by end 2018,” it said.

The ministry is also recovering the overpayment of S$154,900 arising from contract variations, it said.

“Given these lapses, there was no assurance that MOE had exercised adequate oversight of its consultants on issuance of final accounts and management of contract variations as well as financial prudence in the use of public funds in these development projects,” it added.

In a statement on Tuesday, MOE said it is addressing the concerns raised by the AGO and is improving its internal processes.

“MOE acknowledges the importance of prompt issuance of final accounts in our school development projects. We are working with our consultants to issue the final accounts of all 14 outstanding contracts by end 2018,” it said.

The ministry is also recovering the overpayment of S$154,900 arising from contract variations, it said.