Police investigate PUB contract lapses after AGO finds possible irregularities in audit report

Singapore’s police are investigating possible irregularities in a construction contract managed by national water agency PUB, following findings from the Auditor-General’s Office (AGO). The AGO’s financial year 2024–2025 report, released on 9 Sept, raised concerns over quotations for “star rate” items—components not listed in contracts but added at market rates.

AGO questions authenticity of quotations

AGO reported possible irregularities in 23 of 25 star rate items checked under a PUB construction contract for waterscape works. These items totalled S$148,900, representing 94 per cent of the value of all star rate items reviewed. The audit questioned the authenticity of quotations submitted and whether the agency had obtained value for money. Following these findings, PUB lodged a police report to investigate potential fraudulent practices. The contract in question had been managed by a consultant engaged by PUB. The agency stated it had procedures for evaluating star rates and supervisory checks in place but acknowledged that irregularities might not always be immediately apparent, particularly in complex cases.

Lapses in desalination plant analyser maintenance

AGO also highlighted deficiencies in PUB’s contract management concerning water quality analysers at three private sector-operated desalination plants. Under existing arrangements, private partners operate the plants and maintain analysers to monitor water quality. PUB installed its own analysers to cross-check readings before approving payments. The audit found several shortcomings:

• PUB’s alert system for analyser readings was not functioning.
• Contracts had insufficient scope to cover data and alert system troubleshooting.
• Delays occurred in rectifying the loss of PUB analyser data.

Technical issues at two plants left PUB’s analysers with malfunctioning SMS alert systems and incomplete data transfer over 12 months. PUB became aware of these problems in mid-2023 and began corrective actions. The analysers were restored in late 2024. Since Jan 2025, they have been linked directly to PUB’s internal system, allowing automated alerts and data transfer. PUB stressed that water quality was not compromised during this period, noting its analysers served as additional safeguards.

Biocide and chemical supply contracts under scrutiny

The AGO report also drew attention to PUB’s management of contracts for biocide and chemical supplies. Biocide is used to control midges in reservoirs and waterways, while chemicals serve water disinfection purposes. Key issues identified included:

• Payments made despite non-compliant certificates of analysis.
• Insufficient monitoring of biocide stock levels.
• Reliance on external laboratory testing without independent checks.

Due to lapses in monitoring, purchase orders were delayed, and PUB incurred an additional S$300,000 to replenish depleted biocide stocks. The agency has since automated stock monitoring, introducing alerts when levels fall below trigger points. PUB confirmed that laboratory testing confirmed the quality of biocide and chemicals received. It acknowledged procedural lapses and has since strengthened certificate verification processes.

Altered documents raise concern

The AGO audit noted irregularities between softcopy and hardcopy certificates of analysis for biocide supplies. Softcopy versions showed alterations to format, version numbers, and information, creating the impression that accredited laboratories had tested the active ingredient levels. According to AGO, such actions raise doubts about document authenticity and hinder audit effectiveness. PUB admitted that one of its officers had requested contractors update certificates, producing documents that falsely suggested compliance. It stressed that it does not condone document alteration, has concluded an internal investigation, and has taken disciplinary action against the officer involved.

PUB response and corrective measures

PUB stated that it accepted AGO’s findings and is committed to strengthening procurement oversight. It highlighted that disciplinary action had been taken against accountable officers. The agency added it would increase supervision of consultants and contractors, conduct training workshops, and reinforce standard operating procedures to prevent recurrence of such lapses. “PUB does not condone the alteration of documents furnished for audit and expects our officers to conduct themselves with integrity and professionalism,” it said. AGO emphasised that false information in audits undermines accountability and the integrity of public sector operations. It reiterated the importance of authenticity in documents to ensure transparent use of public funds.