Updated: 03/07/2014 21:34

Aljunied-Hougang-Punggol East TC graded red for corporate governance

Aljunied-Hougang-Punggol East TC graded red for corporate governance

The Ministry of National Development, MND, says it has given Aljunied-Hougang-Punggol East Town Council the lowest 'red' grading for corporate governance for financial year 2012. 

The grading was pending when the ministry published its Town Council Management Report for FY2012 in November last year. 

That's because the Aljunied-Hougang-Punggol East Town Council had then not submitted its audited financial statements, auditor's report, auditor's management letter and self-declared corporate governance checklist, which were material for assessment. 

MND says these were submitted last month except for the auditor's management letter to the ministry, despite multiple reminder. 

The ministry notes that the independent auditor, Foo Kon Tan Grant Thornton, had said the the town council had not complied with the provisions of the Town Councils Act and the Town Councils Financial Rules. 

The town council had failed to transfer funds into the bank account of the sinking funds and it had also failed to keep proper accounts and records of its transactions and affairs. 

MND says based of these observations, the twon council was graded red for corporate governance.

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