Auditor-General flags lapses by govt agencies, including possible falsification in PUB documents

SINGAPORE — Singapore's public accounts watchdog has flagged lapses and irregularities in its annual audit of government ministries and agencies, including instances where contract documents were altered to give the false impression that required checks had been carried out.

One case of falsified documents involved a PUB contract, valued at $7.95 million, to supply biocide for midge control, said the Auditor-General's Office (AGO) in its report for the 2024 to 2025 financial year.

Under the contract, the contractor had to provide certificates of analysis from an accredited laboratory to show that the biocide met required specifications.

The AGO found tell-tale signs of possible irregularities in the soft copy of all six certificates that the national water agency submitted for audit.

These problematic soft copies had different version numbers, formatting and information from the original hard copies provided by the contractor, and "sought to give the false impression that checks on the active ingredient level had been performed… and that PUB had accepted goods that met its contractual requirements", said the AGO in its report released on Sept 9.

"AGO takes a serious view of any furnishing of false information. Such actions cast doubt on the authenticity of the other documents furnished for audit and impede the work of AGO," the watchdog said.

In a statement, the Ministry of Finance (MOF) said PUB has launched an internal investigation into the matter, and "will be taking the necessary actions, including referring the case to the police if there are grounds to do so".

PUB made a police report over possible irregularities in quotations for a separate $6.75 million contract for waterscape works.

The AGO found irregularities in the quotations for 23 out of 25 "star rate items", for which rates were not listed in the contract. The value of these items came up to $148,900, or 94 per cent of the total value of items checked.

Given these irregularities, the AGO said it had concerns over whether the quotations were authentic, and if they were good value for money.

These two instances were among the 25 more significant lapses the AGO flagged in its report, out of a total of 132 which it found.

The others that the AGO highlighted had to do with contract management and procurement; management of operations, revenue and grants; weaknesses in IT controls, as well as the handling of research and development grants.

In its report, the AGO said the public sector should pay greater attention to three areas, namely contract management and procurement, management of revenue and irregularities in records submitted for audits.

On contract management, the AGO urged public sector agencies to maintain adequate oversight over their consultants and contractors. Measures should be put in place to ensure goods and services provided actually meet contract requirements before payment is made, it said.

Tenders must also be evaluated according to published evaluation criteria, to ensure contracts are awarded in line with the Government's procurement principles of transparency, fairness and value for money, said the AGO.

On the management of revenue, the AGO said public money collected under the law should be properly accounted for as government revenue.

The AGO also reiterated that it takes a serious view of agencies furnishing false information and altered documents, as this hampers the audit and casts doubt on the authenticity of other documents.

Responding to the issues raised, MOF said it is updating training programmes and learning resources for public sector officers so they can better identify key issues when evaluating or managing contracts.

It added that individual agencies have stepped up training of their officers and will systematically share learnings across the public service.

As for revenue management, the agencies with lapses will tighten their processes and ensure they comply with existing rules for revenue collection and management, said the MOF.

On irregularities in records, MOF said the Government takes a serious view of the irregularities and has reiterated to senior public service leaders the importance of setting the right tone by scrutinising this area of work.

"In addition, we have also reminded officers that actions that undermine trust in the integrity and accountability of Government will not be condoned, and that stiff action will be taken should such irregularities take place," said the ministry.

The MOF also said the annual audits are crucial for maintaining public trust, accountability and transparency in the management of public money, adding that the Government takes the audit seriously.

"Where there are lapses, agencies will review each case thoroughly to identify the root causes and take corrective actions promptly. Good practices and areas for improvement will also be shared across public agencies to enhance governance and performance," MOF added.

Auditor-General Ng Wai Choong, in a note at the end of the report, said he was pleased that the public sector agencies audited had taken the observations seriously and were committed to address the lapses.

"AGO will follow up with them to ensure that remedial actions are taken," said Mr Ng, who took over the role from Ms Goh Soon Poh on Feb 8.

For its report, the AGO audited the Government Financial Statements, which included the accounts of all 16 ministries and eight organs of state, as well as the financial statements of three statutory boards, four Government-owned companies and two other accounts.

It issued unmodified audit opinions on these financial statements, which means that they are reliable with no significant mis-statements.

It also conducted selective audits — which involve checks on selected areas for financial irregularity, excess or gross inefficiency, among other things — on six statutory boards and two government funds.

In addition, the AGO carried out a thematic audit on the Research, Innovation and Enterprise 2025 grants managed by A*Star and the National Research Foundation.

The report was submitted to the President on July 2, and presented to Parliament on Sept 8.

[[nid:722404]]

This article was first published in The Straits Times. Permission required for reproduction.