Issues with FMSS
Minister Khaw Boon Wan said in his round-up speech and subsequent responses that AHTC had awarded a contract to FMSS without a tender.
The town council financial rules allow for a waiver of tender, and in this case of AHTC, MND did not intervene.
FMSS was formed by people closely associated with the Workers’ Party – former Hougang town council General Manager, spouse, were contractors to Hougang town council, Secretary and Deputy Secretary of Hougang town council, who were also assentors and proposers for Yaw Shin Leong’s candidacy during the elections, etc.
FMSS was only formed on 15 May, 2011 – 4 days after the elections
FMSS was awarded a $5.2 million contract without a tender, and one year later was the only tenderer awarded a 16.8 million 3-year contract, etc.
Ms Sylvia Lim’s response was that there are only 3 companies providing town council management services and all 3 were doing business with the PAP town councils, and the incumbent managing agent actually asked to be released from providing services to AHTC.
So, they had no time to call a tender in the first year and nobody else tendered a year later.
She also explained that they complied with the conditions to waive a tender – urgency in the public interest – termination clause for service to be cut-off – time was running against us – As for the sole tender a year later, a special audit was conducted due to the sole tender and the auditing firm found the company complying to all requirements of the tender.