Singapore Government Plans to Deny S$7 Million Worth of Grants to AHPETC Annually

“Astounding and unacceptable”.

If the Ministry of National Development (MND) gets its way, Aljunied-Hougang-Punggol East Town Council (AHPETC) is set to lose S$7 million a year in government service and conservancy (S&C) grant money.

Minister of National Development, Khaw Boon Wan, said in parliament today (12 Feb) that until AHPETC “cleans up its act”, the government will withhold the grant money.

“MND is mindful that the suspension does not unwittingly result in the town council not being able to pay its essential services, leading to hardship for local residents,” he said.

“We are prepared to consider paying out the grants in full, or at least in half, if AHPETC could assure MND that the grants will be properly channelled to the purpose for which they are given,” he said.

Mr Khaw also told the House that the Government will seek to change the Town Councils Act to give it the power to investigate and take to task errant town councils.

The current Act does not provide the (MND) with powers to make town councils accede to its requests for information beyond annual financial reports, nor any powers to investigate irregularities or non-compliance.

Mr Khaw said that because of this, the MPs running AHPETC were given a free rein to be “evasive, unresponsive and misleading” for three years, despite the government pressurising it to account for financial lapses.

“We can no longer take the light touch and assume that all MPs running Town Councils will be responsible,” said Mr Khaw.