WP town council scores poorly over S&CC arrears
It also gets red mark for corporate governance in town council report
By Janice Heng, The Straits Times, 5 Nov 2014
It also gets red mark for corporate governance in town council report
By Janice Heng, The Straits Times, 5 Nov 2014
This was 10 times the national average of 3 per cent, earning the town council a red mark in this area, in the annual Town Council Management Report released yesterday.
The Workers' Party-run town council also scored red in corporate governance. Three other town councils also tripped up in one of these two areas. But estate maintenance was the most widespread issue, with 11 of 16 town councils facing problems.
The Ministry of National Development's (MND) report, which covers the financial year from April last year to March this year, assesses performance in five areas with a red, amber and green banding system.
AHPETC was the only one to receive red - that is, the worst - scores. This was the second year running that it was red-flagged for corporate governance, and the third year for S&CC arrears management.
AHPETC scored poorly in corporate governance as it has not shown that it has rectified "various legal and regulatory contraventions" reported by independent auditors in the 2011 and 2012 financial years. Nor has it submitted its 2013 financial year financial statements and self-declared corporate governance checklist.
After Aljunied and Hougang town councils merged following the 2011 General Election, the arrears rate rose from 2.6 per cent in the 2010 financial year to 8.4 per cent in the next two years.
The rate rose to 29.4 per cent at end-April last year, meaning that nearly three in 10 households had S&CC payments overdue for three or more months.
From May last year, the town council stopped submitting its monthly S&CC arrears report altogether, despite reminders.
AHPETC did not respond to queries by press time.The only other town council to fail to score green in this area was Potong Pasir. It continued to get an amber banding, although its arrears rate improved from 4.2 per cent last year to 3.7 per cent this year.
"It's a problem that we inherited," said Potong Pasir Town Council chairman Sitoh Yih Pin. The town council was previously run by the Singapore People's Party. "Step by step, we will have to solve it with sensitivity."
He added that needy families who have difficulties with payments are receiving help.
Two other town councils scored amber for corporate governance, due to "technical breaches". Ang Mo Kio Town Council was twice late in transferring funds to its sinking fund bank account as the authorised signatories were overseas at the time.
In one quarter, Chua Chu Kang Town Council did not transfer the correct sum to its sinking fund due to calculation errors.
Town councils were also rated on estate cleanliness, lift performance and estate maintenance. All did well and had the green banding for the first two areas.
But 11 out of the 16 town councils had the amber banding when it came to estate maintenance.
Obstruction of common areas was the top problem, accounting for 32 per cent of all estate maintenance issues. Noting that items left in such areas are potential fire hazards and could hamper evacuations in emergencies, MND urged town councils to address the problem with residents.
This is a longstanding issue, said Chua Chu Kang Town Council chairman Zaqy Mohamad. "I think for many years, residents have become quite used to having flower pots and other things in the common corridors."
Town councils will have to work with residents to convey the importance of complying with fire safety codes, he added.