1          Following the handover of Punggol East SMC (PE) from Aljunied-Hougang-Punggol East Town Council (AHPETC) to Pasir Ris-Punggol Town Council (PRPTC), PE’s property, rights and liabilities were transferred to PRPTC on 1 December 2015. The obligations relating to PE arising from the orders made by the Court of Appeal (CA) against AHPETC in its Judgment dated 27 November 2015 are now PRPTC’s obligations. To this end, PRPTC had appointed, with HDB’s consent, PricewaterhouseCoopers LLP (PwC) as its accountant.

2          HDB notes PwC’s recommendation for PRPTC to dispense with the monthly reports and the reasons given, i.e.

1. The non-compliances with Section 35(c) of the Town Councils Act stated in the CA Judgment referred to the non-compliances of AHPETC’s systems and processes; and
2. Since 1 December 2015, PE has adopted PRPTC’s systems and processes on which no outstanding non-compliances with Section 35(c) of the Town Councils Act were identified previously.

HDB has no objection to PRPTC/PwC’s position. HDB notes that PRPTC’s accounts are not qualified and PRPTC has not had a history of control issues.

3          HDB expects AHTC and PRPTC to do all that is necessary to carry out the orders of the CA. This includes fully cooperating and supporting the work of the appointed accountants, KPMG and PwC, to establish whether any past payments made by AHPETC were improper and ought therefore to be recovered.

 4          As public monies are at stake, HDB trusts that the Town Councils and their accountants will carry out thorough and robust checks, to assure residents and the public that all of AHPETC’s non-compliances have been fully resolved and that any improper payments have been identified and recovered.