Require condo management to submit accounts to MND

I agree with Mr Frankie Mao that there should be greater regulation over management councils of strata-titled properties in Singapore, given that these management councils have many powers which create the potential for abuse ("Tighten oversight of condominium management"; yesterday).

They oversee large management and sinking funds made up of mandatory contributions from subsidiary proprietors, enforce by-laws in their properties which may entail the collection of fees, and can award tenders for contracts to provide services in their properties.

However, currently, the accounts of management corporations are merely approved by vote at annual general meetings (AGM) of the management corporation.

Turnout at AGMs is often very low, and subsidiary proprietors may not have the necessary accounting expertise to scrutinise these accounts.

The Government should consider making it mandatory for management corporations to submit their audited financial statements and reports to the Ministry of National Development (MND) every financial year, which is the case for town councils.

In addition, the Government should consider empowering MND to conduct special audits of these accounts if there is suspicion of fraud or wrongdoing.

The Building Maintenance and Strata Management Act came into operation more than a decade ago.

While the Act has served its purpose well, the Government should consider reviewing the Act to ensure greater oversight of management councils.

Chan Kai Yan

A version of this article appeared in the print edition of The Straits Times on August 10, 2016, with the headline 'Require condo management to submit accounts to MND'. Print Edition | Subscribe