Teo Ho Pin: Contract with AIM benefits town councils
The PAP town councils sold the management software to a third party because it was "cumbersome and inefficient" to have 14 individual town councils hold intellectual property rights to the software.
Dr Teo Ho Pin, the coordinating chairman of PAP town councils, gave this explanation in a 26-paragraph, four-page statement outlining why and how the town councils came to have a sale and lease back deal with the PAP-owned Action Information Management (Aim).
"The vendor would have to deal with all the 14 town councils when reviewing or revising the system. It would be better for the 14 town councils to consolidate their software rights in a single party which would manage them on behalf of all the town councils, and also source vendors to improve the system and address the deficiencies," he said.
He added that the idea to have a third party own the computer system with the councils paying a service fee was not uncommon and that the deal ultimately yielded savings of around $8,000 for the town councils.