All town councils score high in lift performance, S&CC

12 get all-green grades; AHTC submits clean accounts for first time in eight years

The Aljunied-Hougang Town Council, along with Jurong-Clementi Town Council and Tampines Town Council, received amber grades in estate maintenance. ST PHOTO: KUA CHEE SIONG

For the first time in eight years, the Aljunied-Hougang Town Council (AHTC) run by the Workers' Party submitted clean accounts to the Ministry of National Development (MND).

This year, all 16 town councils submitted a clean set of accounts.

The ministry disclosed the turnaround at AHTC yesterday when it released the latest Town Council Management Report (TCMR) for the period from April last year to March this year.

But the ministry also said it has asked AHTC why it did not require WP MPs Sylvia Lim and Low Thia Khiang to recuse themselves from financial decisions at the town council, after both were found by a judge to have breached their fiduciary duties in awarding a managing agent contract without tender.

The ministry also said that from the 2020 financial year, the lift performance indicator will be revised to consider such factors as the frequency and duration of lift faults.

"This will serve as a more direct measure of the experience of residents in using their lifts," it added.

The annual TCMR appraises town councils in five areas: estate cleanliness, estate maintenance, lift performance, management of arrears in service and conservancy charges (S&CC), and corporate governance.

This year, all were banded green, the best grade, in two areas: ensuring lifts did not break down too often and in collecting S&CC.

In fact, 12 town councils got all-green grades, compared with eight last year.

Of the town councils with amber grades, AHTC and Jurong-Clementi Town Council (JCTC) got two each, while Holland-Bukit Panjang Town Council and Tampines Town Council got one each. None received the worst grade of red.

Said the ministry: "The results... are comparable with that of previous years, with improvements observed in the area of estate maintenance."

The annual TCMR was introduced in 2010 to spur the performance of town councils, but some have dismissed it as politically motivated, with opposition-run town councils having scored badly.

Since 2011, AHTC had submitted audited financial statements that were qualified by its auditors.

But not this year.

This helped the town council get a green score for corporate governance, which measures compliance with the law in areas like awarding tenders.

The ministry attributed the accomplishment to the efforts of KPMG, which the town council had hired in 2016 to look into its books following a Court of Appeal ruling.

It also said KPMG helped AHTC remedy its past control failures and audit points over a period of 24 months, and the Housing Board had provided funding for this work.

The two areas where AHTC got an amber grade were estate cleanliness and maintenance. This is based on data collected by HDB officers during estate inspections, and covers factors like whether corridors are obstructed.

Both JCTC and Tampines Town Council also got amber grades in estate maintenance.

Meanwhile, JCTC and Holland-Bukit Panjang Town Council were graded amber in corporate governance.

JCTC had breached Rule 73(6) of the Town Council Financial Rules by not circulating the written records of verbal quotations at town council meetings.

It said in a statement that the quotations were for small-value purchases of 115 items totalling about $85,000. Most cost less than $500.

It also said its officers had invited three separate and independent quotes, obtained proper approval and documented the quotes as required.

Steps have been taken since September to ensure that all such documents are circulated, it added.

Holland-Bukit Panjang Town Council had collected charges for the use of the outdoor display area in Bangkit Art Street by retailers.

This goes beyond the provisions of the Town Councils (Use of Common Property) Rules, which require that such areas be for incidental use by existing businesses.

The town council said it had worked with the Merchants' Association on the use of the display areas, but "the interpretation and explanation" it gave was not accepted by the ministry.

Taking the ministry's advice, the town council has since entered into separate agreements with the shop owners.

MP Teo Ho Pin, the town council's chairman, said: "Bangkit Art Street has been an outstanding example of a successful revitalisation of an HDB commercial area.

"The town council will comply with MND's advice to ensure that outdoor display areas are only used by the existing shops for incidental display of goods."

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A version of this article appeared in the print edition of The Straits Times on December 06, 2019, with the headline All town councils score high in lift performance, S&CC. Subscribe