SINGAPORE - The Ministry of Social and Family Development (MSF) has revoked the status of Welcare Student Care Centre as an administrator of government student care fee assistance.

The move will take affect from Aug 1 to give parents adequate time to make alternative care arrangements, MSF said in a media release on Tuesday (June 28).

The ministry said that on March 22, it had served a notice of intention to Welcare to revoke its status as a student care centre.

This was following a recent MSF audit uncovering multiple instances of wrongful claims for student care fee subsidies made by the centre to the government.

MSF said it had referred the matter to the Commercial Affairs Department.

Welcare was given 14 days to explain the lapses to MSF and propose steps it would take to improve its processes.

Upon considering Welcare's response, MSF concluded that the centre had failed to adequately explain the lapses.

Despite extending the timeline by almost three months on Welcare's request, MSF said that Welcare was also unable to demonstrate its ability and commitment to improve its processes and ensure government student care subsidy is properly administered, and no public funds are lost.

MSF said it is in the process of recovering the full amount of wrongful subsidy claims made by Welcare.

The ministry is also in contact with parents whose children are enrolled in Welcare to explain the situation and offer assistance.