Read more at https://www.channelnewsasia.com/news/singapore/ahtc-trial-sylvia-lim-admits-breach-town-council-financial-rules-10845356
By Lydia Lam
(Updated: )
Ricky Lim
According to the TCFR, tenders must be called for services that are estimated to cost more than SS$70,000. However, AHTC did not call a tender for managing agent services costing S$92,000, which were provided to the town council by FM Solutions and Services (FMSS) for the month of June 2011.
The rules which govern town councils allow waivers of tenders, but only in "very special circumstances" that are "fully justified", and such circumstances and justifications must be recorded.
"Was there a discussion about waiver of tender? Yes or no?" asked Mr Singh, who acts for Pasir Ris-Punggol Town Council (PRPTC).
"No," Ms Lim conceded.
"So being aware, as you claimed this morning, of the town council rules, you disregarded them. You breached them, right?" Mr Singh charged.
"I exercised my authority," Ms Lim replied. She had told the court earlier that the town council had delegated to her authority to exercise the powers, functions and duties in AHTC's name to better facilitate the handing over of Aljunied Town Council from the People's Action Party (PAP) to the WP, after they won the ward in the 2011 General Election.
"Answer my question please," Mr Singh repeated. "You breached them, right?"
"I waived the tender in circumstances of urgency," Ms Lim maintained.
"Ms Lim. We are now just before the 15th of June (2011). Let's take ourselves back in time. We are now on the 13th and 14th ... You've already waived, or decided no tender, and there is nothing on the record about a waiver, right?" Mr Singh pressed.
"At this point, no," Ms Lim agreed.
"So that's a breach, right? You know the rules," Mr Singh said.
"I have to agree, technically, yes," Ms Lim conceded.
"It's a breach of the rules, correct?" Mr Singh asked.
"At this point, yes," Ms Lim said.
--
Posted on:-
17 Oct 2018 09:45PM (Updated: 17 Oct 2018 11:40PM)
Ricky Lim
Under the Government Instruction Manual (IM) for Procurement Process that govern Government contract of services (where Town Council will also come under this jurisdiction):-
(1) Quotations ($6,000 – up to < $70,000) - at least 3 quotations need to be called
(2) Tender (more than >$70,000). - Open tender or Closed tender (if the procurement is niche).
Looking at the Aljunied GRC town council - Maintenance Agent role, the following evaluation criteria to call the tender need to be examine :-
(1) Does the MA services exceed $70,000?
Ans :- Yes - a tender need to be called.
(2) Is the MA services so niche that only one and only 1 vendor can meet?
Ans :- No - CPG can meet and exceed, FMSS and 2 other vendors who come forward can meet. (In fact in the industry market, many other vendors have such expertise to provide FM services).
--- Thus an open tender is imperative.
(3) If open tender is called to provide MA consultancy services - the qualification must be a track record to manage between 40,000 to 50,000 residents in the estate.
Which vendor qualify?
a. CPG
b. FMSS
c. 2 other vendors
Ans :- CPG has such track record of managing 40,000 to 50,000 residents.
FMSS and 2 other vendors do not have such track record according to Mr Low.
Rightfully based on this evaluation criteria - only CPG qualified. But yet FMSS is selected and 2 other vendors were penalised based on this evaluation criteria.
Note :- This is a breach of the Government IM in awarding the tender.
(4) What is method of procurement by Aljunied GRC town council?
Ans :- Waiver of tender (this is against IM for not calling an open tender) - as waiver of tender is strictly restricted - only reserved for :_
- one and only one vendor can provide the services where no one can.
- in an emergency situation where services need to provide immediately - else it is a "life and death" situation.
Does Aljunied GRC fall under this 2 category to justified the "waiver of tender"?
- there are more than one vendor that can provide this service.
- is it a life and death situation - CPG, 2 other vendors can provide other than FMSS
Ans :- Aljunied GRC context doesn't qualify to exercise "waiver of tender" - and now the question is - how Aljunied GRC make representation to MND on how they justify "waiver of tender" to make MND agree to the "waiver of tender".
(5) By awarding FMSS the MA role - will it cause a "conflict of interest" if FMSS associate company bid for the project under Aljunied GRC contract in which FMSS is playing a MA role?
Ans :- Yes - FMSI is own by FMSS and indeed will cause a "conflict of interest" and breach the Town Council Act.
This is like what Mr Singh lawyer said :- "WP ex-chief Low Thia Khiang gave FMSS 'a gun to put to AHTC's head'".
This will allow FMSS to fleece AHTC big time - $33 million loss to FMSI.
Like · Reply · 1m
The rules which govern town councils allow waivers of tenders, but only in "very special circumstances" that are "fully justified", and such circumstances and justifications must be recorded.
"Was there a discussion about waiver of tender? Yes or no?" asked Mr Singh, who acts for Pasir Ris-Punggol Town Council (PRPTC).
"No," Ms Lim conceded.
"So being aware, as you claimed this morning, of the town council rules, you disregarded them. You breached them, right?" Mr Singh charged.
"I exercised my authority," Ms Lim replied. She had told the court earlier that the town council had delegated to her authority to exercise the powers, functions and duties in AHTC's name to better facilitate the handing over of Aljunied Town Council from the People's Action Party (PAP) to the WP, after they won the ward in the 2011 General Election.
"Answer my question please," Mr Singh repeated. "You breached them, right?"
"I waived the tender in circumstances of urgency," Ms Lim maintained.
"Ms Lim. We are now just before the 15th of June (2011). Let's take ourselves back in time. We are now on the 13th and 14th ... You've already waived, or decided no tender, and there is nothing on the record about a waiver, right?" Mr Singh pressed.
"At this point, no," Ms Lim agreed.
"So that's a breach, right? You know the rules," Mr Singh said.
"I have to agree, technically, yes," Ms Lim conceded.
"It's a breach of the rules, correct?" Mr Singh asked.
"At this point, yes," Ms Lim said.
--
Posted on:-
17 Oct 2018 09:45PM (Updated: 17 Oct 2018 11:40PM)
Ricky Lim
Under the Government Instruction Manual (IM) for Procurement Process that govern Government contract of services (where Town Council will also come under this jurisdiction):-
(1) Quotations ($6,000 – up to < $70,000) - at least 3 quotations need to be called
(2) Tender (more than >$70,000). - Open tender or Closed tender (if the procurement is niche).
Looking at the Aljunied GRC town council - Maintenance Agent role, the following evaluation criteria to call the tender need to be examine :-
(1) Does the MA services exceed $70,000?
Ans :- Yes - a tender need to be called.
(2) Is the MA services so niche that only one and only 1 vendor can meet?
Ans :- No - CPG can meet and exceed, FMSS and 2 other vendors who come forward can meet. (In fact in the industry market, many other vendors have such expertise to provide FM services).
--- Thus an open tender is imperative.
(3) If open tender is called to provide MA consultancy services - the qualification must be a track record to manage between 40,000 to 50,000 residents in the estate.
Which vendor qualify?
a. CPG
b. FMSS
c. 2 other vendors
Ans :- CPG has such track record of managing 40,000 to 50,000 residents.
FMSS and 2 other vendors do not have such track record according to Mr Low.
Rightfully based on this evaluation criteria - only CPG qualified. But yet FMSS is selected and 2 other vendors were penalised based on this evaluation criteria.
Note :- This is a breach of the Government IM in awarding the tender.
(4) What is method of procurement by Aljunied GRC town council?
Ans :- Waiver of tender (this is against IM for not calling an open tender) - as waiver of tender is strictly restricted - only reserved for :_
- one and only one vendor can provide the services where no one can.
- in an emergency situation where services need to provide immediately - else it is a "life and death" situation.
Does Aljunied GRC fall under this 2 category to justified the "waiver of tender"?
- there are more than one vendor that can provide this service.
- is it a life and death situation - CPG, 2 other vendors can provide other than FMSS
Ans :- Aljunied GRC context doesn't qualify to exercise "waiver of tender" - and now the question is - how Aljunied GRC make representation to MND on how they justify "waiver of tender" to make MND agree to the "waiver of tender".
(5) By awarding FMSS the MA role - will it cause a "conflict of interest" if FMSS associate company bid for the project under Aljunied GRC contract in which FMSS is playing a MA role?
Ans :- Yes - FMSI is own by FMSS and indeed will cause a "conflict of interest" and breach the Town Council Act.
This is like what Mr Singh lawyer said :- "WP ex-chief Low Thia Khiang gave FMSS 'a gun to put to AHTC's head'".
This will allow FMSS to fleece AHTC big time - $33 million loss to FMSI.
Like · Reply · 1m
Ricky Lim
Ricky Lim
(1) The objective of the Government IM to guide the Government procurement process is to ensure :-
(a) select the vendor that can best do the job at the best price.
(b) ensure fair and unbias sourcing to prevent possibility of conflict of interest and weak internal control - which contribute to losing of public funds.
Like · Reply · 1m
Ricky Lim
Waiver of tender - are rarely allowed.
Even if it is allowed under very dire circumstances - "like life and death or emergency" or "only one and only one vendor can provide" ----- it will definitely come under the spotlight of :-
(1) approving Authorities
(2) "hell lot of justifications" and "exceptional supporting circumstances" as justifications.
(2) internal & external auditors going into all details and justifications.
Because "waiver of tender" ===== almost tantamount to a "kelong" - & "high chance of abuse" ---- which is demonstrated by this Aljunied GRC town council and FMSS case.
Like · Reply · 1m
(1) The objective of the Government IM to guide the Government procurement process is to ensure :-
(a) select the vendor that can best do the job at the best price.
(b) ensure fair and unbias sourcing to prevent possibility of conflict of interest and weak internal control - which contribute to losing of public funds.
Like · Reply · 1m
Ricky Lim
Waiver of tender - are rarely allowed.
Even if it is allowed under very dire circumstances - "like life and death or emergency" or "only one and only one vendor can provide" ----- it will definitely come under the spotlight of :-
(1) approving Authorities
(2) "hell lot of justifications" and "exceptional supporting circumstances" as justifications.
(2) internal & external auditors going into all details and justifications.
Because "waiver of tender" ===== almost tantamount to a "kelong" - & "high chance of abuse" ---- which is demonstrated by this Aljunied GRC town council and FMSS case.
Like · Reply · 1m
Like · Reply · 1m
Yeok Fong Yong
No open tender, Direct Negotiation...this is how Malaysia under Najib govt built their gravy train, see what happened to them now! If Singapore govt adopt the WP's model of Direct negotiation, Singapore will become Najib-Malaysia in one decade!
Tokay OH
This case of not calling for tender is not not knowing the rule but rather breaking the rule with premeditation and pinning the blame on CPG and AIMS.
Like · Reply · 32m
Eng Hong Ong
Sorry har post again.. what happened to CPIB? I thought these cases are normally handled by CPIB?
Ricky Lim
This is not a corruption or bribery case - why should CPIB be involved?
This is also not a criminal case.
It is a suspected "mismanagement and mishandling" of public funds due to likely breaching of :-
(1) Town Council Act
(2) Government IM of Procurement process
(3) Fiduciary Duties.
- which is a civil lawsuit.
This is also not a criminal case.
It is a suspected "mismanagement and mishandling" of public funds due to likely breaching of :-
(1) Town Council Act
(2) Government IM of Procurement process
(3) Fiduciary Duties.
- which is a civil lawsuit.
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