Read more at https://www.channelnewsasia.com/news/singapore/ahtc-trial-sylvia-lim-avoided-calling-tender-davinder-singh-10843980
(Updated: )
Ricky Lim
According to KPMG, whose audit report forms part of the basis for the lawsuits, "the tender process for FMSS' initial appointment was waived without proper justification".
KPMG alleges that the contract AHTC signed with FMSS after this waiver was "improperly entered into", as procedures in the Town Councils Financial Rules (TCFR) were not followed.
KPMG said the managing agent fees proposed under this contract amounted to S$4.2 million per year for Aljunied, a sum "significantly greater" than the S$70,000 threshold that makes it compulsory for town councils to call for tenders under the TCFR.
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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
(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 · Edited
KPMG alleges that the contract AHTC signed with FMSS after this waiver was "improperly entered into", as procedures in the Town Councils Financial Rules (TCFR) were not followed.
KPMG said the managing agent fees proposed under this contract amounted to S$4.2 million per year for Aljunied, a sum "significantly greater" than the S$70,000 threshold that makes it compulsory for town councils to call for tenders under the TCFR.
---
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
(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 · Edited
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