MND Press Statement on AHPETC

[Mustank]

 

 

how can the household be lesser due to less people getting married but HDB is building and selling more flat?

 

new citizen

[Vulcann]

How will this saga turn out?

 

Scenario 1:

 

AGO report ok, TC an la an la bo da chi. MIWs LLST.

 

Scenario 2:

 

AGO reported big misunderstanding due to different method of accounting/measurement. MIW & TC shake hands call truce and both live happily ever after.

 

Scenario 3:

 

AGO report damaging, TC toast. MIWs gleefully gears up for 2016.

 

[Cars08]

Earlier on 14 Feb, MND said that the auditor’s disclaimer of opinion “is more severe than a qualified opinion” [Link].

In today’s statement, the PAP Govt said that the observations in the Auditor’s Report “raise serious questions about the reliability and accuracy of AHPETC’s financial and accounting systems”.

 

 

I always tot a qualified opinion is more severe than a disclaimer of opinion...hmmm...anyway...the ending could be the auditor would be

[Darky8888]

if this needs to be investigated, why wasnt the Lehman Bro bonds purchase by TC be also investigated at that time?

Double standard!!!

[Babyt]

even if there is any wrongdoings w WP, I will still vote WP lol.

 

not like MIW is cleaner than anyone.

[Playtime]

http://www.tremeritus.com/2014/02/20/breaking-auditors-give-adverse-ratings-to-pas-financial-reports/

 

Interesting.... The plot thickens? ??

[Darryn]

Story now picked up by T.O.C

 

They've posted it on their facebook...

 

I wonder if Yahoo will report it?

 

http://www.tremeritus.com/2014/02/20/breaking-auditors-give-adverse-ratings-to-pas-financial-reports/

Interesting.... The plot thickens? ??

 

[Lightbringer]

Not sure who they report to either -

 

but ST said that DPM asked them to investigate....

 

 

 

AGO and AGC reports directly to the PMO. Which is why DPM can instruct them to investigate. Note that Teo is doing so in his capacity as DPM, and not as MHA.

[RadX]

wow...looks like it is norm lo.

 

Just that now different partner, it gets roused up....hmmmm

[Little_prince]

 

....& the lightning strikes:

 

 

(source: http://www.sclightning.com/ )

 

[dead]

fixing in progress!

[Lightbringer]

 

AGO and AGC reports directly to the PMO. Which is why DPM can instruct them to investigate. Note that Teo is doing so in his capacity as DPM, and not as MHA.

My mistake. I forgot there are 2 DPMs. Hahaha. It was Tharman who instructed this as DPM.

[Playtime]

 

AGO and AGC reports directly to the PMO. Which is why DPM can instruct them to investigate. Note that Teo is doing so in his capacity as DPM, and not as MHA.

Significance being? If any.

[Baal]

http://www.tremeritus.com/2014/02/20/breaking-auditors-give-adverse-ratings-to-pas-financial-reports/

 

 

 

 

BREAKING: Auditors give adverse ratings to PA’s financial reports

February 20th, 2014 | Author: Editorial

Yesterday (19 Feb), Minister for National Development Khaw Boon Wan requested Finance Minister Tharman Shanmugaratnam to direct the Auditor-General to conduct an audit of the opposition-run Aljunied-Hougang-Punggol East Town Council’s (AHPETC) financial accounts.

 

AHPETC’s auditor, Foo Kon Tan Grant Thornton LLP, had earlier submitted a “disclaimer of opinion” on AHPETC’s FY2012-13 financial statements, raising 13 issues of concern over the town council’s accounts.

 

Earlier, on 14 February 2014, the Ministry of National Development (MND) said that the auditor’s disclaimer of opinion “is more severe than a qualified opinion” [Link].

 

In yesterday’s statement, the PAP government said that the observations in the auditor’s report “raise serious questions about the reliability and accuracy of AHPETC’s financial and accounting systems”.

 

“This is the second year that the Auditor has submitted a disclaimer of opinion on AHPETC’s Financial Statements. Moreover the Auditor has raised several more issues of pressing concern this year, compared to last year. AHPETC’s Auditor’s Report and Financial Statements are cause for serious concern.”

 

As it turns out, auditors have been giving an “adverse opinion” on the financial reports from the People’s Association (PA) for several years now.

 

PA oversees all the grassroots activities in Singapore. It is a statutory board under the Ministry of Community Development, Youth and Sports (MCCY). The Chairman of PA is none other than PM Lee Hsien Loong himself.

 

According to ACRA, there are a few types of audit opinions. A “disclaimer of opinion” means the auditor is unable to express an opinion on the financial statements but an “adverse opinion” means qualification of the financial report is not adequate to disclose the misleading or incomplete nature of the financial statements [Link]:

 

 

Types of Audit Opinion Explanation Unqualified Opinion The auditor “concludes that the financial statements give a true and fair view or are presented fairly, in all material respects, in accordance with the applicable financial reporting framework.” Emphasis of matter (EOM) This is to “highlight a matter affecting the financial statements which is included in a note to the financial statements that more extensively discusses the matter. The addition of such an emphasis of matter paragraph does not affect the auditor’s opinion.” Qualified Opinion* This is expressed when the “auditor concludes that an unqualified opinion cannot be expressed but that the effect of any disagreement with management, or limitation on scope is not so material and pervasive as to require an adverse opinion or a disclaimer of opinion.” Disclaimer of Opinion* It is expressed when the “possible effect of a limitation on scope is so material and pervasive that the auditor has not been able to obtain sufficient appropriate audit evidence and accordingly is unable to express an opinion on the financial statements.” Adverse Opinion* It is expressed when the “effect of a disagreement is so material and pervasive to the financial statements that the auditor concludes that a qualification of the report is not adequate to disclose the misleading or incomplete nature of the financial statements.”

 

TRE has gone through PA’s financial reports on its website and found the following:

FY2007 (07/08) [Link]

 

For FY2007, PA did not include the financial statements of grassroots organizations (GROs) operating under itself. The auditor could not “assess the financial impact to the financial statements of the Association arising from the non-inclusion of the financial statements of the GROs”. As such, the auditor gave an “adverse opinion” against PA because its financial statements “[did] not present fairly” the state of affairs of the Association:

 

(published by PricewaterhouseCoopers, 12 Sep 2008 )

FY2008 (08/09) [Link]

 

For FY2008, the same thing happened. The GROs’ financial statements were again omitted by PA. Again, the auditor gave an “adverse opinion” against PA because its financial statements “[did] not present fairly” the state of affairs of the Association:

(published by PricewaterhouseCoopers, 15 Sep 2009)

FY2009 (09/10) [Link]

In FY2009, a new auditor, KPMG LLP, took over the audit of PA. The new auditor said, “We do not have sufficient information to assess the financial impact to the financial statements of the Association arising from the non-inclusion of the financial statements of the GROs.” As such, the new auditor also gave an “adverse opinion”:

 

(published by KPMG LLP, 15 Jul 2010)

Then, the format for the online version of PA’s financial reports for the next 3 years (FY2010 – 2012) changed [Link].

The public could no longer see the detailed opinions of the auditors. PA only published the “financial highlights” in these 3 reports. In other words, the financial reports became just financial summaries:

 

• FY2010 (10/11): http://www.calameo.com/read/000485916ba3dc3fdf3aa
• FY2011 (11/12): http://www.calameo.com/read/00209005895ae2db73d51
• FY2012 (12/13): http://online.flipbuilder.com/nvbl/mstp/

 

TRE then went down to the National Library to attempt to get printed copies of PA’s financial reports but the librarian was not able to find printed copies for the last 3 FYs (FY2010 – 2012). The library only has printed copies up to FY2009. The librarian told TRE to refer to the online versions instead.

 

Not giving up, TRE did a further extensive online search and managed to find an online version of PA’s FY2010 financial report. This copy was found on the Parliament website:

FY2010 (10/11) [Link]

 

Comparing this with the online version on PA’s website [Link], they are essentially the same except that the one found on the Parliament website discloses the detailed opinion of the auditor at the end:

 

(published by KPMG LLP, 15 Jul 2011)

Again, the auditor could only give an “adverse opinion” for PA’s FY2010 financial report because the auditor “[did] not have sufficient information to assess the financial impact to the financial statements of the Association arising from the non-inclusion of the financial statements of the GROs.”

The relationship between PA and PAP is very close. Mr Lee Kuan Yew once proudly said that the Chinese have been sending teams of officials to learn from Singapore for years:

 

They discover that the People’s Action Party has only a small office in Bedok. But everywhere they go, they see the PAP – in the RCs (residents’ committees), CCCs (citizens’ consultative committees), and the CCs (community clubs).

The operating expenditure of PA is huge. According to its latest financial report (FY2012), PA’s operating expenditure for the year increased by $46 million to $483 million. Government grants which are taxpayers’ money given to PA amounted to $434 million in FY2012:

 

 

Dr Ernest Kan, President of the Institute of Singapore Chartered Accountants (ISCA) and Pasir Ris Punggol grassroots leader, had earlier agreed with MND that the audit findings on AHPETC are “serious” (‘President of ISCA: AHPETC’s audit report ‘serious’‘). It is not known what Dr Kan has to say about PA’s audit findings which have garnered “adverse opinions” from auditors.

 

It is also not known if the Acting Minister for Culture, Community and Youth, Lawrence Wong, will request Finance Minister Tharman Shanmugaratnam to direct the Auditor-General to conduct an audit of PA’s financial accounts, since PA comes under MCCY.

 

Edited February 21, 2014 by Baal

[TJX]

The ruling party needs to understand that all the relentless smearing campaign is doing more harm than good to themselves. They should focus on getting their house in order instead of "AIM-ing" at the opposition. Always remember that when you point one of your fingers at someone, the other four are pointing back at you. Engaging in petty quibbles only swing more votes the other party. Potentially, people are contemplating to vote against them just to make a statement. Tan Cheng Bock interview on mypaper today is a good read.

Edited February 21, 2014 by TJX

[ShepherdPie]

even if there is any wrongdoings w WP, I will still vote WP lol.

 

not like MIW is cleaner than anyone.

 

moving to WP wards ?

[Babyt]

im under EC GRC

[Vulcann]

Tan Cheng Bock interview on mypaper today is a good read.

 

Here it is in full:

 

Tan Cheng Bock talks politics

SPEAKING HIS MIND: Dr Tan noted that the PAP Government has got itself into "a very tight situation" by letting in too many foreigners in the past. He added that the Government may now be "overdoing it" in tightening labour flows.

Tessa Wong

MyPaper

Friday, Feb 21, 2014

SINGAPORE - The People's Action Party (PAP) Government may be trying hard to fix problems caused by the large inflow of foreigners, but it has got itself in a tight bind, said former presidential candidate Tan Cheng Bock.

 

Its difficulties could help the opposition Workers' Party (WP) in the next general election, he said.

 

The former PAP MP for Ayer Rajah spoke on the future of both political parties in an hour-long interview with MyPaper at his home.

 

Since the watershed 2011 General Election, the Government, especially its younger ministers, has been "trying very hard" to resolve issues - like immigration - that contributed to its loss of votes, he said.

 

In 1999, when he was still an MP, he had called on the Government to tone down its talk on attracting foreigners, earning rebukes from ministers, including then Senior Minister Lee Kuan Yew.

 

"Now, (the Government) has a quota system for foreigners in HDB," noted Dr Tan, 73.

 

But they have got themselves into "a very tight situation" by letting in too many foreigners.

 

"The original lax policy has created a lot of problems. If you suddenly pull the brakes too hard...you titrate wrongly, you have a big, big problem, because the companies will suffer," he said, adding that the Government may now be "overdoing it" in tightening labour flows, as businesses are facing a manpower crunch.

 

This means there is "a very likely chance" the WP could win more seats at the next election, given that some wards in the last election were won narrowly by the PAP.

 

"I think it's good because the WP can make the Government work harder, and also I think debate on issues will be much better," he said.

 

Asked what he thought of PAP's criticism that WP often sits on the fence or does not voice out its position on several issues, Dr Tan said: "They don't have to put forth an alternative every time an issue comes up. You can always wait. Timing is very important in politics... So they will know when to push their agenda.

 

"I think the PAP is the same, because (when rolling out) some of their policies they will wait."

 

With next year marking 50 years of independence, "if I were the Government, I would capitalise on it".

 

One thing working for the party now is its renewed vigour in fighting for votes, he noted.

 

But despite efforts to communicate more with citizens, "I don't think they have really nailed it yet...there is still a lack of trust" in the Government and its leaders, he said.

 

They have also yet to solve the "divide" in the party, where grassroots activists can feel snubbed after "they work like hell but they don't get to be MP" when the leadership parachutes elite "prefectorial, army, navy types" who are not in touch with the ground.

 

One exception is Deputy Prime Minister Tharman Shanmugaratnam, whom he praised as "down to earth".

 

"Tharman is the type of person we should look for, and if we can get many people like him, I think the PAP will win (future elections) hands down," he declared.

 

"I think Tharman is a very practical chap, he knows how to move the ground...he's got the charisma to convince me that I want to go along with him," he said.

 

[email protected]

 

Get MyPaper for more stories.

 

(source: http://news.asiaone.com/news/singapore/tan-cheng-bock-talks-politics?page=0%2C0 )

[Vulcann]

"The original lax policy has created a lot of problems. If you suddenly pull the brakes too hard...you titrate wrongly, you have a big, big problem, because the companies will suffer," he said, adding that the Government may now be "overdoing it" in tightening labour flows, as businesses are facing a manpower crunch.

 

In that few sentences he basically summed up problems then and now