Why hire KMPG? Png Eng Huat could have easily completed the audit just by making sense of things. Actually, when it comes to Aljunied-Hougang Town Council (AHTC) matters, Png is silent as the durian grave. He should have done OT to help Pritam Singh, instead, let his mouth loose on social media.
In the latest report by KMPG, I am appalled by the findings. Just by reading the headlines – “At least 18 months needed for AHTC to fix lapses”. Huh? That bad? I really pity those residents staying in the constituency; your S&CC payments could have been put into good use. Now, it’s destination unknown.
Still recovering from my shock, here are four points that you need to know about the shithole that was created.
First, use of manual journal entries. In essence, it is simply writing on paper with the AHTC logo and making payment to third parties. These transactions bypassed the accounting system that the town council’s finance department uses to oversee movement of money – Thus, is there a need for an accounting system?
To add salt to wounds, there were more than 48,500 such entries between 2011 to 2015. And the amount? A cool SGD 60 million. Come, I clap for you. Win big time bros.
Second, use of temporary accounts. Under normal circumstances, I understand that temporary accounts are used for testing purposes or to mirror actual accounts till the actual accounts are set up. For AHTC, it also said monthly closing, checking and reconciliation procedures, and clearing of temporary accounts were not carried out until the accounting firm started its assignment.
In short, WP can’t be bothered to check anything until an independent auditor was assigned to check on them. Wow. I’m speechless. Ownself check ownself lor.
Third, the implications. How could AHTC finance department keep track of who whose and where the monies are going? IMPOSSIBLE.
Such processes as mentioned in point one and two makes it easier to duplicate payments or make fictitious payments (very possible right?).
Fourth, where are the audit committee and management? All of them go la-kopi? Obviously no one is interested in cleaning the mess up, another classic WP case of not accepting responsibility and not dealing with problem.
Could Sylvia Lim, Low Thia Khiang, Pritam Singh, Muhamad Faisal and our dear Png Eng Huat please speak up?
I don’t know to laugh or cry when I read the statement on WP’s Facebook page. It goes “AHTC to act on KPMG recommendations on Internal Controls; forth KMPG monthly report on progress issued”. They painted such a nice picture. It is cool, life goes on.
You don’t need to be a genius to have a decent set of internal controls, you just keep playing these foolish game and fooled your supporters.
Large sums of public monies are at stake.
This is such a sad and sorry state. Did they also gave work to their own company? Only heaven knows….
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