![](https://i.imgur.com/CLvY2jA.png")
03-07-2023, 11:37 PM
https://www.theonlinecitizen.com/2023/07...tion-fees/
Revelations about the rental of state properties by Singapore’s Home Affairs and Law Minister K Shanmugam and Foreign Affairs Minister Vivian Balakrishnan have led to public discussions following recent reviews conducted by Senior Minister Teo Chee Hean and the Corrupt Practices Investigation Bureau (CPIB).
Although both Ministers were absolved of any corruption allegations, the apparent conflict of interest of the Minister for Law renting from Singapore Land Authority (SLA) which he oversees, was a matter of public interest that spurred a lengthy parliamentary session on Monday (3 Jul).
Edwin Tong, Second Minister for Law, addressed these concerns in a ministerial statement, elucidating the role played by the Singapore Land Authority (SLA) in managing these rentals and overseeing their restoration before the ministers moved in.
Tong explained that the restoration process, conducted in adherence to conservation guidelines, involves considerable consultancy services to identify necessary works.
In his ministerial statement, the Second Minister for Law shared that consultancy costs accounted for S$375,000 out of a total renovation bill of S$515,400 At 26 Ridout Road, which Mr Shanmugam rented.
The remaining S$140,400 was spent on actual restoration and maintenance work. This work involved the retention and restoration of original architectural features, including the main roof, original fan lights, windows, doors, vents, and other architectural elements that provide distinctive character to the building. Additional costs were incurred for tasks such as painting, pest control, and mold removal.
This implies that consultancy services accounted for a substantial 72% of the total renovation expenditure.
A similar trend was seen at 31 Ridout Road, where Dr Balakrishnan resides. Here, consultancy fees amounted to S$452,000 out of a total expenditure of S$570,500. The remaining S$118,500 was used for extensive renovations, including roof repairs and restoration of heritage features. Additionally, general repairs to the staircase, the perimeter of the house, fixing windows, and pest control were undertaken, along with unique tasks like snake climbing prevention. This indicates that nearly 79% of the total expenses were attributed to consultancy fees.
These figures from both properties, detailing a significant proportion of the expenses going towards consultancy fees rather than actual restoration work, resemble a case noted by the Auditor-General Office in its report for the Financial Year 2015/2016. The report stated that there had been an inadequate assessment of the reasonableness of a consultancy fee of S$410,000 quoted for the construction of a bin centre built by the National Arts Council (NAC) for the Victoria Theatre/Victoria Concert Hall (VT/VCH).
The AGO observed that the NAC had directly engaged the VT/VCH consultants to provide additional consultancy services amounting to S$410,000 for the construction of a bin center, without first conducting a cost assessment to ascertain the reasonableness of the fee quoted.
The AGO stated that the fee was exceptionally high at 87.2 per cent of the construction cost, S$470,000, and that there was no assurance that the fee paid by NAC was reasonable. The S$410,000 consultation fees, on top of the S$470,000 construction fees, meant that the bin center cost in total was a whopping S$880,000.
In the case of the 26 and 31 Ridout Road properties, the consultation fees were far greater proportion at 267% and 381% of the renovation costs respectively.
While the AGO conducted a selective audit on the SLA in FY2018/2019, it did not pick up this issue as it had in FY2015/2016 with the NAC bin centre. The AGO was headed by Ms Goh Soon Poh, who was newly appointed in February 2019 and has also been involved in another controversy, as she is the wife of Mr Heng Chee How, the Senior Minister of State for Defence.
Apparently, no one noticed these ratios during the parliamentary session, and the information slipped through the discussion while the Ministers and opposition were busy arguing over apparent conflicts of interest.
Revelations about the rental of state properties by Singapore’s Home Affairs and Law Minister K Shanmugam and Foreign Affairs Minister Vivian Balakrishnan have led to public discussions following recent reviews conducted by Senior Minister Teo Chee Hean and the Corrupt Practices Investigation Bureau (CPIB).
Although both Ministers were absolved of any corruption allegations, the apparent conflict of interest of the Minister for Law renting from Singapore Land Authority (SLA) which he oversees, was a matter of public interest that spurred a lengthy parliamentary session on Monday (3 Jul).
Edwin Tong, Second Minister for Law, addressed these concerns in a ministerial statement, elucidating the role played by the Singapore Land Authority (SLA) in managing these rentals and overseeing their restoration before the ministers moved in.
Tong explained that the restoration process, conducted in adherence to conservation guidelines, involves considerable consultancy services to identify necessary works.
In his ministerial statement, the Second Minister for Law shared that consultancy costs accounted for S$375,000 out of a total renovation bill of S$515,400 At 26 Ridout Road, which Mr Shanmugam rented.
The remaining S$140,400 was spent on actual restoration and maintenance work. This work involved the retention and restoration of original architectural features, including the main roof, original fan lights, windows, doors, vents, and other architectural elements that provide distinctive character to the building. Additional costs were incurred for tasks such as painting, pest control, and mold removal.
This implies that consultancy services accounted for a substantial 72% of the total renovation expenditure.
A similar trend was seen at 31 Ridout Road, where Dr Balakrishnan resides. Here, consultancy fees amounted to S$452,000 out of a total expenditure of S$570,500. The remaining S$118,500 was used for extensive renovations, including roof repairs and restoration of heritage features. Additionally, general repairs to the staircase, the perimeter of the house, fixing windows, and pest control were undertaken, along with unique tasks like snake climbing prevention. This indicates that nearly 79% of the total expenses were attributed to consultancy fees.
These figures from both properties, detailing a significant proportion of the expenses going towards consultancy fees rather than actual restoration work, resemble a case noted by the Auditor-General Office in its report for the Financial Year 2015/2016. The report stated that there had been an inadequate assessment of the reasonableness of a consultancy fee of S$410,000 quoted for the construction of a bin centre built by the National Arts Council (NAC) for the Victoria Theatre/Victoria Concert Hall (VT/VCH).
The AGO observed that the NAC had directly engaged the VT/VCH consultants to provide additional consultancy services amounting to S$410,000 for the construction of a bin center, without first conducting a cost assessment to ascertain the reasonableness of the fee quoted.
The AGO stated that the fee was exceptionally high at 87.2 per cent of the construction cost, S$470,000, and that there was no assurance that the fee paid by NAC was reasonable. The S$410,000 consultation fees, on top of the S$470,000 construction fees, meant that the bin center cost in total was a whopping S$880,000.
In the case of the 26 and 31 Ridout Road properties, the consultation fees were far greater proportion at 267% and 381% of the renovation costs respectively.
While the AGO conducted a selective audit on the SLA in FY2018/2019, it did not pick up this issue as it had in FY2015/2016 with the NAC bin centre. The AGO was headed by Ms Goh Soon Poh, who was newly appointed in February 2019 and has also been involved in another controversy, as she is the wife of Mr Heng Chee How, the Senior Minister of State for Defence.
Apparently, no one noticed these ratios during the parliamentary session, and the information slipped through the discussion while the Ministers and opposition were busy arguing over apparent conflicts of interest.
