Auditor-General flags contract, grant & IT lapses across public agencies, MOHH lodges police report

Auditor-General’s report reveals lapses in Singapore’s public agencies

The Auditor-General’s Office (AGO) has identified lapses across public agencies, including projects proceeding without necessary approvals, weaknesses in contract and grant management, inadequate IT controls, and possible irregularities involving contractor quotations.

In a statement issued on 15 July, the Ministry of Finance (MOF) said the Government accepted the AGO’s findings and was taking steps to address them.

It added that the Auditor-General had issued an unmodified opinion on the Government Financial Statements, meaning the accounts were prepared in accordance with the law in all material respects and public funds were properly accounted for.

The Ministry of Health (MOH) and MOH Holdings (MOHH) also released details of the corrective measures being taken over lapses involving the development of the National Cancer Centre Singapore (NCCS) building.

MOH says project proceeded with approval and governance lapses

One of the major cases highlighted involved the development of the NCCS building, which was completed in 2022.

According to MOH, the AGO found that the ministry had:

• Funded project items that had earlier been rejected or reduced by the Development Planning Committee (DPC)
• Called and awarded certain tenders before securing the required project approval and MOF’s concurrence
• Used savings from lower construction costs to pay for other works without formally reporting those savings

MOH said it had “misinterpreted” an MOF note conveying the committee’s approval, believing that previously rejected or reduced items could be restored so long as the project stayed within its approved overall budget and gross floor area.

The ministry explained that the unreported savings arose because several construction contracts were awarded at lower prices than expected.

The money was used for works including a pedestrian link bridge connecting NCCS to Outram Park MRT station, intended to improve access for patients.

MOH emphasised that the project team had acted “in good faith” and that there was no indication of intentional wrongdoing.

Going forward, the ministry will seek MOF’s explicit concurrence before calling tenders ahead of formal project approval.

It will also assess whether changes to a project are significant enough to require fresh approval, and incorporate the reporting of project savings into its revised standard operating procedures.

MOHH lodges police report over possible quotation irregularities

The AGO also raised concerns about MOHH’s management of contracts for the NCCS project, including the assessment of “star rate” items, works without pre-agreed prices that require supporting quotations to establish cost.

MOH said consultants had not properly assessed the prices of these items against independent quotations, creating a risk that the records contained irregularities.

MOHH has since lodged a police report, and will use digital tools to check the authenticity of sampled quotations, widen the scope of its internal audits, and continue training staff in procurement and contract management.

It will also reiterate its expectations to consultants handling star rate items for current and future projects.

Separately, MOHH will reassess the costs of affected variation works and make any necessary adjustments, including recovering overpayments where applicable, by December 2026.

It plans to complete an internal audit of the variation works by March 2027 before reissuing the project’s final account.

A new checklist has been introduced for ongoing and future projects to strengthen checks before final accounts are approved.

Public agencies to strengthen contract management

Beyond the NCCS project, the AGO identified broader areas for improvement in how public agencies manage contracts.

MOF said agencies were stepping up targeted checks to detect questionable quotations submitted by contractors.

The Government has also introduced a central repository allowing agencies to compare fixed schedules of rates when assessing star rate items, alongside a guide setting out good practices.

More training will be provided to public officers and external consultants in areas such as evaluating variations, checking completed work, maintaining supporting documents, and assessing star rate items before payments are made.

Controls over training grants need improvement

The AGO also conducted a thematic audit of training grants administered by SkillsFuture Singapore and Workforce Singapore, which have since merged as the Singapore Workforce Development Agency (SWDA).

While the AGO found that controls were generally in place throughout the grant process, and noted several good practices, it also identified room for improvement, including:

• Ensuring grants are paid only to eligible recipients
• Strengthening oversight of grant intermediaries
• Detecting and preventing possible gaming of grant schemes

MOF said the findings would be incorporated into central grant guidelines and training materials.

The Government has already introduced measures such as a fraud-awareness e-learning course for grant officers and digital tools that help agencies conduct due diligence on applications and identify possible irregularities in submitted documents.

Revenue collection, financial, and IT controls to be tightened

The AGO also highlighted lapses in the administration and collection of taxes, fees, and other charges.

MOF said the agencies involved would tighten their procedures, take corrective action, and ensure prevailing rules and guidelines were followed.

Some agencies were also found to have insufficient controls over project spending.

In response, they will strengthen internal processes to ensure necessary approvals are obtained before committing to projects or making material changes to an approved scope.

Weaknesses were also found in IT controls, including the management of privileged accounts, which give users elevated system access.

MOF said the agencies concerned had taken steps to strengthen access controls and improve internal procedures, and that the Government would continue working to ensure privileged access is managed consistently and securely.

The AGO identified three other areas requiring attention: procurement evaluations, the handling of errors in fee collections and payments, and the management of conflict-of-interest declarations.

MOF said agencies were tightening controls and processes in these areas, and would continue reminding public officers of the importance of declaring and properly managing conflicts of interest.

Government warns against false audit records

MOF said the Government remained committed to maintaining high standards of integrity, accountability, and governance.

Agencies have investigated, or are continuing to investigate, possible irregularities in records submitted for audit, and cases will be referred to the police where there are sufficient grounds.

The Government also warned that officers found to have deliberately provided false information for an audit could face disciplinary action, including dismissal where warranted.

Also read: MOH to revoke licence of nursing home in Siglap from 23 Nov due to multiple lapses