THE Ministry of National Development (MND) has applied to the court to appoint independent accountants to safeguard government grants disbursed to the Aljunied-Hougang-Punggol East Town Council (AHPETC).
If the court grants the order, MND will be able to disburse the Service and Conservancy Charges (S&CC) grants for both FY14 and FY15 to AHPETC, said MND in a press release on Friday.
"MND is also asking the court to empower the independent accountants to look at past payments made by AHPETC and to take appropriate action to recover losses suffered by AHPETC and its residents, provided the independent accountants obtain the court's permission to do so," said MND.
"The independent accountants, however, will not take over the operations of AHPETC, nor will they seek to remedy the problems identified by AGO (Auditor-General's Office) and AHPETC's auditors. These remain the responsibility of AHPETC's town councillors," MND added.
This follows the AGO's report last month that found several major lapses in the governance of AHPETC, which is run by the opposition Workers' Party.