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GE2015: WP has not explained 'important questions' on clawback from FMSS: Khaw
[SINGAPORE] The Workers' Party (WP) has not answered important questions about the clawback of money from the former managing agent of Aljunied-Hougang-Punggol East Town Council (AHPETC), and continues to distort the facts surrounding AHPETC, claimed Minister for National Development Khaw Boon Wan, on Thursday.
Speaking to reporters in the midst of his walkabout, Mr Khaw said that the key issues surrounding AHPETC remain largely unresolved. He pointed out that the financial accounts remain qualified.
The FY14/15 accounts received a disclaimer of opinion from independent auditors. Qualified accounts are deemed a red flag in the corporate world.
MND on Saturday released figures showing that FMSS (FM Solutions & Services) posted a post-tax profit of more than S$2 million in the fiscal year 2013/2014. While its profit has about quadrupled from the same period a year ago, FMSS's revenue was up by just 30 per cent in the same time.
FMSS was appointed by AHPETC from July 2011, but stopped its services to the town council from July this year. AHPETC will now be self-managed. FMSS's main shareholders were the late Danny Loh and his wife, How Weng Fan. The company was incorporated seven days after WP won the Aljunied ward.
WP has said that the town council cannot determine the profit margin of its former managing agent, and that they are paid according to a contract.
"And then, we found out, because The New Paper journalist discovered that in fact, for several months, they have been quietly trying to claw back S$450,000 from FMSS. And they have also suspended paying their fees to FMSS, resulting in FMSS having to issue a lawyer's letter to the town council," said Mr Khaw.
"So if they had been paying in accordance to what has been agreed in the contract, then why are they suspending payment? Why are they trying to claw back the money? They never explained all these important questions at the rally yesterday."
Read more about GE2015 here.