HDB asks AHTC to agree to appoint third party to recover 'improper payments'

THE Housing & Development Board (HDB) has asked the Aljunied-Hougang Town Council (AHTC) to agree to the appointment of a "suitable third party to follow through to recover" what the HDB said were "improper payments".

It said this in a letter to AHTC dated Nov 4, after a KPMG report dated Oct 31, 2016, found improper payments totalling around S$1.5 million, of which KPMG said at least S$600,000 ought to be recovered.

HDB said in the letter that it was "imperative that immediate steps be taken to recover the improper payments", including legal action where necessary.

"As the improper payments may give rise to personal claims against existing town councillors, a suitable third party should have charge and conduct of these proceedings, on the town council's behalf," it added.