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GE2015: AHPETC cannot determine profit margin of FMSS: WP
The Aljunied Hougang Punggol East Town Council (AHPETC) could not have set the profitability of its former managing agent, FM Solutions and Services (FMSS), and the contract that bound the town council to the payments to FMSS had been audited by the Attorney-General's Office (AGO), top Workers' Party members on Sunday said.
The party members were responding to a Ministry of National Development letter (MND) released on Saturday, pointing out that FMSS registered a post-tax profit of more than S$2 million in the fiscal year 2013/2014. This about quadrupled from the same period a year ago.
Over that same time, FMSS' revenue was up by just 30 per cent. MND said this showed that FMSS had been "grossly profiteering off its sole client, AHPETC".
FMSS was appointed by AHPETC from July 2011, but stopped its services to the town council from July this year. FMSS' main shareholders were the late Danny Loh and his wife, How Weng Fan. In addition to being the managing agent in that period, FMSS had its two main shareholders holding town council positions as secretary and general manager, respectively.
Responding, Hougang incumbent Png Eng Huat said the AHPETC cannot determine the profit margin of FMSS. He added later that the town council will be self-managed from here on. WP chairman Sylvia Lim also noted that the FMSS contract had been audited by the AGO, and said the latest MND response shows how the PAP machinery "can eat you up".
Mr Png said AHPETC will turn in a surplus for its FY14/15 accounts. He told the media that the AHPETC accounts will be turned in on time. The deadline is Monday. The town council had missed the submission deadline for its earlier set of accounts.
Both were speaking to reporters at a briefing to introduce new WP candidates at the party's headquarters.
The new potential candidates are shipping law firm partner Dennis Tan, 45; in-house legal counsel Gurmit Singh, 55; former associate librarian Mohamed Fairoz Shariff, 36; and Singapore Cancer Society manager Kenneth Foo, 38.
Read more about GE2015 HERE.