MND, AHTC to engage on withheld grants after order
Singapore
FOLLOWING the order on Friday by the apex court to have AHTC appoint accountants to fix its breaches of the Town Councils Act, the Ministry of National Development (MND) and Aljunied-Hougang Town Council (AHTC) said they will engage again to resolve the longstanding issue of withheld grants.
On Friday, the Court of Appeal ordered AHTC to make good on all outstanding sinking fund transfers within three months, and to rectify contraventions of the Town Councils Act.
Critically, it ordered AHTC to appoint accountants, subject to HDB's consent, to assist on non-compliance issues; report monthly to HDB on what the town council has done to fix the breaches until the contraventions are fully rectified; and establish if any past payments made by AHTC were improper and if they need to be recovered.
"MND will disburse the S&CC (service & conservancy charges) grants once the appropriate safeguards are in place," it said in a statement. "MND stands ready to re-engage AHTC on the above so that the grants can be disbursed soon, with the necessary safeguards in place. We also look forward to the town council's cooperation with HDB in the carrying out of the court orders."
AHTC said it will comply with all the orders made by the court. It said it fully accepts and respects the Court of Appeal's judgment.
"The town council acknowledges its role as a guardian of public funds. We assure the Ministry of National Development that government grants or grants-in-aid are used solely for the upkeep of the town and in the interests of all residents," it said.
"In view of the judgment, we will work with the ministry to facilitate the prompt transfer of the outstanding grants to AHTC, which have been withheld for two years, so it can make the remaining outstanding quarterly sinking fund transfers as required by law."
