Media Release – 15 May 2013

MEDIA RESPONSE TO MND’S COMPARISON OF MA RATES (NO. 2)

We continue to be puzzled by MND’s assertion that our Managing Agent’s rate is 20% higher than the rate under the PAP for Aljunied Town.

MND’s latest response of 14 May 2013 claims that our media release earlier that day showing that the increase was only 4.16% gave an incomplete picture. MND stated that they compute the MA rate by dividing the MA tender rate by the total number of residential and commercial units. However, even adopting MND’s methodology of including both residential and commercial units, we find that the rate difference should only be 4.55% and not 20%, for reasons explained below.

As MND knows, the MA’s contract for Aljunied under the PAP from 2010 to 2013 provided for cost increases year on year i.e. the fee for 2011 is higher than for 2010, and 2012 is priced higher than 2011.  FMSS’s contract commencing 2012 provides a similar staggered pricing methodology. The rationale for cost staggering is obvious in view of inflationary pressures on costs each year.

A comparison of the pricing across an equivalent year of 2012 would show that the difference in rate is at most 4.55%.

Description CPG – ATC*
(FY 12)
$ per unit
FMSS – AHTC
(FY 12)
$ per unit
Percentage Difference
Rate per Residential/Commercial Unit 7.25 7.58 4.55%

                *Contracted rate by CPG if they had continued as MA

We are unable to compare future years as there is no rate for the PAP MA after 2013.

As explained in our media release yesterday, the scope of services provided by FMSS was enhanced as compared to that provided under the previous administration.  Aljunied-Hougang TC had also taken the extra step of commissioning a special audit of the tender award to ensure compliance and good governance practices, with steps taken in due diligence to ensure value for money for the Town Council.

SYLVIA LIM
CHAIRMAN
ALJUNIED-HOUGANG-PUNGGOL EAST TOWN COUNCIL AND THE WORKERS’ PARTY

15 May 2013