Media Release – 16 May 2013

MEDIA RESPONSE TO MND’S COMPARISON OF MA RATES (NO. 3)

We refer to the media statement of the Ministry of National Development (MND) issued in the late evening of 15 May 2013.

There is no contradiction in MA rates nor missing money as MND suggests. 

To recall the sequence of events: When we first gave our MA rate for FY 2012 based on residential units, MND said our computation should be based on residential and commercial units, so we then re-computed the MA rates based on MND’s methodology, which continued to show at best a 4.5% increase over the PAP MA’s rate for Aljunied for 2012, not 20% as claimed. 

In last evening’s release, MND unjustifiably suggested that $1 million was missing.  MND simply took FMSS’ MA rate for FY 2012 for the first year and multiplied it by 3 to arrive at $15.8m, when we had clearly stated earlier that the MA contract for the 3 years (i.e. 2012, 2013 and 2014) provided for staggered pricing, with increases in costs factored in each year.  The total contract price declared is correct at $16.75 million.  If MND is still unclear about the matter, clarification can always be sought before erroneous assertions are made.

We can assure residents that based on the scope of works, due diligence has been taken to ensure value for money for the town council.  The tender award was also specifically audited.

We understand that there may be public fatigue on this protracted debate on the MA rates, which is in any case deviating from the core issue of the sale of town management software with the one-month termination clause to Action Information Management Pte Ltd.  Despite our disagreement with the MND’s findings on the AIM transaction, we shall use our best endeavours to have a professional working relationship with MND for the sake of our residents and the public.

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

16 May 2013