We refer to the KPMG Report dated 31 October 2016 entitled “Report on Improper Payments”.
KPMG’s work involved 8 months of intensive audit, deploying at least 72 KPMG personnel based in our office, using forensic data analytics to thoroughly examine millions of accounting entries and documents. KPMG also used corporate intelligence procedures, KPMG’s proprietary Vendor Anomaly Detection Model and corporate database analysis tools to scrutinise Aljunied-Hougang Town Council’s (“AHTC”) MPs, Councillors and Staffs’ personal particulars and work details, past and present, of spouses, children, parents and siblings.
We note that the SGD60 million direct payment journal entries highlighted in the July monthly report on progress, which had caused undue public alarm, has been addressed in this payment report. AHTC notes that in ‘Appendices to Report on Improper Payments’ section D.3.2, KPMG had conducted testing using the binomial statistical sampling approach and found no duplicate or fictitious payments.
We also note KPMG’s broad definition of improper payment includes payments which are in breach of Town Council’s internal control procedures and policies. KPMG acknowledged that while some payments were deemed to be made improperly, they do not appear to have an effect on the legitimacy of the underlying payments, hence, may not necessarily be recoverable.
AHTC is studying the report in detail at this moment.
ALJUNIED-HOUGANG TOWN COUNCIL
01 November 2016