SINGAPORE — Despite the scrutiny on the Aljunied-Hougang-Punggol East Town Council (AHPETC) over its financial management lapses, Workers’ Party (WP) chairman Sylvia Lim declared yesterday (Sept 2) that her party is ready to take over and manage another town council.

“So, are we ready to take on another town council? Yes,” said Ms Lim, who was the last speaker at the WP’s maiden rally for this General Election (GE).

Ms Lim said the WP has learnt from the experience of taking over Aljunied Group Representation Constituency in terms of town council management and the challenges involved. She also noted that following the 2011 GE, the WP had seven elected Members of Parliament with “direct town council experience at the GRC level”. Now, the party is aware of the potential risk areas on town council management.

“We have learnt a lot from the Auditor-General’s Office (AGO) audit, and made improvements to the areas highlighted. Many of the observations from our former auditors have been cleared with some remaining that required information from other parties,” she said.

Ms Lim also sought to dispel what she called the four “myths” that she said the PAP had been spreading about AHPETC: The WP uses town council to “reserve contracts for friends”, it overpaid its former managing agent FM Solutions and Services (FMSS), cheques were signed without proper safeguards, and the town council was in financial difficulties.

Pointing out that AHPETC “does not and cannot reserve contracts for friends”, she explained how open tenders were called for the years that the WP had run the town council, except for one year when it waived the tender — which was allowed under the rules — because of the urgency and public interest in working on the handover after the 2011 GE.

“Did we breach any town council financial rules in awarding contracts to FMSS? No, we did not. Did we act in the residents’ interest? Yes, we did,” Ms Lim said.

She added that the allegation of overpayment was not made by the AGO or by any auditors. “It is the mantra of the PAP Government and its proxy, the MND (Ministry of National Development),” she said. She stressed that any payment to FMSS was countersigned by her — in her capacity as the town council chairman — or AHPETC vice-chairmen Png Eng Huat and Pritam Singh.

While there were initial financial challenges, the residents’ needs were the priority, she said. She cited the example of how the town council installed a lift at a market “with no funding from the Government” to benefit the elderly and the disabled.

Despite all the challenges it faced, AHPETC has “managed to turn things around”, she said. After two years of deficits, the AHPETC’s latest audited financial statements — which were filed on Monday — showed that it would have a S$1.7 million surplus for financial year 2014/15, if the S$7.2 million in government grants withheld by the MND had been disbursed. The MND has been withholding grants from AHPETC, as it has said it has no guarantee the money would be used properly. AHPETC, meanwhile, has asked that the full sum be paid to its sinking fund account.