ahem.. not the UNSW fiasco, but just as bad..
Today – 26 May 2007, p18
EDB lapses revealed
Government audit finds it allocated $105 million without board's approvalIT was the first time that the Economic Development Board (EDB) came under the scrutiny of the Auditor-General — and it did not pass with flying colours.
A report by the Parliament's Public Accounts Committee revealed that the EDB — the Republic's powerful economic agency — had shown lapses in its governance structure and financial operations.
In particular, a sum of $105 million allocated in the EDB's 2005/06 budget was not submitted to the EDB's board for approval, according to the report released on Friday.
The EDB's board had also allowed staff to grant loans and to borrow without reporting back to the board, it charged.
"These matters were of particular concern because this was the first audit of the EDB undertaken by the Auditor-General," said the report, "the audit had given rise to a large number of observations in which the board had not established proper internal control procedures."
The annual report by the committee — made up of MPs including Mr Cedric Foo, Mr Liang Eng Hwa and Ms Josephine Teo — also highlighted the financial irregularities and unfair payment practices of other Government bodies.
For instance, it said that the Ministry of Information, Communications and the Arts (MICA) had asked some of its suppliers to change the dates or credit terms on invoices "apparently to conceal late payments".
"Although the cases reported might not be significant in monetary terms, the committee took a very serious view of this issue because it casts doubt on the integrity of the Public Service and the reliability of the Government's financial information," the report said.
It also highlighted that an overseas mission of the Ministry of Foreign Affairs had circumvented the dual control on cheque payments by having cheques pre-signed when its signatories were on home leave to Singapore.
Concerned whether this practice was pervasive, it noted: "Being away from the Ministry headquarters, these missions would have an increased risk of fraudulent payments."
In addition, it also pointed at deficiencies in the land sales procedures of the Sentosa Development Corporation (SDC), the developer of the Sentosa Cove residence.
"The instances of deficiencies ... would cause the public to view the land sales as not being transparent, fair and competitive," it said.
The committee was also concerned that the Auditor-General found the certification of the land and buildings by the Ministry of Law to be "inaccurate".
Does this inaccuracy indicate that the reliability of the records has been compromised, it asked?
In reply, the Ministry of Law told the committee that the omission of a land parcel from the certified listing was due to "human error".
Also, the Government land and buildings record had been converted from a spreadsheet system to a new computerised system, hence the likelihood of similar lapses would be "extremely low" in the future.
Originally posted by av98m:
I just want to know how much money EDB lost in the UNSW venture