Written Reply to Parliamentary Question on the Auditor-General’s Office Report for the Financial Year 2021/22 on Cost Reasonableness of Contract Variations for Star Rate Items and Quotations Authenticity for Two MHA Development Projects

Question:

Mr Murali Pillai: To ask the Minister for Home Affairs on the Auditor-General’s Office (AGO) Report for the financial year 2021/22 regarding star rate items' cost reasonableness of contract variations and quotations authenticity for two development projects under MHA (a) whether any additional steps were implemented following AGO’s similar finding in relation to HDB for the previous financial year and, if not, why not; and (b) what further steps will be taken to strengthen the oversight of its project consultants in charge of assessing cost reasonableness of these contract variations.

Answer:

Mr K Shanmugam, Minister for Home Affairs and Minister for Law:

1.   The two MHA development projects audited by AGO commenced construction in FY2015 and FY2016 and obtained their Temporary Occupation Permits (TOP) in FY2018 and FY2020, respectively. They were completed prior to the issuance of AGO’s findings on HDB in 2021.

2.   MHA has reminded officers managing construction projects to adopt the good practices in Appendix S8-6 of the IM on Procurement. We have been conducting engagement sessions with Home Team Departments (HTDs) to share best practices such as lessons from the AGO’s audits and BCA’s Good Practice Guide.

3.   There are several layers of safeguards. At the same time, Member must note that there are a very substantial number of projects every year. While every effort is taken, human error (and sometimes bad conduct) cannot be completely eliminated. We are using technology increasingly to pick up anomalies, and are reminding officers of the processes. We will continue to do so.