a. Possible irregularities in quotations for “star rate” Items
b. Development project savings not promptly declared
Possible irregularities in quotations for “star rate” Items
AGO’s test checks found possible irregularities in quotations provided for 110 (out of 295) star rate items (totalling $2.19 million) under the main construction contract (with a contract value of $450.91 million). As a result, AGO assessed that there may be inadequate assurance that value for money had been obtained for the star rate items. As AGO had concerns over the authenticity of the quotations provided, AGO recommended that the State Courts carry out internal investigations.
The goods and services that were the subject of this observation have been delivered. As a precautionary measure, additional protocols have been established to strengthen the management of star rate items, including the strict implementation of guidance from MOF on good practices in detecting irregularities in quotations that was issued in 2021.
Development project savings not promptly declared
AGO observed that the State Courts did not declare project savings which had arisen from lower tender rates, to the Ministry of Finance (MOF) in a timely manner as required by MOF Finance Circular Minute issued in 2014. AGO highlighted that the purpose of the MOF Finance Circular Minute was to ensure fiscal prudence and discipline in the use of public funds, to enable MOF to redirect the savings towards other projects.
State Courts of Singapore