20 May 2015

The Absurdity Of Giving Half Of Conservancy And Service Fee Grants

According to the Ministry of National Development ("MND"), all town councils are entitled to grants-in-aid (also known as the conservancy and service fee operating grants)[1].

MND has, however, withheld the grants-in-aid to Aljunied-Hougang-Punggol East Town Council ("AHPETC") for the financial years ended 31 March 2014 and 2015 because MND considered it to be unconscionable to give the grants-in-aid, which are public moneys, without proper safeguards, inasmuch as AHPETC's audited financial statements were qualified[2].

Notwithstanding that and in response to AHPETC Chairperson Sylvia Lim’s appeal, MND offered to disburse half of the grants-in-aid provided AHPETC comply with the law[3].

08 May 2015

Technically Insolvent Town Councils

For the purposes of enabling the town councils to carry out their functions under the Town Councils Act and any other Act of Parliament, the Ministry of National Development ("MND") from time to time makes grants-in-aid to the town councils. Such grants-in-aid (also referred to as conservancy and service fee operating grants or government grants) enable the town councils to subsidise the service and conservancy fees for residents living in 4-room and smaller flats.

What would happen if MND were to withhold the conservancy and service fee grants to a town council, just like it had done to Aljunied-Hougang-Punggol East Town Council for financial years 2014 and 2015.

Let's see.