Declarations by Town Councils of Secretaries who Fall under New Disqualification Criteria
Ministry of National DevelopmentSpeakers
Summary
This question concerns the implementation of new disqualification criteria for Town Council secretaries and key officers under the Town Councils Act. Ms Sylvia Lim asked for the number and names of Town Councils that have declared key officers falling under the disqualification criteria in sections 20(1A) and 20(3). Second Minister for National Development Desmond Lee explained that the 1 May 2017 amendments disqualify auditors and Managing Agent executives from key Town Council roles to minimize conflicts of interest. He clarified that the disqualification applies to owners, substantial shareholders, and C-suite executives, rather than regular employees of the Managing Agent firms. The Minister confirmed that all Town Councils reported to the Ministry that their key appointment holders do not fall within these new disqualification criteria.
Transcript
13 Ms Sylvia Lim asked the Minister for National Development (a) to date, how many Town Councils have declared to the Ministry that their secretaries or relevant key officers as defined by section 20 of the Town Councils Act come under the new disqualification criteria spelt out in sections 20(1A) and 20(3) of the Act; and (b) which Town Councils have made such declarations to the Ministry.
The Second Minister for National Development (Mr Desmond Lee) (for the Minister for National Development): Mr Speaker, the Town Councils Act was amended this year to disqualify a Town Council's Managing Agent and its auditor from being appointed to key roles in a Town Council, such as the Secretary, the General Manager, the Finance Manager and their deputies, to minimise the risk of conflict of interest.
The amendments took effect from 1 May 2017. The disqualification criteria in sections 20(1A) and 20(3) of the Act apply to an individual who is an auditor of the Town Council, or an owner, a substantial shareholder or an executive decision maker of the Town Council's Managing Agent firm. An executive decision maker includes C-suite executives, such as the Chief Executive Officer, Chief Financial Officer or Chief Information Officer, but does not include regular employees of the Managing Agent who carry out their duties under the direction of their employer.
In May 2017, the Ministry of National Development (MND) had requested all Town Councils to inform MND if any of their existing key appointment holders fell within the new disqualification criteria set out in the Act. All Town Councils have informed MND that their key appointment holders do not fall within the new disqualification criteria.