Strengthening Oversight of Project Consultants Assessing Cost Reasonableness of Contract Variations
Ministry of Home AffairsSpeakers
Summary
This question concerns the Auditor-General’s Office (AGO) findings regarding cost reasonableness for contract variations and quotation authenticity in two Ministry of Home Affairs (MHA) development projects. Mr Murali Pillai inquired about additional steps taken following similar findings for HDB and future measures to strengthen oversight of project consultants. Minister for Home Affairs Mr K Shanmugam explained that the projects were completed before the HDB findings, but MHA has since shared best practices from the AGO and Building and Construction Authority. He highlighted that officers are reminded to adopt Instruction Manual procurement guidelines and that technology is being used to detect anomalies. Minister for Home Affairs Mr K Shanmugam noted that while layers of safeguards exist, the ministry continues reminding officers of processes to mitigate human error or misconduct.
Transcript
19 Mr Murali Pillai asked the Minister for Home Affairs on the Auditor-General’s Office (AGO) Report for the financial year 2021/2022 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.
Mr K Shanmugam: The two Ministry of Home Affairs (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.
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.
There are several layers of safeguards. At the same time, the 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.