The Damning Report from KPMG: 4th Progress Report

For as long as anyone can remember, the accounts at Workers' Party-run town council has been in a mess. But now we discover that it is in fact in a much bigger mess that we thought based on the latest KPMG report.

AND YET, Pritam Singh is still NOW telling people that his town council will award the contract for a new Town Council Accounting System "shortly".

Can you imagine that?! They still have not put in place a credible accounting system!! They didn't get down to work after the special audit by AGO?

Where is their accountability and sense of responsibility? And honesty?

"PERVASIVE" was the word KPMG used to describe the lapses.

In addition to the 115 control failures identified by the special audit carried out by AGO, KPMG has identified another 70 control failures!

And KPMG concluded that unless its town councillors and senior management “set the right tone at the top”, and clearly define the standard of competence and accountability it expects from employees, the lapses could not be fully remedied.

It starts with the leadership at the top.

"Highly irregular" methods were used to process over $60 million worth of payments. 

 That's not a small amount.

AHTC also extensively used manual journal entries to record payments to third parties. There were over 48,500 such manual entries involving more than $60 million from 2011 to last year. This avoids records being entered into accounts payable, thus circumventing financial controls.

Temporary Clearing Accounts

There are 18 temporary clearing accounts used for more than one million transactions were not cleared swiftly. Why do they need so many temporary clearing accounts?

Dummy Vendor Code

Look, we are not dummies.

After the special audit by AGO that identified over 100 control failures, instead of introducing measures that eliminate those failures, AHTC introduced a dummy vendor code in 2015 that resulted in another control failure.

Should we say, "Well done, Workers' Party"?

The use of this dummy code meant duplicate or fictitious payments could be made without being detected.

In its conclusions, KPMG noted that that the town council’s lapses could not be fully remedied unless its town councillors and senior management “set the right tone at the top”, and clearly define the standard of competence and accountability it expects from employees.

“The Control Failures are pervasive, cutting across the key areas of governance, financial control, financial reporting, procurement and records management over the course of five years,” the audit firm said in its report.

 “We are of the view that there is an issue larger than the sum of individual lapses and that these Control Failures point to a failure in AHTC’s control environment.”

Can the leaders at the top set the right tone? That is a big question.

How much do you trust Sylvia Lim, the Chairman of Workers' Party and co-chairman of their town council?

Sylvia Lim has been caught lying - without batting an eyelid - more than once. She lied to voters. She lied to reporters. She lied in Parliament. She has been described as a liar by Justice Quentin Loh.

Did it bother her? No.

ASEM: a big idea from a small country

The 11th Asia-Europe Meeting (ASEM) just concluded in Mongolia.

DO YOU KNOW that ASEM was MOOTED BY SINGAPORE? ASEM was a big idea from a small country and ESM Goh Chok Tong played a key role. Here's what he did.
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Excerpt of Goh Chok Tong's speech at the S Rajaratnam Lecture on 17 Oct 2014:

"When I took over from Mr Lee Kuan Yew in 1990, survival and security concerns had receded.

18. We had stable relations with our immediate neighbours – Malaysia and Indonesia. Within the region, our neighbourhood was secure. The ASEAN member states, then just six of us, had also developed cooperative relations with one another.

19. So we shifted our foreign policy attention to increasing Singapore’s geopolitical and international economic space.
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26. The genesis of the Asia-Europe Meeting (ASEM) is an example of this - the value of understanding and aligning interests.

27. In the early 1990s, China had just begun to open up, but it was still very much shrouded by a bamboo curtain. At the same time, East Asian economies were growing rapidly and there was much international interest in the region.

28. While the so-called tiger economies were known to the West, few countries had direct links to the Chinese leadership, or had acquired an understanding of developments in China.

29. In October 1994, the World Economic Forum (WEF) held its regional meeting in Singapore with the theme of Asia-Europe Cooperation. That inspired me to think about linking Asia with Europe. I believed that the Europeans would be interested in forging closer links with China, the awakened dragon, and other Asian economies; and certainly, Asia wanted more investments from Europe. Singapore was well-placed to play this role; we had established strong links with the Chinese leadership, and were well-regarded as a reliable interlocutor.

30. MFA’s concept paper which we circulated to prospective members explained the strategic rationale:

“Three major centres of economic power – North America, Europe and Asia – are likely to dominate global trade and investment activities well into the 21st Century. It is vital to ensure that there are well-established channels of communication between the three centres. North America is linked to Europe through the rich network of trans-Atlantic institutions. East Asia and North America are linked by APEC and other Pacific Basin Networks. What is palpably absent is a strong high-level Europe-Asia link. This missing link needs to be bridged.”

31. The timing of my official visit to France in October was fortuitous. The French were due to assume the European Union Presidency in January 1995.

32. In a restricted meeting with French Prime Minister Edouard Balladur, I outlined the ASEM proposal. He saw the strategic benefits of the proposal and agreed to bring the EU members on board.

33. In turn, I was able to canvass ASEAN leaders’ support for this a month later, when APEC held its Summit in Bogor, Indonesia. So again it was good fortune. It was an APEC Summit, but I was also thinking of ASEM.

34. At the Summit, I first sought out Thai Prime Minister Chuan Leekpai. I explained the rationale for ASEM and then invited Thailand to host the first ASEM. He agreed. Why did Singapore not want to host it, when it came up with the idea? It’s because Thailand’s buy-in and active participation would remove any misperception that Singapore was proposing ASEM purely to boost its own international stature. After Chuan Leekpai, I briefed the other ASEAN leaders separately. They all welcomed the concept of ASEM.

35. ASEM was a big idea from a small country. We pulled it off because we did not think only of our own interests. We sold its strategic benefits to others, aligned their interests and ours, and secured their buy-in.

36. As the country which mooted ASEM, Singapore gained recognition for its strategic thinking and ability to deliver on an idea. But it would not have been possible had we not seen nor acted upon the confluence of interests between Asia and Europe.


https://www.mfa.gov.sg/content/mfa/media_centre/press_room/pr/2014/201410/press_20141017.html

Singapore is like a durian, says Lee Kuan Yew

Singaporeans love durians. But did you know that Mr Lee Kuan Yew once likened Singapore to the durian for its thorny outside and rich inside?

On Singapore being kicked out of Malaysia, Mr Lee Kuan Yew said in September 1965:

Some people think that just because we are a small place, they can put the screws on us. It is not so easy. We are a small place in size, and geography. But in the quality
of the men, the administration, the organisation, the mettle in a people, the fibre - therefore, don't try. That is why we got booted out.

If they could have just squeezed us like an orange and squeezed the juice out, I think the juice would have been squeezed out of us, and all the goodness would have been sucked away. But it was a bit harder, wasn't it? It was more like the durian.

You try and squeeze it, your hand gets hurt. And so they say, "Right, throw out the durian."

But inside the durian is a very useful ingredient, high protein. And
we will progress.

New PSLE Scoring System

This is how the PSLE scores will be calculated from 2021.

Primary 6 students sitting for the national exam in 2021 will not be receiving an aggregate “T-score”.

Instead, the marks they receive for each exam will fall into a range of eight bands, and the corresponding points added up, similar to the GCE ‘O’-Levels grading.

The best possible score is 4 points, and the worst is 32.

The current Primary One cohort will be the first to sit for exams under this new system.

Commenting on the changes, Acting Minister for Education (Schools) Ng Chee Meng said the new scoring system is intended to ease the pressure students face in competing against the performance of their peers.

And these are the placement outcomes under the new PSLE scoring system.

"Going forward, MOE will be engaging parents and students so that they better understand this new system and we will take the next few months to work with educators and schools to go through (the changes)," said Mr Ng.

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See also: https://www.facebook.com/SingaporeMatters/photos/a.710662802353449.1073741828.710654255687637/1037031986383194/?type=3&theater

T26 defective trains will have their new bolsters cast by Japanese supplier Kobe Steel

As the trains are still under warranty, shipping and rectification costs are borne by the supplier.

The trains were ordered in 2009.

The hairline cracks were found during routine inspection in 2013, more than 2 years after the trains were put into service and after they had each clocked an average of 300,000 km.

Computational tests found that despite the defects, the bolsters could still withstand pressure loads of more than three times the maximum measured levels on the system.

Kawasaki Heavy Industries, part of the Japanese-Chinese consortium that won the contract in 2009 to supply the trains is the lead contractor responsible for the design and procurement of parts such as the brake.

Vivian Balakrishnam in Parliament: the South China Sea issue and their resolution:

PRC Foreign Minister Wang Yi announced in April 2014 a four-point consensus after his trips to Brunei, Cambodia and Laos. There have been no public statements on this four-point consensus from ASEAN Member States to date.

2 ASEAN’s last public consensus position on the South China Sea was reflected in the Chairman’s Statement following the ASEAN Foreign Ministers’ Retreat in Vientiane in February 2016. The Chair, Lao PDR, had emphasised that all 10 ASEAN Foreign Ministers remained seriously concerned over the recent and ongoing developments in the South China Sea, and reaffirmed the need to enhance mutual trust and confidence. In addition, there was the need for all stakeholders to exercise self-restraint in the conduct of activities, and to pursue peaceful resolution of disputes in accordance with international law.

3 This sentiment was most recently conveyed by the ASEAN Foreign Ministers during the Special ASEAN-China Foreign Ministers’ Meeting which we held in Kunming, China, on the 14th of June. We had a very frank and robust exchange of views , including the situation in the South China Sea. ASEAN Member States and China broadly reaffirmed the importance of our multi-faceted and our mutually beneficial relationship. We also underscored the importance of ASEAN unity and Centrality in issues of common interest to ASEAN, including the absolute need for peace and stability and freedom of navigation and overflight in the South China Sea.

4 The media attention that occurred after that meeting on the failure to issue an ASEAN Joint Press Statement in fact reflects the importance the international community places on ASEAN’s unity and on the developments in the South China Sea. The 49th ASEAN Foreign Ministers’ Meeting is scheduled in two weeks’ time and I’m sure this issue will arise again.

5 On our part, I just want to emphasise that Singapore is not currently the Chairman of ASEAN and we are also, very importantly not a claimant state in the South China Sea. We have consistently stated that Singapore takes no position on the merits of the specific territorial claims and the Philippines’ arbitration proceedings against China was a national decision undertaken by the Philippines without consultation with the rest of us. Singapore’s position on this matter has also been clearly articulated in January 2013 by my predecessor, Minister K Shanmugam, here in Parliament. In brief, our position is that the overlapping sovereignty claims in the South China Sea should be settled by the parties concerned. However, this should be done in accordance with international law, including the 1982 UN Convention on the Law of the Sea (UNCLOS). All parties should refrain from provocative behaviour that could raise tensions in the South China Sea.

6 Territorial claims could be resolved by negotiations, adjudication or arbitration. The Six-Point Principles on the South China Sea that was adopted by ASEAN in 2012 clearly states that ASEAN supports the peaceful settlement of disputes, in accordance with international law, including 1982 UNCLOS. In fact, seven out of the ten ASEAN Member States have used adjudication and or arbitration to resolve disputes in the past. ASEAN at the highest levels has also consistently reaffirmed the principle that disputes should be settled peacefully, with full respect for legal and diplomatic processes, and this was most recently issued by our Leaders in the Sunnylands Declaration after the Special ASEAN-US Leaders’ Summit in February 2016.

7 As the current country coordinator for ASEAN-China relations, Singapore will fully support and we will facilitate the existing ASEAN-led processes to manage or to help manage the tensions in the South China Sea. We will continue to perform this role in a transparent, objective manner, with the aim of preserving ASEAN unity and credibility while simultaneously advancing our multi-faceted and mutually beneficial relationship with China. This includes the full and effective implementation of the Declaration on the Conduct of Parties in the South China Sea (DOC) and the expeditious conclusion of a legally-binding Code of Conduct for Parties in the South China Sea (COC).

8 We have made some, albeit slow, progress in confidence-building and conflict-prevention measures. At recent ASEAN-China Senior Officials’ Meetings on the Implementation of the DOC that were co-chaired by Singapore and China, we adopted the MFA-to-MFA hotline for maritime emergencies, which will be manned on a 24/7 basis. This hotline will help build confidence among parties to the DOC, and hopefully help prevent ground accidents. We also started preliminary discussions on a proposed Code for Unplanned Encounters at Sea to be applied in the South China Sea, on which I had previously briefed Members. We hope the observance of CUES, this Code of Unplanned Encounters at Sea, will send a positive signal and help manage the situation at sea and prevent miscalculations.

9 Our officials have also begun looking at possible elements of the Code of Conduct but quite frankly, this will take time. Progress has been extremely slow on this front. As country coordinator of ASEAN-China dialogue relations and as the co-chair of the DOC process, Singapore will continue to work closely with all stakeholders to advance ASEAN unity, credibility and centrality.

https://www.mfa.gov.sg/content/mfa/media_centre/press_room/pr/2016/201607/press_20160711_2.html

Halimah Yacob conferred an honorary degree of Doctor of Laws by National University of Singapore (NUS)

Her father died when she was eight. Her mother became an itinerant food hawker to raise her five children.

The young Halimah would wake up early to help prepare the food before going to school.

She had just $5 the day she matriculated at NUS.

But with a bursary from MUIS and part-time work, she graduated with honours and became a legal officer at the National Trades Union Congress.

Halimah Yacob is a trail blazer.

She was the first Malay woman to be elected an MP in 2001. She became the first female Speaker of Singapore's Parliament in January 2013.

She was also the first Singaporean to be elected to the governing body of the International Labour Organisation, a United Nations body that sets labour standards.

Madam Halimah Yacob has been conferred an honorary degree of Doctor of Laws by National University of Singapore (NUS), its top honour for individuals who have served the community and country with distinction.

Madam Halimah, 61, received her scroll from President Tony Tan Keng Yam, who is also chancellor of NUS, during a ceremony at her alma mater yesterday.

ST Photo

Asean Economic Community: No common currency

How Asean Economic Community is different from European Union: NO COMMON CURRENCY

The Southeast Asia economic bloc wants to preserve the competitiveness of the exports sector of each of the member economies.

So it will not adopt a common currency.

This was stressed by Le Luong Minh, secretary-general of the Association of Southeast Asian Nations (Asean), at the MAP International CEO Conference in Makati City on September 10 2013.

He said when countries form a single currency, they give up the power of an independent monetary policy and can no longer use tools, like interest rates, to address cyclical needs of a country's specific industries or financial services.

This point is reiterated by the Malaysian Minister for International Trade and Industry, Mustapa Mohamed when he told the BBC at the World Economic Forum held in Jakarta in April 2015 that the single market that the 10 nations of South East Asia (Asean) are forming by the end of the year will not include a single currency in their deliberations.

 
 http://www.rappler.com/business/economy-watch/38664-why-asean-will-not-have-a-common-currency

 http://www.bbc.com/news/business-32383929

How the Asean Economic Community differs from the European Union - Shanmugam

How Asean Economic Community is different from European Union: no free movement of labour, limited movement of skilled labour

Back in July 7 2015 Foreign Affairs Minister K Shanmgam said at a Business Luncheon organised by the German Chamber of Industry and Commerce on July 7 2015 that the ASEAN Economic Community (AEC) will not be the same as European Union.

He said that due to the lack of commonalities for living standards and common-value based system, the AEC will not incorporate free movement of labour.

Mr Shanmugam said: "There will be some movement but I think it has to fit within our current frameworks."

A core tenet of the ASEAN Economic Community (AEC) is to be a free flow of skilled labour.

However, it is only making concessions to eight professions at this point in time: engineering, nursing, architecture, medicine, dentistry, tourism, surveying and accounting. This is less than 1.5 per cent of the ASEAN labour force.

There are further limitations on the free movement of that small slice of skilled workers. There are minimum years of experience requirements, labour market tests, pre-employment requirements such as health clearances and numerous other domestic immigration and professional boxes to tick.

http://www.channelnewsasia.com/news/business/singapore/aec-will-not-be-the-same/1967528.html

http://www.cipd.asia/people-management-magazine/hr-news-opinion/asean-free-movement-labour#

Unemployed while employers struggle to find workers!

It's better to anticipate the challenges of the future and take steps to face them than to wait for problems to come upon you and then try to solve the problems.

In SkillsFuture, that is what the government is trying to do - address the challenges of a fast changing world in which many jobs will become irrelevant and new skills needed.

SkillsFuture is a national movement to enable all Singaporeans to develop to their fullest potential throughout life. Whichever stage of life you are in, whether you are in your schooling years, early career, mid-career or silver years, SkillsFuture will enable you to take advantage of a wide range of opportunities – to help you realise your aspirations and attain mastery of skills.

At a national level, SkillsFuture will play an important part in charting Singapore's next phase of development towards an advanced economy and inclusive society. Every individual’s skill, passion and contribution counts.

With the help of the SkillsFuture Council, education and training providers, employers, unions – you can own a better future with skills mastery and lifelong learning. Your skills. Your asset. Your future.

http://www.skillsfuture.sg/

http://www.bloomberg.com/news/articles/2016-07-01/spain-is-running-out-of-workers-with-almost-5-million-unemployed

Against Elections - David Van Reybrouck

At least one man who believes in democracy is AGAINST ELECTIONS.

That man is Belgian historian, David Van Reybrouck. According to him, the voting system is broken.

Elections, he says, are the fossil fuel of politics. Once upon a time they gave a huge boost to democracy but now they cause colossal problems.

Brexit is an example.

In Brexit, a drastic decision was taken through a primitive procedure - a one-round referendum that is based on a simple majority. Thus was the fate of a country, of an entire continent, changed - just 'by the single swing of such a blunt axe, wielded by disenchanted and poorly informed citizens'.

In Reybrouck's view, democracy is not the problem. The problem is voting. Democracy has been reduced to elections. Indeed, it has become synonymous with elections.

When western countries call for democracy in countries ravaged by conflict, what they really mean is that these countries must hold elections.

BUT election can have all kinds of outcomes including violence, ethnic tensions, criminality and corruption. Elections do not automatically foster democracy but may instead prevent or destroy it, a fact that, in Reybrouck's view, is often conveniently forgotten in the single-minded focus on elections.

In short, elections actually undermine the democratic process.

Unlike in the past where people followed the political theatre on radio, television or the internet, today they can respond to it from second to second and mobilise others.

Social media gives people a voice but "the nature of this new political involvement makes the electoral system creak at the joints all the more".

Politics has become a soap opera with commercial and social media creating an atmosphere of perpetual mudslinging, and the most popular politicians are those who can bend the media to their will.

Democracy, as Reybrouck says, flourishes by allowing a diversity of voices to be heard and in order to keep democracy alive, it must not be reduced to voting alone.

Elections and referendums have become dangerously outmoded tools if they are not enriched with more sensible forms of citizens’ participation, he says.

Reybrouck thinks sortition is the remedy. Sortition is democracy by lottery. It works this way. You draw from the pool of names of every eligible voter, a certain number of names, and these people whose names are drawn become your legislators! With this method, there is no election fever.

Sortition was the main system for choosing political officials in ancient Athens. The Athenians considered sortition to be an especially democratic way of choosing certain decision-makers.

Singapore has a better solution than sortition.

That solution is our NMP Scheme. In this scheme, well qualified men and women in their respective fields and contributions are nominated as MPs to represent and speak on behalf of specific groups of people or interests. They are the diverse voices that allow democracy to flourish.

When you can see that democracy is not about election, that democracy is not synonymous with election, but that it is about having a diversity of voices flourishing, then you will see that far from being undemocratic, the NMP Scheme enhances the democratic process.

References:
http://www.theguardian.com/politics/2016/jun/29/why-elections-are-bad-for-democracy

http://www.thedailybeast.com/articles/2014/11/08/is-it-time-to-take-a-chance-on-random-representatives.html