KPMG AUDITORS CLAIM AHTC MADE MILLIONS IN IMPROPER PAYMENT, MAYBE GUILTY OF CRIMINAL CONDUCT

In KPMG’s latest report into WP-run Aljunied Hougang Town Council (AHTC), auditors claimed that improper payments of over $1.5 million were made to AHPETC former Managing Agent FMSS and FMSI.

The report said that AHTC overpaid FMSS to be its managing agent in excess of $1.2 million. This amounted to serious conflicts of interest and if these oversights were deliberate, could amount to criminal conduct and AHTC should understand its implications.

KPMG cited the example of Danny Loh who was both secretary in AHPETC as well as the shareholder of FMSS and owner of FMSI. They say Mr Danny Loh was in effect approving payments to himself. The other town councillors were also guilty of relinquishing a high degree of financial responsibility to Mr Danny Loh.

Out of the $1.5 million in overpayments to FMSS and FMSI, $600,000 has since been recovered by the town council.

In response to KPMG’s latest report, AHTC said it will study the report and respond to it in due course.