Reply to Media Queries on Auditor-General's Office's Annual Report for Financial Year 2017/2018

MINDEF thanks the Auditor-General's Office (AGO) for their observations and acknowledges the lapses in contract management, and management of user access to the Electronic Procurement System. 

MINDEF overpaid for grass-cutting because of the contractor's errors in measuring the grass cutting areas. MINDEF's Facilities Management Agent did not detect these errors even though it was responsible for verifying the services provided and the amounts claimed by the contractor. MINDEF will recover the overpaid amounts from the contractor and will also penalise the Facilities Management Agent for failing to verify the contractor's claims accurately. MINDEF will tighten its contract management processes, such as by using technology to reduce manual processes. 

MINDEF's investigation showed that the lapses in the management of user access rights to the Electronic Procurement System were due to failures to adhere to established processes and did not result in any unauthorised financial/procurement transactions. Following AGO's findings, MINDEF has removed all unneeded access rights to the Electronic Procurement System and disciplined those who were responsible for the lapses. We have also started to automate the process of reviewing access rights to the Electronic Procurement System; this is expected to be completed by Sep 2018. 

MINDEF has also taken disciplinary actions against those personnel who shared their user accounts to perform procurement activities. No public monies were lost as MINDEF has several policies and systems in place to prevent unauthorised procurement activities.