Enhancing financial processes at National Gallery Singapore

Response to parliamentary question on lapses by National Gallery Singapore identified in the Auditor-General’s Office FY2018/19 Report

Question

Mr Png Eng Huat: To ask the Minister for Culture, Community and Youth with regard to the report of the Auditor-General for FY2018/19, what is the reason for the AGO's conclusion that it may be too late to recover the overpayment of $13 million from the contractor in its audit finding of improper waiver of contractual provision for the National Gallery development project.

Response

1. Minister Grace Fu: Mr Speaker, please allow me to state that as AGO is an independent Organ of State, I’m here to represent MCCY and not AGO in this reply.
2. MCCY has reviewed AGO’s findings and is satisfied that there was no fraud involved in the National Gallery of Singapore’s (NGS’s) waivers of contractual provisions.
3. MCCY provided funding for this project to be directly managed by NGS, so as to achieve greater efficiency and savings from aligning the design and construction to its operational requirements.
4. NGS duly executed all contracts under its purview to deliver the project on time and below budget. The $13 million was not overpayment, but primarily waivers of penalties for additional time taken by the contractor to complete construction works. During the course of the project, NGS addressed all findings from MCCY’s progressive audits. MCCY’s fifth and final audit has since resumed after being suspended due to the AGO audit. Arising from the AGO audit and MCCY’s final audit, MCCY will work with NGS to enhance their financial processes and procurement policies.