Response to parliamentary question on the report of the Auditor General

Question

Mr Mohamad Faisal Abdul Manap: To ask the Minister for Communications and Information and Minister-in-charge of Muslim Affairs in view of the Report of the Auditor General for FY12/13 (a) what are the reasons for the failure to refund Haj administration fees to the 2,369 applicants who cancelled their applications; (b) with regard to the tender called by MUIS in 2007 and 2010 for the supply of korban sheep and ancillary services (i) what is the basis for the contract to be awarded even though the selected vendor did not fulfil some of the mandatory criteria; (ii) what are the reasons behind the irregularities found in the tender process; and (iii) whether the principles of transparency, and open and fair competition have been properly adhered to during the process. 

Response

Minister Yaacob Ibrahim: 

Hajj Administration Fees  

MUIS collects Hajj administration fees to cover related operational costs including the cost to send a Hajj Mission comprising doctors, nurses and Assistant Pilgrim Officers to provide medical and welfare services to our pilgrims at the holy land. 

Every year, MUIS sends out notification letters to registrants to confirm if they would like to perform Hajj that year. If they do not respond to the first notification, MUIS tries to contact them again to find out if they would like to defer their Hajj or cancel their registrations so that refunds can be made. However, the response rate has been poor resulting in the accumulation of fees collected over the years. 

MUIS has tightened the management of its Hajj administration fees. In 2010, the Hajj rules were amended to allow registrants to defer their chosen pilgrimage year only once, as compared to previously where MUIS would allow multiple deferments or the continued roll-over of the registration if there was no response from registrants. Under the new rules, the registration will be cancelled after one deferment and the Hajj administration fees, less $50 for MUIS' administration cost, will be refunded if their registration is cancelled. 

MUIS will publish a notice in the newspapers to inform registrants whose registrations have been cancelled. MUIS will also list their names on the government portal for unclaimed monies (www.unclaimedmonies.gov.sg). For registrants who have passed on, MUIS will refund the fees to their next of kin, whom MUIS will reach via the last known addresses of the deceased applicants. 

Procurement of livestock for Korban

There is no active livestock sector in Singapore. We have to import livestock in modest numbers once a year for Korban during Hari Raya Haji. It is a religious rite that can only be carried out over a very short window period, making quality and delivery of the livestock crucial. 

MUIS undertakes the procurement of livestock for Korban by an open tender in Gebiz (Government procurement portal) for the procurement of the Approved Korban Vendor. As Singapore is a very small market, only very few vendors have come forward to bid for the tender to supply sheep for Korban. Two vendors put in bids in 2007, and only one in 2010.

One of the items which MUIS had previously specified as mandatory was the 'Service Plan Representation Sheet', a document which should contain various details such as the vendor's source of financing and identification of risk factors. While the intent was to ensure that the vendors were able to deliver quality livestock for Korban, MUIS notes on hindsight that it may not have been practical for vendors to submit such detailed information by the tender closing date. MUIS has since reviewed the mandatory requirements at the tender submission stage and simplified the tender requirements.  
Korban is carried out in mosques. The cost of ancillary services in the Auditor-General report refers to the mosque operation costs which include costs of tentage and other logistics. This was derived based solely on cost recovery. 

I am assured that the principles of transparency and open and fair competition had been adhered to. Nonetheless, MUIS acknowledges there are areas for improvement and will continue to work on strengthening its processes.