Police investigate PUB contract irregularities after AGO findings

25 significant lapses were discovered by AGO in its overall evaluation.

PUB lodged a police report to investigate possible irregularities in quotations for star rate items under a construction contract, after the Auditor-General’s Office (AGO) raised concerns about their authenticity and whether value for money was obtained.

According to AGO, test checks found possible irregularities in quotations for 23 of 25 star rate items, worth $148,900 or 94% of those reviewed, under a $6.75m waterscape construction contract managed by a consultant for PUB, raising concerns over the authenticity of the quotations and whether value for money was achieved.

Star rate items refer to items for which rates are not listed in the contract.

In response, PUB told AGO that it deferred the matter to the police. It also put in place measures to manage star rate items, including annual procurement townhall sessions and digital communications to improve awareness and competency levels of its officers, and checks on star rate items during the annual audits of procurement and contract management by its internal auditors.

In addition, PUB said it had strengthened its consultancy contracts for construction projects by incorporating a star rate assessment guide into such contracts.

The news comes following AGO’s unmodified audit opinion on the Government’s financial statements for FY2024/25 of which 132 observations were made, with 25 considered significant lapses.

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