A major accounting firm has been hired to help develop a code of governance for town councils, which handle estate maintenance in Housing Board towns.
In a statement yesterday, the Ministry of National Development (MND), which oversees public housing in Singapore, said it has appointed consultant Ernst & Young Advisory to assist it in drafting the code, which will highlight best practices to help town councils better execute their fiduciary responsibilities and improve accountability.
The code is a result of changes to the Town Councils Act passed last March. The review of the Act was first mooted in 2013 after heated parliamentary debates on the running of town councils and the handover of Aljunied GRC, which the Workers' Party took over from the People's Action Party after the 2011 elections.
Similar to the code for charities here, town councils will be encouraged to adopt these practices through a comply-or-explain regime.
The consultant will provide expertise on governance best practices as well as engage the town councils to better understand their current operations.
Ernst & Young Advisory will be assisting a seven-member advisory panel set up to advise MND on the development and implementation of the code.
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The panel will provide expert views and perspectives on the governance principles and practices which the town councils can adopt, taking into consideration the town councils' operating context.
MINISTRY OF NATIONAL DEVELOPMENT
The panel will be chaired by MND permanent secretary Ow Foong Pheng, and comprise Mapletree Investments head of group property management Foo Say Chiang; National University of Singapore (NUS) accounting professor Mak Yuen Teen; Jay Gee Group managing director R. Dhinakaran; Colliers International executive director Tang Chee-Charn; chartered accountant Tham Sai Choy; and NUS real estate professor Yu Shi-Ming.
Said the ministry: "The panel will provide expert views and perspectives on the governance principles and practices which the town councils can adopt, taking into consideration the town councils' operating context."
Colliers' Mr Tang said the goal of the panel is to ensure the code provides a broad framework to help town councils avoid sticky issues such as conflict of interest, but will not be a prescriptive handbook on how to handle individual tasks.
"We want town councils to have their own identities, and to still give them a free hand in managing their estates," he said.
The ministry will seek public feedback on the draft code in the second half of this year, and aims to introduce the code by early next year.
Implementation details will be shared at a later stage.
Mr Teo Ho Pin, who oversees the 15 PAP town councils, said the town councils "welcome the initiative to develop a code of governance and share best practices so as to ensure public accountability".
