SINGAPORE – An audit of Singapore’s Covid-19 expenditure has scrutinised $33.2 billion out of the $72.3 billion spent in the 2020 and 2021 financial years, and did not uncover major lapses, said the Public Accounts Committee.

The parliamentary watchdog presented its findings in a report released on Jan 18 after it reviewed the two-part audit by the Auditor-General’s Office (AGO).

“Given the substantial spending under extenuating circumstances and a fluid crisis situation, the committee acknowledged and commended the overall effectiveness of the risk management processes in place,” it said.

The committee, comprising eight MPs, is tasked with scrutinising all public spending.

The AGO’s annual audit of government accounts for the 2021/2022 financial year released in July 2022 had flagged inadequate controls and checks by three government agencies in relation to their Covid-19 spending.

These resulted in lapses such as possible salary overpayments, inadequate checks on price reasonableness in contracts and discrepancies in payment claims.

These findings were based on a thematic audit on samples covering 18 per cent of the total Covid-19 expenditure by the three agencies, which spent $1.51 billion on manpower services, accommodation facilities and meal catering from January 2020 to March 2021.

In January 2023, the Public Accounts Committee noted in a report to Parliament that $72.3 billion spent on Covid-19 in FY2020 and FY2021 were not covered in the AGO’s thematic audit.

Given the unprecedented complexity and scale of government operations to fight Covid-19, the watchdog said a comprehensive review should be done to ensure public funds were spent properly, and to ensure that any loss of public monies is reported and recovered.

In February 2023, Deputy Prime Minister and Finance Minister Lawrence Wong said the AGO would scrutinise some $32.3 billion of various agencies’ Covid-19 spending as part of its annual audit of government accounts.

Programmes audited would include the Jobs Support Scheme, Rental Relief Framework (Cash Grants), Rental Support Scheme and SingapoRediscovers Vouchers scheme.

The committee then conducted an inquiry, reviewing memoranda from ministries and public agencies, and conducting hearings involving the permanent secretaries from the Ministry of Finance (MOF), the Ministry of Culture, Community and Youth and the Public Service Division (PSD).

In a statement on Jan 18, committee chair Foo Mee Har said: “It is imperative for the public service to persistently uphold standards and integrity to sustain high public trust. We must have zero tolerance for corruption at all levels of the public service.

“To maintain Singapore’s strong track record of incorruptibility, it is crucial that the Government ensures governance frameworks are effectively communicated and diligently implemented across the public service.”

She added: “Rigorous enforcement is not just our duty; it is a cornerstone of our continued success and public confidence.”

MOF and PSD also told the committee that there are governance frameworks at multiple levels of Government to ensure proper accountability for the use of public funds, the report noted.

For example, PSD said that under the internal disclosure policy framework in the civil service, officers can report to their permanent secretaries any wrongful practices that they have observed in their ministries. There is also now a non-retaliation clause to protect officers who make reports in good faith.

The committee also noted that for the period of 2018 to 2022, the number of corruption cases in the public sector remained low at an average of 4 per cent of all individuals prosecuted in court each year.

The report also discussed broader issues which could impact spending, financial governance and controls in the public sector.

These issues concerned aspects such as maintaining integrity and trust in the public sector, risk management and digitalisation, specifically when it comes to ensuring the resilience of the government information technology (IT) infrastructure and service delivery.

To this end, the watchdog urged the establishment of a high-level oversight mechanism to address risks that require a centralised response, in the case of significant risk events that require a whole-of-government approach.

This is to tackle common areas of concern across the public sector, which include data loss, IT system failures, challenges in talent attraction and retention, as well as macroeconomic risks, it said.

Ms Foo said: “While digital transformation has brought many positive benefits, the Government must continue to prioritise investments in expertise. This is crucial to guard against cyber-security threats, data security vulnerabilities and counterparty risks.”

She added that a pre-emptive focus on artificial intelligence-related risks and a robust governance strategy must be accelerated.

“Managing IT-related risks and ensuring resiliency in IT systems are paramount for the public sector. This approach is key to maintaining the momentum of our digital transformation journey,” she said.

The committee said it also recognised MOF’s continuous efforts in enhancing the risk management capabilities across the public sector.

About 90 per cent of agencies have implemented or are in the process of putting in place baseline enterprise risk management frameworks by 2024. Such frameworks create an approach to identifying and monitoring risks within the context of a given organisation.

The committee also said the Government should take swift action to retain in-person services, even as many government services go online. It urged the Government to expand the number and reach of physical ServiceSG centres, which offer residents one-stop access to a wide range of government services.

“This approach would significantly aid those less confident in digital interactions,” it said, adding that ground feedback indicated that many seniors find digital transactions challenging as government services move increasingly online.

There is a need to institutionalise processes that strengthen protections against scams as well, it noted, especially for users who are less IT-savvy.

Ms Foo said: “Even as we go digital, it is imperative not to overlook the significance of tangible, human assistance. Not everyone is comfortable with online services.

“Our objective should be to guarantee that every member of our community receives the necessary assistance to transact with the Government in a manner most suited to their needs and comfort.”