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July 15, 2026

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Lapses in HDB season parking eligibility checks, MOH contracts among issues flagged in Auditor-General report

About S$25 million in HDB season parking and family season parking applications or renewals were approved despite applicants not meeting the criteria.

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SINGAPORE: Weaknesses in the Housing and Development Board’s (HDB) eligibility checks for season parking – involving nearly S$25 million (US$19.4 million) in improperly approved applications – and lapses in contract management under the Ministry of Health (MOH) were among the issues flagged by the Auditor-General’s Office (AGO) in a report published on Wednesday (Jul 15).

For the 2025/2026 financial year, AGO audited government financial statements covering 16 ministries and eight organs of state, along with three statutory boards, four government-owned companies and two other accounts.

Across these entities, auditors identified lapses in areas ranging from contract and revenue management to oversight in grant administration and financial controls. Weaknesses were also flagged in IT controls and possible irregularities in records provided for audit.

Several ministries and agencies, including HDB and MOH, have made police reports.

HDB: SEASON PARKING LAPSES

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HDB featured prominently in this year’s report, with auditors flagging weaknesses in its eligibility checks for season parking and family season parking.

These involved applications and renewals totalling about S$24.99 million that were approved despite applicants not meeting the criteria.

Auditors also found that commercial vehicles were charged incorrect season parking rates, resulting in an estimated S$1 million in under-collection of fees.

The AGO also noted that HDB did not exercise adequate oversight of its contractor engaged to provide patrol and enforcement services for its car parks. As such, HDB may have overpaid about S$9.7 million for patrol and enforcement services that were not performed.

Beyond parking, the audit found weaknesses in HDB’s eligibility checks for housing initiatives such as the Married Child Priority Scheme, the Proximity Housing Grant (PHG) scheme and the CPF Housing Grant scheme, resulting in flats allocated and grants disbursed to ineligible applicants.

There were also issues with contract management, including errors in the valuation of works under the Home Improvement Programme and possible irregularities in quotations for star rate items – referring to items for which rates are not listed in a contract.

HDB said it takes AGO’s findings seriously and has taken “immediate steps” to rectify the irregularities identified and strengthen its processes and controls.

HEALTH MINISTRY: CONTRACT MANAGEMENT

An audit of a medical facility project under the Ministry of Health (MOH) – identified as the National Cancer Centre Singapore (NCCS) building – found multiple lapses in contract management and financial governance.

Work on the building started in 2013 and was completed in 2022.

The AGO flagged issues in the handling of construction and consultancy contracts by MOH Holdings (MOHH), which is the holding company for Singapore’s public healthcare institutions.

These included approvals obtained only after works had begun or been completed, and fees not computed in line with standard procedures.

There were also weaknesses in the valuation of contract variations, resulting in an estimated net overpayment of S$363,300 as well as loss and expense payments totalling S$2.2 million not properly substantiated, the AGO said in its report.

“We also noted a lack of due diligence checks before the final account was issued. Despite being aware of its internal audit’s findings on contract management lapses, MOHH proceeded to issue the final account and recommended that MOH make payment,” AGO added.

“It subsequently reopened the final account to address the internal audit findings and new variation works. Overall, there was inadequate assurance that full value had been obtained for the public funds spent on this project.”

Separately, MOH was found to have called and awarded 12 tenders and a quotation worth about S$30.8 million before obtaining required approvals, in some cases even before in-principle approval for the project – contravening Ministry of Finance rules.

The ministry said in response to the AGO report that it takes the findings “very seriously” and has since taken steps to address the lapses, adding that there was no indication of deliberate wrongdoing.

“MOH and MOHH will continually strengthen our systems and controls to ensure rigour, consistency, and accountability across all ongoing and future projects, to prevent recurrences of the lapses highlighted in the AGO report,” the ministry said.

GAMBLING REGULATOR: EXCLUSION CHECKS

At the Gambling Regulatory Authority (GRA), auditors found lapses in efforts to prevent excluded individuals and certain categories of employees from gambling.

According to the AGO, between Apr 1, 2023 and Mar 31, 2025, a total of 120 excluded individuals were allowed to enter casinos.

Among them, 107 had entered casinos 1,100 times in total, with some repeat entries only flagged months later. They were subsequently reported by casino operators to GRA.

Thirteen cases went unreported.

Another 26 individuals were allowed to enter despite exceeding monthly visit limits.

Separately, 79 Singapore Pools accounts linked to excluded individuals were not closed, with 32 of them placing over 1,300 online bets worth about S$75,800 from Apr 1, 2024 and Dec 31, 2025.

The lapses were attributed mainly to data and system issues, including outdated identification records and gaps in automated screening.

Authorities said these have since been rectified as of February, and investigations into possible offences by the excluded individuals are ongoing.

OTHER LAPSES FLAGGED BY AGO

MOM: FOREIGN WORKER LEVIES

Auditors found that MOM charged foreign worker levies above stipulated rates for work permit holders in the marine shipyard sector from January 2026.

This resulted in about S$4.82 million in overcharges over two months.

The discrepancy arose because revised levy rates were implemented before the corresponding subsidiary legislation was updated.

“MOM informed us that it had since updated the levy rates in the subsidiary legislation, which took effect on Jun 1, 2026,” the AGO report said, adding that the ministry will refund affected firms through offsets.

The ministry said it has tightened processes, including ensuring legal changes are in force before system implementation and introducing additional checks to prevent similar lapses.

MOE: POSSIBLE FALSIFIED APPROVAL EMAILS

The Education Ministry has lodged a police report after possible falsification of approval emails relating to the appointment of new officers.

The AGO said it had selected 22 officer appointment cases between April and December last year for checks on whether proper approvals had been obtained.

“Following our request for supporting documents, MOE informed us of possible falsified approval emails,” AGO said.

Government agencies are required to obtain approval from the relevant authority before making an offer of appointment.

“We noted weaknesses in the appointment process, which in our view, did not provide adequate assurance that there was proper scrutiny by the approving authority to ensure that the appointments were supported and justified,” the AGO report said.

According to the report, MOE said the process relied heavily on manual procedures due to the ministry’s operational context and high recruitment volume, creating “potential vulnerabilities to unauthorised human interventions”.

In a statement, MOE said it takes the matter very seriously, adding that the officer responsible has been dismissed from service.

The ministry said candidates undergo formal recruitment processes, including panel assessments, and that appointments must be approved by the appropriate authority before offers are made.

To address the lapses, MOE said it has introduced independent checks to verify that all appointments have received the required approvals. It is also working to automate its staff appointment processes to reduce manual work, as well as strengthen internal controls by end-2027.

“MOE remains committed to upholding public trust through strong governance and continuous improvement of our processes,” the ministry said.

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IT CONTROL WEAKNESSES

The AGO flagged weaknesses in IT controls at SkillsFuture Singapore (SSG), Workforce Singapore (WSG) and GIC, highlighting risks to system security, data integrity and oversight.

At SSG, gaps were found in the management of system and database accounts for its Training Grants System, including incomplete account reviews, weak password controls and delays in disabling access for former users. Some administrator activities were also not logged, limiting the ability to detect unauthorised actions.

The agency, which has since merged with WSG, is required to review all its operating system and database accounts.

“Without the reviews, SSG would not be able to identify and take prompt action against unauthorised, obsolete or unused accounts which could be exploited to gain access to and disrupt the operations of the training grants system,” said the auditor.

SSG said it has since completed the review of all the accounts and found no anomalies, said AGO.

At GIC, weaknesses were identified in audit logging, security configurations and patch management, including delays in applying security updates.

In addition, one password parameter was disabled for the root account in four servers, allowing unlimited login attempts to the account.

The agencies said they have since taken steps to address the issues, including tightening access controls, improving monitoring and strengthening system governance.

GOVERNMENT’S RESPONSE

The government takes the AGO’s observations seriously and has taken steps to address them, the Ministry of Finance (MOF) said in a separate press release on Wednesday.

“Where lapses are identified, agencies investigate the root causes thoroughly and take corrective actions promptly,” it said, adding that these include recovering any overpayment, enhancing processes, better leveraging technology and taking disciplinary actions where warranted.

“We will act decisively where there are indications of wrongdoing,” the ministry said, adding that cases have been referred to the police where there are grounds to do so.

“Any wrongdoing will be dealt with seriously and appropriate action will be taken against those involved,” it added.

Source: CNA/zl(gs)

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