Besides National Cancer Centre, 11 other MOH projects have undeclared savings: Ong Ye Kung

Singapore - Health Minister Ong Ye Kung revealed on August 4 that, besides the National Cancer Centre Singapore (NCCS), 11 additional Ministry of Health (MOH) development projects failed to declare savings after major construction tenders concluded. This disclosure came in response to a parliamentary question raised by opposition member Louis Chua regarding the extent of unaccounted savings and their usage. According to the latest Auditor-General's Office (AGO) report released on July 15, the MOH did not disclose savings related to the NCCS building and conducted projects without prior approval from the Ministry of Finance (MOF). The audit identified shortcomings in contract management, financial governance, and consultancy service contracts handled by MOH Holdings (MOHH), the entity responsible for overseeing healthcare infrastructure projects. Ong responded to the inquiry by stating that six of the 11 projects had been completed with their accounts finalized, while five remained active. The identities of these projects were not disclosed. Of the completed ones, the initial projected savings were $165 million, yet the realized savings reached approximately $436 million, all of which was transferred back to MOF for reallocation. For the ongoing projects, the current estimated savings stand at about $48 million, compared to an initial total of $95 million. Ong explained that savings occur when the tender price is lower than the budget, offering an early indication of surplus funds. As projects progress, these savings might be utilized for unexpected purposes, which is typical in large-scale developments. These include adjustments due to post-pandemic material cost variations, operational enhancements, and compliance with new regulations. Savings can also increase if contingency funds remain unused. Ong emphasized the importance of verifying actual savings once projects conclude and ensuring proper handling of the funds. He noted that the NCCS ultimately generated $105 million in savings. However, he acknowledged that the final figures might vary until the projects are fully accounted for. The AGO audit further indicated that MOH allocated 11 tenders and a quotation totaling $26.31 million, out of a total of $30.83 million across 12 tenders, before securing in-principle approval for the NCCS project. It also uncovered instances of contractual mismanagement, including approving modifications after work had commenced and incorrectly calculating consultancy fees for additional services. In addressing the findings, MOH stated that the project was executed under pressure to swiftly enhance healthcare capacity amid a critical shortage of cancer treatment facilities. They pledged to improve internal systems and controls to ensure consistency moving forward. Ong highlighted that the savings from the NCCS were used to finance initiatives benefiting the public, such as a pedestrian link bridge connecting the center to the Outram Park MRT station, enhancing access for patients and staff, and laboratory developments focused on creating immunotherapies for cancer patients. He stressed that these actions were undertaken in good faith and not for improper redirection of funds.