AGO flags EDB for serious lapses in contract and grant management

The Economic Development Board (EDB) has been flagged by the Auditor-General’s Office (AGO) for serious lapses in both contract procurement and grant administration, including reliance on unsupported tender pricing data and inadequate oversight of more than S$1.3 million disbursed under the Singapore Global Network Funding Programme (SGNFP).

AGO published its findings on 9 September 2025 as part of the Financial Year 2024/25 report, highlighting recurring issues in procurement integrity and grant governance across multiple agencies.

Contract awarded based on unsupported pricing data

AGO’s audit revealed that EDB had awarded a global media agency services contract using cost data submitted after the tender closing date.

The revised data included figures higher than the original bid price. EDB neither clarified the discrepancy nor reverted to the actual tendered price.

Instead, the higher figure was used in the evaluation report presented to the Tender Approving Authority (TAA).

AGO noted that if the true bid price had been used, the TAA could have approved a different contract value or even selected another vendor.

“The bid price submitted was not used in the evaluation and award recommendation. Had it been used, the contract price approved could have been different,” AGO stated in its report.

The audit did not disclose the contract’s exact value, but similar global media agency contracts typically involve multi-million-dollar budgets.

AGO emphasised that the absence of price verification and reliance on post-tender data violated public procurement standards and compromised transparency.

Over S$1.3 million in SGNFP grants disbursed without checks

AGO also uncovered multiple weaknesses in EDB’s administration of the Singapore Global Network Funding Programme (SGNFP).

The audit found that S$1.34 million in grants disbursed between 1 April 2022 and 31 March 2024 lacked adequate documentation to prove recipients’ eligibility.

AGO’s test of 15 claims revealed that none contained evidence confirming that grantees or event participants were Singapore citizens, permanent residents, or verified members of Singapore’s global network.

Additionally, no conflict-of-interest declarations were collected or verified — a key safeguard in public grant governance.

In one instance, a grantee reimbursed expenses to an affiliated individual, a potential conflict that went undetected because EDB had no declaration requirement at either the application or claims stage.

AGO also noted that the grant design allowed applicants to maximise funding payouts under the co-funding model, even when programme deliverables or impact did not scale accordingly.

“There was no requirement for applicants to declare conflicts of interest when submitting claims… there was also no evidence that EDB carried out COI or eligibility checks,” the report stated.

Systemic issues risk undermining public confidence

AGO assessed that EDB’s practices fell short of basic public accountability standards.

The combination of procurement irregularities and weak grant verification created systemic risks that could undermine confidence in public fund management.

While AGO did not identify any fraudulent intent or misuse, it warned that inadequate internal controls heighten the risk of future breaches.

Formal management letters outlining these lapses have been sent to EDB, which is expected to conduct internal reviews and report its findings to the Public Accounts Committee.

The committee may convene hearings to further scrutinise EDB’s financial governance and corrective actions.

Broader context: recurring audit concerns across agencies

AGO’s FY2024/25 report included 25 key audit observations, of which seven related to procurement and contract management and four to grant disbursement processes.

The Maritime and Port Authority (MPA) was cited for tender evaluation errors that altered scoring outcomes by S$2.43 million, while the Ministry of Education (MOE) was found to have over S$116,200 in unutilised withdrawals from the Post-Secondary Education Account scheme.

AGO said the recurring lapses across agencies demonstrate a need for tighter central guidance, stronger internal audit functions, and consistent enforcement of financial rules.

EDB’s response and next steps

EDB has acknowledged the findings and indicated that it is strengthening procurement documentation and grant monitoring procedures.

The agency is also reviewing its conflict-of-interest policies and developing clearer guidelines for evaluating post-tender submissions.

AGO stressed that sustained follow-up action and public accountability are crucial to ensure trust in Singapore’s financial governance.

“Robust procurement and grant oversight are essential to preserve confidence in the stewardship of public funds,” the report concluded.