Police probe possible irregularities in PUB construction contract after AGO flags audit concerns

Singapore’s police are investigating possible irregularities in a construction contract managed by national water agency PUB, following findings from the Auditor-General’s Office (AGO). The AGO’s financial year 2024–2025 report, released on 9 September 2025, raised concerns over quotations for “star rate” items—components not listed in contracts but added at market rates.

AGO questions authenticity of quotations

AGO reported possible irregularities in 23 of 25 star rate items checked under a PUB construction contract for waterscape works. These items totalled S$148,900, representing 94 per cent of the total value of star rate items reviewed.

The audit questioned the authenticity of quotations submitted and whether PUB had obtained value for money. Following these findings, PUB lodged a police report to investigate potential fraudulent practices.

The contract was managed by a consultant engaged by PUB. The agency said it had procedures for evaluating star rates and supervisory checks in place but acknowledged that irregularities might not always be immediately evident, particularly in complex cases.

Lapses in desalination plant analyser maintenance

AGO also highlighted deficiencies in PUB’s contract management concerning water quality analysers at three private sector-operated desalination plants.

Under existing arrangements, private partners operate the plants and maintain analysers to monitor water quality. PUB installed its own analysers to cross-check readings before approving payments.

The audit found several shortcomings: PUB’s alert system for analyser readings was not functioning; contracts lacked scope to cover data and alert system troubleshooting; and delays occurred in rectifying data losses. Technical issues at two plants left PUB’s analysers with malfunctioning SMS alert systems and incomplete data transfer for over a year.

PUB became aware of the problems in mid-2023 and began corrective measures. The analysers were fully restored in late 2024 and linked directly to PUB’s internal systems from January 2025, enabling automated alerts and data transfers. PUB emphasised that water quality was not compromised, as its analysers served as secondary verification tools.

Biocide and chemical supply contracts under scrutiny

The AGO report also examined PUB’s management of biocide and chemical supply contracts. Biocides are used to control midges in reservoirs and waterways, while chemicals are used for water disinfection.

Key issues identified included payments made despite non-compliant certificates of analysis, insufficient stock monitoring, and reliance on external laboratory testing without independent verification.

Due to poor monitoring, purchase orders were delayed, forcing PUB to spend an additional S$300,000 to replenish depleted biocide supplies. The agency has since automated stock monitoring and implemented alert systems to trigger timely reorders.

PUB confirmed that independent testing verified the quality of chemicals and biocides received but acknowledged procedural lapses. It has since tightened certificate verification procedures.

Altered documents raise concern

AGO auditors also found discrepancies between softcopy and hardcopy certificates of analysis for biocide supplies. The softcopy versions showed altered formats, version numbers, and information, suggesting falsely that accredited laboratories had tested the active ingredients.

According to the AGO, these discrepancies raised doubts about document authenticity and compromised audit integrity. PUB later confirmed that one of its officers had instructed contractors to modify certificates, resulting in misleading documentation.

PUB stressed that it does not condone document alteration, noting that it had completed an internal investigation and taken disciplinary action against the officer involved.

PUB response and corrective measures

PUB stated that it accepted AGO’s findings and is committed to strengthening procurement oversight. The agency confirmed that disciplinary measures had been taken against responsible officers and that enhanced training and supervision would be introduced.

“PUB does not condone the alteration of documents furnished for audit and expects our officers to conduct themselves with integrity and professionalism,” it said.

It added that the agency would conduct training workshops, tighten consultant and contractor supervision, and reinforce standard operating procedures to prevent similar lapses.

AGO emphasised that false information provided during audits undermines accountability and weakens confidence in public governance. It reiterated that document authenticity and procedural compliance are critical to ensuring the transparent and responsible use of public funds.