The Auditor-General’s Office (AGO) for the Financial Year 2013/2014 highlighted some of the Ministry of Defence (MINDEF)’s lapses in its management of government land and assets, according to media reports.
In particular, this pertains to in leasing agreement with Sembawang Country Club (SCC), and renting out a large commercial property for below market value.
In 1994, when MINDEF licensed a parcel of land to Sembawang Country Club (SCC) as a golf course, the agreement failed to stipulate an end date. Based on State Land Rules, the duration should not surpass three years.
The country club also subleased a 6,842 sq m wooded land within the golf course which was not covered by the original agreement between SCC and MINDEF. The country club also agreed to maintain the wooded area even though it was not part of the licence. However, the place became littered with garbage, heavy machinery and discarded vehicles. It has since been cleaned up.
The map shows SCC sits on the borders of the Sembawang Air Base.
Separately, MINDEF leased 109 hectare of land from the Public Utilities Board (PUB) in 1971 for $68 per year. However, more land was used by the ministry, and there were changes to how it was being used, which were not stated in the agreement.
In 1995, MINDEF also sublet a portion of that property for only $45 per year to a contractor that renders services to the ministry. The contractor was privatised in 2000, and uses the land for commercial purposes, in addition to the said services.
In response, MINDEF informed the AGO that it has since leased a larger 127 hectare area from PUB at a revised annual rent of $5.43 million. As for the contractor’s low rent, it was raised from $45 to $830,000 annually.
Muneerah Bee, Senior Journalist at PropertyGuru, edited this story. To contact her about this or other stories email muneerah@propertyguru.com.sg
Related Stories:
MND may reward parents for moving to non-mature towns
URA spruces up park in Kampong Glam
Urban planning with 3D technology