AGO flags MPA over unlawful fee collections, concession grants, and tender lapses

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The Maritime and Port Authority of Singapore (MPA) was found to have committed multiple lapses in procurement practices, revenue collection, and payment processes, according to the Auditor-General’s Office (AGO) Report for Financial Year 2024/25 released on 9 September 2025.

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AGO’s findings covered issues including unlawful fee collection, concession grants not backed by legislation, tender evaluation errors that may have impacted contract awards, and a lack of proper verification before payments were made.

Unlawful collection of S$115.88 million in fees

The AGO report revealed that MPA, a statutory board under the Ministry of Transport, collected dumping and monitoring fees totalling S$115.88 million between 2020 and 2023.

However, these fees were not prescribed under existing laws, contravening requirements under Singapore’s legal framework for public revenue collection.

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In addition, port dues concessions totalling S$0.70 million granted between January 2021 and March 2024 were also found to lack a legal basis.

The AGO stressed that all public moneys must be collected in accordance with the law and any revenue waiver or concession must be similarly authorised.

MPA has since acknowledged the oversight and stated that it is reviewing its internal controls to ensure full compliance going forward.

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Tender scoring errors may have caused S$2.43 million in extra costs

AGO test-checked five tenders awarded by MPA from 1 January 2022 to 31 March 2024, with a combined procurement value of S$104.86 million (US$81.8 million).

Among these, a tender for vessel management services contained two critical errors in evaluation scoring.

MPA had used the Price-Quality Method (PQM), which assigns weightages to both price and quality.

However, one tenderer was erroneously awarded points for compliance with requirements based on certificates submitted by its subsidiary, not the entity itself.

This misstep potentially led to the tender being awarded to a party whose bid was S$2.43 million higher than another more competitive offer.

“If the points had not been awarded to the tenderer, another tenderer would have obtained the highest score,” the AGO stated in the report.

MPA has since revised its evaluation protocols to allow the consideration of group capabilities only if they are clearly declared within the tender documents.

Inadequate checks before authorising payments

AGO also identified lapses in six operational service contracts where MPA made payments without verifying whether services had indeed been delivered according to contract specifications.

These payments were made without checks such as service logs, proof of delivery, or formal verification reports.

MPA responded by reviewing and confirming service delivery for the six contracts using logs and supporting documentation.

The agency stated that it has since implemented stricter procedures to ensure that verification is conducted before future payments are approved.

Lack of robustness in procurement oversight

The AGO included MPA in its broader category of statutory boards found to have lapses in contract management and procurement, alongside other agencies such as the Economic Development Board and Public Utilities Board.

These lapses commonly included errors in tender evaluation and inadequate verification of deliverables before payment.

Despite the existence of procurement protocols, the AGO noted that such issues, if left unaddressed, could undermine the principles of transparency, fairness, and value for money in public sector procurement.

Legal compliance and accountability at stake

Beyond individual tender or contract errors, the AGO raised concerns about systemic governance practices at MPA.

Specifically, the collection of unauthorised fees and the granting of concessions without legal authority are in breach of the Financial Procedure Act.

The AGO, in the report, emphasised that all public sector entities are responsible for ensuring compliance with legal requirements in revenue and procurement matters.

It also noted that documentation supporting such decisions must be clear, complete, and legally sound to uphold public accountability.

MPA’s response and remediation efforts

MPA has committed to addressing the findings highlighted in the report. The agency said it is reviewing its internal policies and frameworks to ensure that all revenue collection, fee concessions, procurement evaluations, and payment authorisations are legally compliant and operationally robust.

It also affirmed that revised protocols will include clearer requirements on documentation and verification, as well as training for officers involved in procurement and finance operations.

The post AGO flags MPA over unlawful fee collections, concession grants, and tender lapses appeared first on The Online Citizen.



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