NEA lost $680K selling scrap metal below market. CEO is ex-Admrial, surprised?

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An honorable member of the Coffee Shop Has Just Posted the Following:

Scrap metal price go up so much the last few years and the NEA continue to sell its steel scrap to the same contractor at the old price. And surprise surprise, CEO of NEA was a parachuted in Ex-Admiral Ronnie Tay. Another meritocracy appointment? I think not.

NATIONAL ENVIRONMENT AGENCY

The AGO found that the NEA did not call revenue tenders for the sale of scrap steel recovered from three of its incineration plants when their agreements expired between 2006 and 2012. Instead, the agency continued to sell the steel scrap to the contractor based on the original contract price, but "there was no evidence that NEA had properly assessed whether the original contract price was still reasonable and fair", the AGO said.

Based on the AGO's checks on market prices, the AGO estimated a potential loss of revenue of S$680,000.

The NEA has since called a tender for the sale of steel scrap, which was awarded on Feb 11. It has also set up a central repository of contracts to track and ensure new tenders are called before the prior ones expire.

The AGO also found gaps in NEA's handling of its rat control programme. NEA's contractors were required to treat burrows in areas under NEA's charge and not those under other public agencies. As such, some burrows in public areas were left untreated. Over time, the number of burrows in several locations increased.

The AGO's report said NEA's current rat control programme as currently structured could result in higher overall cost of treating rat problems. The report also observed that the NEA did not actively follow up with public agencies on actions taken to treat the active burrows detected.

NEA said it would strengthen co-ordination with other public agencies to tackle the rat problem.


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