RENTAL CASH GRANT, RENTAL SUPPORT SCHEME
In addition to the JSS, IRAS managed two rental grant schemes, namely the RCG and RSS. The RCG was announced in May 2020 to mandate equitable co-sharing of rental obligations among the government, landlords and tenants.
The RSS was introduced a year later in May 2021, solely for commercial properties as they were more affected by tightened measures during the Phase 2 Heightened Alert period.
In the report, AGO noted that IRAS quickly developed a property tenant-occupier network model that leveraged its existing IT infrastructure and data to facilitate automatic grant disbursements. That enabled IRAS to process a large number of disbursements within a short period of time.
Multiple checks were also put in place to ensure the correct grant allotments and disbursements, including built-in controls in the system and independent checks by its internal audit – prior to grant disbursements – to identify discrepancies and duplicate allotments for follow-up.
But the AGO highlighted that there was no documentary evidence of approval on risk assessment for the RCG. Without such documentary evidence, there was inadequate assurance that the risk assessment and consideration of key factors were approved by MOF prior to the implementation of RCG.
The evaluation of rental grants could also be improved, the AGO report said. There were lapses in 55 allotments, including the wrong evaluation of grant eligibility, incorrect computation of grant amount and inadequate substantiation of the evaluation.
As a result, there were estimated excess and shortfall in grant disbursements totalling S$8.01 million and S$0.48 million respectively.
In a separate press release, MOF and IRAS said they have taken immediate rectification steps where relevant.
“On documentation, MOF and IRAS acknowledge that there is scope to improve the documentation of processes and risk assessments,” they said.
“While documentation may not have been complete due to fast-moving developments and time constraints then, MOF and IRAS affirm that each decision was duly deliberated and will ensure better documentation for future schemes.”
The authorities added that they have taken steps to investigate and recover the overpayments.
“MOF and IRAS acknowledge, as part of good governance, that there is scope for the internal processes highlighted in the AGO report to be further tightened and strengthened,” they said.
“We have since put in place additional policies and procedures to do so. These, coupled with the strong teamwork and can-do spirit that undergirded the design and delivery of COVID-19 schemes, will help us learn, improve and better prepare for future crisis situations.”