ENSURING ACCOUNTABILITY
Mrs Teo said the findings of SMT’s internal review of circulation data from September 2020 to March 2022 have no bearing on public funds, as the Government did not have a funding relationship with SMT before the financial year of 2022.
She added that no funds have been disbursed yet.
Responding to questions from MPs about ensuring accountability of the use of public funding, Mrs Teo said conditions and safeguards are in place.
This includes applying Key Performance Indicators (KPIs) such as the total reach and engagement of SMT’s products and specific reach indicators for vernacular groups and youths to determine the amount of funding it receives.
SMT’s KPI performance and financial statements must also be audited by independent external auditors before submission to the Government, she said.
It is also required to provide progress updates to MCI on a half-yearly basis, with funding to be disbursed only if it provides satisfactory regular updates on where and how funding has been utilised, and future business plans.
Other questions raised by MPs include the duration and financial implications of the overstated circulation numbers, the manner, timing, and extent to which SMT discloses details of its review. Some had also asked if police investigations were ongoing.
In response, Mrs Teo said these questions should be addressed to SMT, noting that their concerns were valid.
“SMT has its own corporate governance and executive team. Their CEO is accountable to their Board, which is in turn accountable to the Members of the CLG,” she said.
“The Government cannot speak on behalf of SMT, and it is premature for us to say more at this juncture. This is especially as the board has tasked its audit and risk committee to conduct further investigations into the circulation discrepancy.”
She said the Government welcomes the board’s resolve to examine the findings of its internal review, and to put SMT on the right footing, adding that MCI expects SMT to share the findings of the audit and risk committee’s investigation.
“SMT’s Board and management must also be mindful of their public duties, their responsibility to maintain the public’s trust in their newsrooms and journalists, and the need to discharge these responsibilities in a diligent and timely manner.”
CNA has contacted SPH for its response.