International Business & Economy CPG Facilities Management rapped for lack of transparency about its top office...

CPG Facilities Management rapped for lack of transparency about its top office holders




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Blogger Phillip Ang has asked the Prime Minister’s Office who the people behind CPG Facilities Management Pte Ltd are. He said, “CPG Facilities Management Pte Ltd (CPGFM) receives hundreds of millions in tax dollars and (so) is obligated to disclose its board of directors and top management on its website.”

CPGFM is a subsidiary of the CPG Corporation (CPG) which is the corporatised entity of the former Singapore Public Works Department. The Public Works and Convicts was formed in 1833. The department was formally established as the Public Works Department of Singapore (PWD) in 1946 about a year after the Japanese occupation of the island ended.

Under Temasek Holdings, it was incorporated in 1999 before being renamed as CPG Corporation in 2002. A year later, it became part of the Downer EDI Group. In 2012, the ownership of the CPG Corporation group of companies was transferred from Downer EDI, Australia to China Architecture Design and Research Group (CAG).

The blogger pointed out that the CPGFM’s website does not list the top office holders in the company.

“CPGFM receives hundreds of millions in management fees annually, not peanuts by any measure. But who is running the company?”

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The following are the clients of CPGFM.
Phillip claimed that another company, EM Services, only disclosed its Board of Directors after his feedback to the PMO.

“This shouldn’t have been necessary in the first place,” he said.

And added: “Companies with business dealings with the government should be transparent. I hope the government will look into this without the need for more public feedback.”

The general manager and secretary of Ang Mo Kio Town Council who was put on forced leave in December last year after the Corrupt Practices Investigation Bureau (CPIB) commenced investigations on him for “the way he handles contracts and dealings in the town council” worked for CPG Facilities Management.

(Read also: Was letter on overpriced renovations under HIP trigger for CPIB investigations of AMKTC GM?)

The Online Citizen reported in 2011 that Mr Jeffrey Chua was the managing director of CPGFM. Mr Chua was also the Aljunied Town Council’s General Manager when it was under the 5-men PAP team anchored by former Foreign Minister, George Yeo. The Workers’ Party won this constituency at the 2011 General Election.

A writer pointed to the former Aljunied town council chairman, Cynthia Phua’s press release that Mr Chua was its managing director and asked the outgoing Aljunied town council team if there was any conflict of interest with Mr Chua being the General Manager of both CPGFM as well as the town council.

“I find it difficult to understand how Mr Chua can carry out both his duties as the general manager of the town council, and the Managing Director of the town council’s managing agent.
Suppose Mr Chua, the Managing Director of CPG Facilities Management asked for a higher management fee, in order to deal with the rise in the foreign workers’ levy, would Mr Chua the general manager of Aljunied Town Council grant that request?
If the town upkeep is poor, and HDB blocks are dirty, would Mr Chua the general manager of Aljunied Town Council replace himself as the managing agent?
It appears that there is a conflict of interest in Mr Chua’s roles. If he receives a stipend or salary from both organizations, on whose behalf would he act? If he only receives a salary from CPG Facilities Management, how can he then act in the interest of the residents of Aljunied GRC?
What I find extremely worrying, however, is that this matter only came to light because the Workers’ Party won Aljunied GRC, and there now needs to be a handover. If the PAP had won, would this unhealthy arrangement have continued? Are there any other such apparent conflicts of interest that we do not know about?”

A Google search shows that Mr Seng Joo How is the Managing Director of CPG Facilities Management.

A Seng Joo How is also the administrator of the Seng Clan Association Singapore’s blog. Among the list of 2014/2015 management committee is Mr Seng Han Thong, a former PAP MP of Yio Chu Kang constituency.

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