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Singapore Procurement News Notice - 18080


Procurement News Notice

PNN 18080
Work Detail A technical officer with national water agency PUB abused his position and duped it into awarding 718 contracts worth almost $2 million to companies registered under his wifes name. Mohamed Saad Mohamed Ali, 43, who has been suspended from his duties since August 2012, was sentenced to three years and nine months jail yesterday. The father of five pleaded guilty to 113 cheating charges and two counts of dealing with the benefits of his criminal behaviour. The court heard more than 600 other charges for similar offences were considered during sentencing. Deputy Public Prosecutor Chong Yonghui said Saad was in charge of troubleshooting and maintaining mechanical equipment at Choa Chu Kang Waterworks. He was also in charge of carrying out the procurement of items such as spare parts. To cheat PUB, he registered three sole proprietorships under his wifes name. They were Hy-Tech Project Services, Hydro Mech Enterprise and Dynatic Technix Project. He committed his offences between 2005 and 2012 by using the small value purchase (SVP) procurement process, the court heard. DPP Chong told District Judge Terence Tay that when a purchase is initiated under SVP, Saad was required to obtain three quotations from the market and put up a recommendation in a "quotation" form which supplier was to be awarded the contract. This was for Saad to recommend the cheapest supplier. FICTITIOUS QUOTATIONS Saad provided three separate quotations from his wifes companies to ensure the SVP contract would be awarded to one of them. In 2006, Saad started using fictitious quotations and cheated PUB into believing they were obtained from independent sources in the open market, when they were not. DPP Chong said Saad then used his ill-gotten gains to pay for items such as a car and repayments of a Housing Board mortgage loan. The DPP also said more than $460,000 had been seized from Saad and this amount will be restituted to PUB. According to an earlier report in The Straits Times, Saads offences came to light in 2012 when PUBs internal audit discovered anomalies in the small value purchases of mechanical equipment and general maintenance work at Choa Chu Kang Waterworks. PUB told The Straits Times yesterday that Saad is now liable for dismissal from service.PUB has since reduced the number of small value purchases by 96 per cent. A PUB spokesman said: "Procurement previously done through small value purchases has been combined into aggregated contracts which have to be awarded through open tender. The very small number of small value purchases that remains is now administered centrally by officers who have no involvement in operational duties. "In addition, potential suppliers are generated randomly by the computer system, and the segregation of duties rigorously enforced." Saad is now out on bail of $80,000 and will surrender himself at the State Courts on Dec 11 to begin serving his sentence.
Country Singapore , South Eastern Asia
Industry Legal
Entry Date 28 Nov 2018
Source https://www.tnp.sg/news/singapore/man-jailed-cheating-pub-718-contracts-worth-2-million

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