MINDEF COMMITTED TO S'PORE'S ZERO-TOLERANCE APPROACH TO CORRUPTION

"We have examined TI's (Transparency International's) assessment and found their assumptions to be flawed and processes weak," said Minister for Defence Dr Ng Eng Hen.

Stating that the Ministry of Defence (MINDEF) has strict procedures to ensure that its procurement systems adhere to the highest and most rigorous standard, Dr Ng gave this parliamentary reply on 17 Feb regarding a report by TI's Government Defence Anti-Corruption Index, which gave Singapore a poor rating.

Noting that Singapore and its various government ministries and agencies have achieved a reputation for zero tolerance against corruption for many years, Dr Ng cited defence experts such as defence journal Jane's Defence Weekly, which has acknowledged MINDEF's "robust and comprehensive system for procurement", and The Financial Times which noted the "stringency and transparency" of MINDEF s processes.

The Aviation Week publication had also lauded Singapore's defence ministry as a "reference customer" and a "model of cost-effectiveness" to suppliers and buyers of defence equipment.

"Among global defence companies, it is common knowledge that MINDEF buys equipment at very competitive prices and has stringent standards of performance for its purchases," said Dr Ng.

With MINDEF's "hard-earned and well-known reputation of being stringent, transparent, cost-effective in our procurement practices", placing Singapore in the same category as countries like Afghanistan and Iraq pointed to a "credibility gap of TI's reports", he added.

The TI report stated that while there was "no evidence of illicit economic activity," it added that "we may assume some off-budget allocations, perhaps on a limited basis".

The evaluator also claimed that he had "on good personal authority" that there was a phantom employee on MINDEF's payroll, but no further details were given.

Dr Ng said that these allegations would be taken very seriously and suggested that TI's processes needed to be strengthened by relying on more authoritative sources and substantiated facts as its analysis seemed to be based mainly on Internet sources.

The defence minister added that MINDEF had tried to reach out to TI to give them more information but the latter "flatly declined offers of more information to debunk their false assertions".

In a media interview, Chairman of the Public Accounts Committee (PAC) Cedric Foo pointed out that "the PAC has found administrative lapses in MINDEF and DSTA's (Defence Science & Technology Agency's) reports, but not the type which points to corruption".

The defence budget, which is presented and passed by Parliament and approved by the President each year, is subject to a rigorous system of internal and external audits. The PAC is appointed by Parliament to work closely with the Auditor-General's Office to conduct regular scrutiny of expenditure and accounts. Any lapses reported in the Auditor-General's findings will be looked into by the PAC, and the PAC's report is also made readily available publicly.

"I have not heard of TI reaching out to us in PAC to understand how the report is conducted better. And if there are whistle-blowing cases in the report, PAC will refer it to Corrupt Practices Investigations Branch without seeking anyone's consent," explained Mr Foo.

He added: "The PAC conducts budget and procurement processes from various ministries and statutory boards and if there are any questions in the report, we will reopen them. We will always stand ready to probe."

Established publications such as the Asian Intelligence Report by the Political & Economic Risk Consultancy Limited have consistently ranked Singapore as the least corrupt country in Asia since 2002. Singapore has also been ranked in the top fifth percentile out of over 200 countries in the area of Control of Corruption by other reputable publications such as the Governance Matters report published by the World Bank Institute, the official research arm of the World Bank.

In fact, TI's Headquarters' most recent Corruption Perception Index 2013 placed Singapore as the fifth least corrupt nation in the world.

"The fact that the same organisation, albeit through two different publications, gives us quite different assessments, again calls into question TI's credibility," said Dr Ng.

"We (at MINDEF) are committed to upholding Singapore's reputation as a country that is clean, honest and trustworthy, and a Ministry which emphasises the highest levels of integrity and incorruptibility."

Read here for the full parliamentary reply by Dr Ng: https://www.mindef.gov.sg/imindef/press_room/official_releases/ps/2014/17feb14_ps.html