According to Health Minister Ong Ye Kung, 11 Ministry of Health development projects alongside the National Cancer Centre Singapore failed to declare savings after major construction tenders closed. Speaking in an Aug. 4 written parliamentary reply to Workers’ Party Member of Parliament Louis Chua, Ong stated that these projects involved both completed and ongoing infrastructure developments managed by MOH Holdings.
Undeclared Savings Across Completed and Ongoing Projects
The audit trail reveals varying financial states across the 11 unnamed infrastructure initiatives. According to Ong, six of these projects reached completion with their accounts officially closed, while five remain active. Initially, the six finished projects yielded $165 million in estimated savings after awarding tenders. Once completed, those realised savings expanded to approximately $436 million, all of which was returned to the Ministry of Finance for reallocation.
For the five ongoing projects, current estimated savings sit at roughly $48 million. That figure represents a drop from the initial total of $95 million recorded after tender awards, reflecting necessary in-project uses over time. Tenders typically come in below budget during the award stage, creating early estimates of excess funds, according to Ong. As development progresses, ministries frequently deploy those funds to address unforeseen adjustments like post-COVID-19 material price fluctuations or regulatory compliance updates.
Did you know? Savings can fluctuate during construction because unused contingency funds might increase the total, while operational improvements or material price shifts can draw those funds down before accounts finalize.
Audit Findings and Ministry of Finance Approval Lapses
The disclosures follow an Auditor-General’s Office report published on July 15. That report flagged that the ministry did not declare savings for the National Cancer Centre Singapore building and proceeded with projects without prior approval from the Ministry of Finance. The audit also highlighted contract management lapses and financial governance issues overseen by MOH Holdings.
Regarding the National Cancer Centre Singapore specifically, the ministry used undeclared construction savings to fund three items worth $11.95 million without prior Ministry of Finance approval. According to Ong, those funds were tapped in good faith for public benefit, such as a pedestrian link bridge connecting the centre to Outram Park MRT station and laboratories producing cancer immunotherapies. The Auditor-General’s Office also identified that the ministry awarded 11 tenders and a quotation totalling $26.31 million before obtaining in-principle approval to launch the project.
Frequently Asked Questions
How much money was returned to the Ministry of Finance from completed projects?
According to Health Minister Ong Ye Kung, the six completed projects yielded around $436 million in realised savings, which was freed up and returned to the Ministry of Finance.
Why did the Ministry of Health use undeclared savings without prior approval?
Ong stated that the funds were tapped in good faith for works that benefited the public, such as a pedestrian link bridge and cancer immunotherapy laboratories, during a period of urgent healthcare capacity expansion.
What did the Auditor-General’s Office report uncover regarding tender approvals?
The audit found that the ministry awarded 11 tenders and a quotation totalling $26.31 million before securing in-principle approval to start the National Cancer Centre Singapore project.
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