Lack of transparency in transactions between related parties at government bodies like the People’s Association was flagged by the Auditor-General’s Office (AGO). Such transactions, involving substantial sums of money, were not carried out at arm’s length and were effectively hidden subsidies for related parties, as they were either charged below market rate or not charged at all, said Auditor-General Willie Tan in the AGO’s annual report.
At the PA, the Institute of Technical Education and Singapore Polytechnic, the AGO found inadequate management of conflicts of interest in related party transactions.