AIM vs AHTC: Computer firm says town council's claim "inaccurate"

By Tan Qiuyi, Channel NewsAsia, 24 Dec 2012

A disagreement between Aljunied-Hougang Town Council (AHTC) and a company that used to provide its computer and financial systems continues.

In a letter to the media, Action Information Management Pte Ltd (AIM) said AHTC Chairman Sylvia Lim's allegation that a service extension with AIM had to be "fought for" was inaccurate.

AIM said two service extensions were granted - in August and September 2011 - before the contract lapsed.

AIM also said it would have agreed to a further extension if the AHTC had asked for it.

As AHTC did not do so, the contract was allowed to lapse.

Ms Lim had said they did not believe any further extension was forthcoming.

AIM Chairman S Chandra Das said the company's current directors, three former People's Action Party (PAP) MPs, namely himself, Chew Heng Ching, and Lau Ping Sum do not receive directors' fees or any other benefits.

In a separate letter, PAP Town Councils said its Town Councils Management System (TCMS) was sold to AIM through an open tender, and their contract was in accordance with the Town Councils' Financial Regulations.

Ms Lim had earlier asked why PAP Town Councils (TCs) had transferred ownership of its computer software to a third party, and questioned the AIM's contract with the PAP TCs.

Coordinating Chairman of 14 PAP TCs Dr Teo Ho Pin said the TCMS owned and used by them was developed by National Computer Services Pte Ltd.

In 2010, PAP TCs called an open tender to sell the ownership of the developed application software.

Dr Teo said although five companies collected the tender agreement, the sole bid was submitted by AIM, a company fully owned by the PAP.

AIM offered to buy the software for S$140,000 and manage the system for a monthly fee of S$785 per TC, for an initial term ending 31 October 2011.

Dr Teo said after the 2011 general election, AIM decided to end the contract with AHTC.

AIM only owns the rights to the software, so all computer hardware belong to the respective TCs and these remained with AHTC when its contract with AIM ended.

Dr Teo also said the handover by AIM to AHTC took place from 27 May to 9 September, and during the transition, AIM had promptly handed over all data and information to AHTC in accordance with the TC's preferred format.

WP town council 'wanted to develop own system'
PAP-owned IT firm says it readily granted 2 requests to extend services
By Goh Chin Lian, The Straits Times, 25 Dec 2012

A COMPANY providing IT services to town councils has refuted a claim by Aljunied-Hougang Town Council (AHTC) that it had to fight to continue using the firm's computerised management system.

Yesterday, Action Information Management (Aim) said that the AHTC had wanted to develop its own system after the Workers' Party (WP) took over the town council last year, and that Aim readily gave it the two extensions it sought.

AHTC even thanked Aim for the extensions, the firm's chairman S. Chandra Das said. He added that WP chairman Sylvia Lim's allegation that the extension had to be "fought for" was inaccurate.

The former People's Action Party (PAP) MP was responding to Ms Lim's criticism of Aim for terminating its IT services after the opposition party won Aljunied GRC in the general election.

She also questioned Aim's contract with town councils allowing it to terminate its services in the event of a material change in the composition of a town council.

Aim has been managing the town council management system (TCMS) for PAP councils after it obtained a 2010 open tender for the contract.

The controversy arose earlier this month when a government management review gave AHTC the lowest banding for arrears management and did not rate its corporate governance as its auditor's management letter had not been submitted in time.

Ms Lim blamed the poor showing on the need to replicate a new computer and financial system after Aim, which is fully owned by the PAP, terminated its services.

Yesterday, however, Mr Chandra Das said that "false and misleading claims and statements about Aim" had been published in the press and social media.

He explained how the company had taken over the IT contract, and gave details on the termination for AHTC last year.

"Prior to the termination, Aljunied-Hougang TC had informed Aim in June 2011 that it was developing a new TCMS to serve its residents effectively and requested for an extension of the use of the Aim TCMS on two occasions," he said.

In response to queries by The Straits Times, Aim also said the town council wrote to it on June 10 to say it was developing a new computer system, thanked Aim for its service, and asked for the termination to be done on Aug 31.

Aim replied on June 22 to say that according to the contract, termination would take place on Aug 1, but two days later, offered the first extension to Aug 31. On June 29, the town council asked for a further extension to Sept 9, which Aim allowed.

Mr Chandra Das said: "On both occasions, Aim willingly agreed to the request." He said Aim would also have agreed to a further extension if the town council had asked for it. As it did not, the contract was allowed to lapse.

"It is noted that the town council had expressed its appreciation to Aim for the assistance rendered in the related matters," he added.

"Accordingly, Ms Sylvia Lim's allegation that the first extension had to be 'fought for' is inaccurate. We note that she did not provide any details or basis to support the allegation."

Contract follows regulations, say PAP town councils
By Tessa Wong, Singapolitics, 24 Dec 2012

The coordinating chairman for the 14 PAP town councils, Mr Teo Ho Pin, has responded to online chatter about a contract between the town councils and a PAP-owned company over the sale and leaseback of computer systems.

Netizens had asked for details on how the deal was done and questioned if there was a breach of trust.

Mr Teo said on Monday that the contract between the town councils and Action Information Management (Aim) had followed existing financial regulations.

The councils, he said, decided to call an open tender in 2010 to sell the system's ownership, in order to price its value and "facilitate the options for future development", said Mr Teo. An advertisement was placed in The Straits Times on June 30 that year.

Although five companies collected the tender documents, the only bidder was the PAP-owned Aim, said Mr Teo.

Aim offered to buy the software for $140,000 and manage the system at a monthly fee of $785 per town council, for an initial term ending on Oct 31, 2011. It won the tender.

Mr Teo added that while Aim owns the rights to the software, all computer hardware including servers and receipting machines belong to the town councils.

On the termination of Aim's contract with Aljunied-Hougang Town Council (AHTC), Mr Teo said Aim had "promptly handed over all data and information to AHTC in accordance with the latter's preferred format" before the system was terminated on Sept 9 last year.

Separately, Aim chairman Chandra Das, a former PAP MP, also issued a statement saying that in participating in the tender for the PAP town council software contract, Aim "complied fully with all relevant laws and procedures".

The statement also goes on to respond to claims it says were "false and misleading".

He said that the company was formed 20 years ago to provide IT-related services. Mr Chandra Das added that the current directors - himself, Mr Chew Heng Ching, and Lau Ping Sum - "do not receive directors' fees or any other benefits". All three are former PAP MPs.

AIM refutes Aljunied-Hougang Town Council's claims
By Tessa Wong, Singapolitics, 24 Dec 2012

Action Information Management chairman Chandra Das has refuted Aljunied-Hougang Town Council's (AHTC) claims that it had to fight for a service extension to continue using the existing town council management system.

In a statement issued on Christmas Eve, Mr Chandra Das, a former PAP MP said that the Workers' Party intended to develop its own management system after it took over the town council and that Aim readily gave it the two extensions it sought.

He added that Aim would have willingly granted further extensions if the AHTC had asked for it.

"It is noted that the TC had expressed appreciation to Aim for the assistance rendered in related matters," he said.

The statement is the latest instalment of a disagreement that started last week between Aim and AHTC.

AHTC chairman Sylvia Lim said the town council performed badly in some areas of the recent town council management review because Aim terminated its lease of computer systems last year, following WP's takeover of Aljunied town council after the general election.

She questioned why the PAP town councils had sold the system to Aim in January last year in a leaseback scheme, with a clause that allowed for Aim to terminate the software lease with a month's notice should there be a "material change" to the town council's membership.

Aim subsequently said that it granted two extensions to AHTC. Ms Lim then said that the first extension had to be "fought for", while the second was given only to staff from the PAP's former managing agent for the town council.

On Monday, Mr Chandra Das contended that Ms Lim's allegation that it was "fought for" was inaccurate. "We note that she did not provide any details or basis to support the allegation," he said.

He added that AHTC informed Aim in June 2011 that the town council wanted to develop its own town council management system and requested extensions on two occasions - the first until Aug 31, 2011 and the second until Sep 9, 2011.

Aljunied-Hougang town council could have asked for service extension: IT firm
Channel NewsAsia, 17 Dec 2012

The company which provided the computer and financial systems to Aljunied-Hougang town council, has spoken up on its termination of services for the council.

Last Friday, the Aljunied-Hougang town council said the termination was one reason its corporate governance audit was delayed.

In a letter to the media, Action Information Management Pte Ltd (AIM) said it had extended its services to the town council twice, in August and September last year.

AIM's chairman S Chandra Das said the company would have agreed to a further extension, if the town council had requested for it.

When contacted, council chairman Sylvia Lim said they understood that no further extensions would be forthcoming at the time.

She also questioned why AIM terminated its services in the first place.

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