AIM stands to make more than $600K in current Government term

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 not true. 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 earlier replied that it had not been told further extensions were negotiable. She had said that the first extension till 31 Aug had to be “fought for”, through the help of an intermediary. She had said, “We were certainly not given to understand that there could be any extension after this.”

The second extension was, in fact, given to managing agent CPG Facilities, which worked for the previous PAP administration of Aljunied GRC. Its staff had sought the extension to audit some of its processes, Ms Lim had said.

Ms Lim also asked earlier why the 14 PAP town councils, which had developed the system, had transferred the ownership to AIM, a third party. In fact, it was revealed by Ms Lim that the system was sold to AIM in Jan 2011 and the TCs would then lease back from AIM which was registered as a $2 company (‘PAP TC’s computer & financial system sold to and leased back from a $2 company‘).

In response, AIM Chairman S Chandra Das said the company’s current 3 directors, all ex-PAP MPs, namely himself, Chew Heng Ching, and Lau Ping Sum do not receive directors’ fees or any other benefits.

Coordinating Chairman of 14 PAP TCs, Dr Teo Ho Pin, said the Town Councils Management System (TCMS) was developed by National Computer Services Pte Ltd, presumably paid for by the Town Councils, which collect conservancy fees from residents.

Dr Teo said its TCMS was sold to AIM through an open tender called in 2010, and their contract was in accordance with the Town Councils’ Financial Regulations. He said that although 5 companies collected the tender documents, only AIM submitted the sole bid.

AIM offered to buy the software for $140,000 and manage the system for a monthly fee of $785 per TC or $10,990 for the 14 PAP TCs:

1. Ang Mo Kio Town Council
2. Bishan-Toa Payoh Town Council
3. Chua Chu Kang Town Council
4. East Coast Town Council
5. Holland-Bukit Panjang Town Council
6. Jurong Town Council
7. Marine Parade Town Council
8. Moulmein-Kallang Town Council
9. Pasir Ris-Punggol Town Council
10. Potong Pasir Town Council
11. Sembawang-Nee Soon Town Council
12. Tampines Town Council
13. Tanjong Pagar Town Council
14. West Coast Town Council

Hence, in the current 5-year Govt term till 2016, AIM would stand to make $10,990 x 60 months = $659,400. It’s not bad for a $140,000 initial investment, giving a return of 371%!

And also, AIM’s cost seems to be minimal. It appears to be operating out from a virtual office (‘AIM operating out of a virtual business office‘). It’s not known if they have other offices or how many employees they have, since they are supposed to manage the TCMS system.

Dr Teo confirmed that AIM decided to end the contract with AHTC after the 2011 general election. He said that AIM only owns the rights to the software. All the computer hardware belong to the respective TCs and these remained with AHTC when its contract with AIM ended.

Dr Teo also said during the transition, AIM had promptly handed over all data and information to AHTC in accordance with the TC’s preferred format.