Government Continues Efforts to Rectify Errors and Provide Pandemic Assistance
The Singapore Government has successfully recovered more than 99% of the S$370 million in wage support grants that were incorrectly disbursed to companies under the Jobs Support Scheme (JSS), according to Second Minister for Finance Indranee Rajah. These errors, which affected approximately 5,400 businesses in October 2020, were due to miscalculations in the disbursement process, stemming from mistakes in compiling business reopening dates after the COVID-19 circuit breaker period.
Minister Rajah explained during the Ministry of Finance’s Committee of Supply debate that, while the Government aimed to quickly implement support schemes to address the pandemic’s impact, a balance was struck between simplicity and the necessary controls to prevent misuse or errors. To mitigate fraud risks, the Inland Revenue Authority of Singapore (IRAS) required firms to authenticate their CPF contributions before releasing payments, and firms suspected of attempting fraud were denied payouts. As of last week, 14 cases had been referred to the police for further investigation.
The Government’s recovery efforts have been largely successful, with over 99% of the erroneously paid funds reclaimed. The remaining balance is still being pursued. Despite the challenges, Minister Rajah acknowledged the complexity of the disbursement process and the Government’s swift action to correct the mistakes once they were identified.
In addition to its financial recovery efforts, the Government continues to provide support to businesses affected by the pandemic, adjusting measures as circumstances evolve. Minister Rajah also highlighted the Government’s commitment to being a responsible and sustainable buyer, with plans to require eligible suppliers to be accredited with the Progressive Wage Mark by March 2023, expanding this requirement to various sectors, including retail and food services.
Moreover, the Government has incorporated sustainability measures in its procurement processes, mandating that new government buildings meet Green Mark standards under the GreenGov.SG initiative and considering sustainability in the evaluation of tenders. Additionally, businesses are supported through green initiatives like the Enterprise Sustainability Programme and the Economic Development Board’s Resource Efficiency Grant for Energy.
