FMSS' Earnings: Shocking!

While AHPETC suffered an operating deficit of S$2 million, FMSS made a net after-tax profit of S$2 million, after paying its directors and shareholders fees and salaries amounting to S$1.14 million.

AHPETC’s deputy general manager, who was also a shareholder and director of FMSS, certified invoices received from FMSS totalling S$2.1 million on behalf of the town council, and subsequently also approved the related payment vouchers by the TC to FMSS, with no segregation of duties.

For FY2012/2013

FMSS made a profit after tax of S$510,904. This was after FMSS paid its three owners/directors, fees and salaries of S$702,295, and consultancy and secretarial fees of S$300,000 .

Total payments to the three FMSS Owners/Directors for FY2012/2013 amounted to S$1,513,199.

 

For FY2013/2014

FMSS made a profit after tax of S$2,035,784. This was after FMSS paid its four owners/directors fees and salaries of S$839,696, and consultancy and secretarial fees of S$300,000 .

Total payments to the four FMSS owners/directors for FY2013/2014 amounted to S$3,175,480.

Between FY2012/2013 and FY2013/2014

While FMSS’ revenue increased by 30 per cent in one year, from S$6,740,572 to S$8,773,429, its profit after tax rose 300 per cent, from S$510,904 to S$2,035,784.
Total payments by AHPETC to FMSS owners and directors amounted to 22 per cent of FMSS’ revenue in FY12/13. It grew further to 36 per cent in FY2013/2014. "Such levels of profit margin are abnormal," said MND. "As AHPETC was FMSS’ only client, these findings support MND’s earlier concern that the TC had overpaid FMSS excessively."