COMPENSATION TO RESETTLEMENT CASES

1.29 pm

Mr S. Dhanabalan: Mr Speaker, Sir, between February and September 1987, I received a number of anonymous complaints alleging that squatters affected by public clearance schemes had cheated the HDB's Resettlement Department in their claims for resettlement compensation. I referred these complaints to the Corrupt Practices Investigation Bureau (CPIB) for investigation. The Bureau reported that it too was receiving complaints of the same nature.

CPIB investigations confirmed these allegations and revealed that cheating on resettlement compensation was widespread. So far, more than 600 squatters have admitted to over-claiming resettlement compensation. In many cases, the amounts over-claimed exceeded $10,000 each. 199 squatters have agreed to make full restitution amounting to more than $1 million.

The most common abuse is the planting of fruit trees after the cut-off date, solely in order to claim extra compensation. Often the fruit tree seedlings were planted so closely together that they could have served no other purpose than to cheat the Resettlement Department. Other squatters fraudulently claimed to be farmers to qualify for farmer resettlement benefits.

Squatters succeeded in this fraud because Resettlement Department was less than vigilant in detecting abuses and because some resettlement officers were corrupt. The Department continued to use outdated procedures and guidelines, and to rely on controls which were no longer effective. The CPIB has also found evidence of collusion between squatters and some resettlement officers to cheat the Department. One officer has been charged in court. Several others are still under investigation.

The CPIB and the Auditor-General's Office have recommended changes to rectify the weaknesses in the resettlement compensation system. My Ministry has accepted these recommendations, and is implementing them immediately. They include the following measures:

Firstly, new guidelines for classifying squatters as farmers and assessing the amount of compensation for fruit trees; and

Secondly, revised procedures for census-taking, compensation assessment and computation. For example, census officers will now photograph every item of improvement at the time of census taking, and will verify all claims against records held by other Government departments, such as the Land Office, Building Control Division, and Primary Production Department, before making payments.

MND has set up a task force together with CPIB to review every resettlement case since 1979. Where there is evidence of cheating or wrongdoing, prosecution will follow. So far, 43 squatters have been prosecuted. In 21 cases, charges were withdrawn after they had made full restitution. One case pleaded guilty and was sentenced to eight months' imprisonment.

Government policies on resettlement and compensation have been generous and fair. The Government pays adequate and equitable compensation to ease the disruption of those affected by resettlement. The amount depends on the type and value of property owned, and whether the squatters' livelihood is affected by clearance action. Compensation rates have beenreviewed every few years. During the last review in 1985, compensation rates were increased by 30% across the board.

Over the last five years, resettlement compensation payments have cost taxpayers more than $1.4 billion ($1,400 million). 64% of this vast sum of money was paid to resettled farmers. On average, each farmer received $122,000. The payment of such large compensation was necessary to clear land for development expeditiously. However, no one should abuse the resettlement compensation system, or collude with public officers to cheat the taxpayers. There must be absolute honesty on the part of both Government officers and the public. What is at stake is not just the money defrauded, but also the integrity of the system of government. The public must impose the same high standard of integrity on itself as it would on the Government. It cannot expect to cheat the State and get away with it. The Government will relentlessly pursue those who have been dishonest and bring the full rigour of the law to bear on them to recover the misappropriated public funds and bring the culprits to justice.