RESETTLEMENT COMPENSATION

Mr S. Dhanabalan: Mr Speaker, Sir, on 29th May 1989, I informed the House that I had received complaints alleging cheating in claims for resettlement compensation by squatters on State lands. CPIB investigations confirmed these allegations. The most common cases of cheating involved the planting of fruit trees after the resettlement eligibility cut-off date, so as to claim extra compensation and other resettlement benefits.

I informed Parliament then that a Resettlement Task Force comprising representatives from the Attorney-General's Chambers, CPIB, HDB and my Ministry had been set up to review every resettlement case handled since 1979. I would like to inform Members of the progress made by the Task Force since it began its investigations in December 1989.

The Resettlement Task Force screened more than 100,000 resettlement cases and identified 380 cases where there was strong prima facie evidence of cheating involving planting of fruit trees after the cut-off date. The CPIB's investigations of these cases confirmed the Task Force's findings.

Of the 380 cases investigated, 332 or 87% admitted to having planted trees after the cut-off date. More than 90% of these cases have made restitution. The total amount of overpayment was $2 million. As at 31st January 1992, $1.6 million had been recovered from the ex-squatters involved. Recovery of the remaining $400,000 is in hand.

I am satisfied that the Resettlement Task Force has identified and thoroughly investigated all the serious cases of possible cheating on resettlement compensation. The exercise has demonstrated clearly that those who conspire to cheat the Government will be discovered sooner or later and will have to face the full consequences of their wrongdoing. The culprits will be brought to justice and monies wrongfully claimed will be recovered.

Since the problem came to light in 1987, the HDB's Resettlement Department has tightened administrative procedures to prevent further malpractices. HDB has also implemented changes recommended by CPIB and the Auditor-General's Office to rectify weaknesses in the resettlement compensation system. These changes include new guidelines for classifying squatters as farmers, and revised procedures for census-taking, compensation assessment and computation.

Since all serious cases of cheating by ex-squatters have been thoroughly investigated and comprehensive safeguards against a recurrence of the problem are in place, the Government is closing investigations into resettlement compensation wrongly claimed by ex-squatters.

It should be abundantly clear to all that it does not pay to try to cheat the Singapore Government.

Mr Heng Chiang Meng (Cheng San GRC): Sir, may I ask the Minister whether the 332 cases he mentioned include those cases from the Yio Chu Kang/Jalan Kayu area and, if not, may I ask the Minister how many cases were there from the Yio Chu Kang/Jalan Kayu area, and how much money was recovered? At the same time, may I also ask on those cases that have been closed, whether all the files have been returned to the Resettlement Department by the CPIB, and payments due to the resettled farmers have been paid, and no excuses will be made on the basis of the files being kept by CPIB. Also, no accounts are being frozen for the purpose of investigation by the CPIB.

Mr Dhanabalan: Mr Speaker, Sir, the figure I mentioned in my statement just now does not include those from Yio Chu Kang which were already covered in the investigations before the Task Force was set up. In the case of Yio Chu Kang, more than 600 cases were investigated and those who cheated were dealt with, and more than $5.5 million was recovered from these cases.

The closing of the files will apply to all, including the Yio Chu Kang cases. I have been informed by the Resettlement Department that all the cases where payments have been frozen because of the investigations have since been paid and, in fact, payments were completed by February this year.