OPINION: PAP's AIM bidding for PAP's Town Council contract - Conflict of Interest?

Diary of A Singaporean Mind, 25 Dec 2012
The response given below by Dr. Teo Ho Pin just doesn't make any sense. It does not give the rationale for doing such a deal.

• 1. One important missing information is cost of developing the software. Selling the software means that they have to incur the cost of redeveloping the software if the AIM decides to charge an exorbitant fee for the leaseback or if it decides to terminate the leaseback. This put their constituents on the hook
• 2. They sold the software for $140,000 and leased it back for $785 per town council per month. There are 14 town councils so the total paid to lease the software is $11K. AIM gets its money back after 13 months and starts to make a profit after that at the expense of constituents. This looks like a financially unfavorable deal that will cost the town councils more money in the long run.

The PAP Town Councils owe the people an explanation for what it has done. I'm surprise that a company fully owned by the PAP is allowed to even bid for the contract given the potential conflict of interest involved here. The explanation reported below is completely unsatisfactory for anyone who has any ability to think and reason....it insults the intelligence of Singaporeans.  Full story