Protection of Public Monies Disbursed through Arts and Heritage Grants where Recipient Organisations Subsequently Encounter Financial Difficulties

Mr Alex Yam asked the Minister for Culture, Community and Youth (a) what safeguards are in place to protect public monies disbursed through arts and heritage grants and matching funds where recipient organisations subsequently encounter financial difficulties; and (b) whether recent cases have prompted a review of financial monitoring, governance requirements and recovery mechanisms.

The Ministry of Culture, Community and Youth, the National Arts Council (NAC) and the National Heritage Board (NHB) have put in place safeguards throughout the funding process. Before funding is awarded, NHB and NAC assess applicants' track records, governance and organisational capacity. Disbursements are subject to stipulated conditions and deliverables.

Agencies engage grant recipients throughout the funding period to monitor their progress and identify issues early. Where concerns arise, NAC and NHB may withhold further disbursements. In the unlikely event that a recipient is unable to fulfil their obligations, NAC and NHB may act as provisioned under funding agreements. This includes terminating the grant and seeking recovery of monies through legal action where necessary. Agencies will pursue all reasonable avenues to recover the public funds.

NAC and NHB regularly review grant administration, monitoring and recovery processes, which are subject to internal audits.