SINGAPORE — The Ministry of National Development (MND) has asked the Aljunied-Hougang Town Council (AHTC) what remedial actions it plans to take after fresh findings from the court that Workers' Party chairperson Sylvia Lim and its former secretary-general Low Thia Khiang are liable for negligence to the town council that comes under the opposition party.
In response to TODAY's queries on Tuesday (Aug 22), MND said it has given AHTC two weeks to respond and if it fails to do so, the ministry will “check in with AHTC to understand the circumstances before deciding on the next steps”.
MND said in a statement on Tuesday that upon review of the Court of Appeal’s findings last month, it also decided to cancel a Rectification Order that it had issued to AHTC in January 2020.
MND said the court had found that Ms Lim, Mr Low and current party chief Pritam Singh, along with several other members, “did not act in good faith in the discharge of their duties”.
“This is a serious finding… They did not act in good faith in the payment processes of AHTC,” MND added in its statement. “The Court of Appeal also found them to be grossly negligent.”
MND noted that, for instance, the town council members who were implicated allowed AHTC’s managing agent FM Solutions & Services to pay monies to the agent itself and others, without proper controls.
“Monies could be paid, even if work was not done, or not properly done,” MND said.
The Court of Appeal also found that Ms Lim was liable for being negligent when AHTC awarded an electrical contract to Red-Power Electrical Engineering, with rates that were four to seven times higher than those offered by the then existing vendor, Digo Corporation and Terminal 9.
MND also noted that Ms Lim and Mr Singh remain as town councillors there today, and are also members in various committees within AHTC.
Ms Lim is a member of the audit committee and of the estate and community liaison committee.
Mr Singh chairs the public relations committee and is a member of the tenders and contracts committee, as well as the estate and community liaison committee.
“As such, they may continue to be involved in implementing or monitoring AHTC’s payment process, or both, as well as make procurement decisions,” MND said.
Therefore, given the Court of Appeal’s findings of Ms Lim and Mr Singh acting without good faith, and in gross negligence, the ministry said that it has written to the town council seeking information on several issues:
Ms Lim’s and Mr Singh’s specific powers and duties in relation to their involvement in AHTC’s payment and procurement processes
Actions that AHTC intends to take, if any, in relation to Ms Lim and Mr Singh, given the court findings that they acted without good faith, and in gross negligence
Other such actions that the town council intends to take
“Upon receiving AHTC’s response, the minister will consider whether further regulatory action under the Town Councils Act is required to safeguard public monies entrusted to the town council,” the ministry added.
TODAY has reached out to MND to ask if there is a deadline for AHTC to respond, and what will happen if it does not meet the deadline.
WHY THE RECTIFICATION ORDER IS CANCELLED
In 2020 when the Rectification Order was issued to the town council, AHTC had to take action to guard against a recurrence of irregularities in its financial affairs, specifically by restricting the powers of two of their town councillors, Ms Lim and Mr Low, with respect to certain financial decisions.
“The minister had issued the order under the Town Councils Act as AHTC did not require Ms Lim’s and Mr Low’s recusal from financial matters despite the High Court having found both of them to have breached their fiduciary duties to AHTC,” MND continued.
The order also stated that Ms Lim and Mr Low had filed an appeal against the judgement and indicated that the minister would review the order after the appeal had been heard and disposed of.
In the Court of Appeal’s judgements, which were released in November 2022 and July this year, it was found that Ms Lim and Mr Low were liable for negligence, but that Mr Singh was not.
The judgements also found that Ms Lim, Mr Singh and Mr Low did not owe fiduciary or equitable duties to AHTC. This refers to legal obligations.
This ran contrary to the initial basis of the order, which was the High Court’s initial finding that both Ms Lim and Mr Low had breached their fiduciary duties to the town council.
“The minister has considered the Court of Appeal’s findings that Ms Lim and Mr Low do not owe fiduciary duties to AHTC, and upon review, decided to cancel the order,” MND added.
TODAY has reached out to AHTC for comment.
https://www.todayonline.com/singapore/mnd-actions-ahtc-court-workers-party-wp-negligence-2237966
In response to TODAY's queries on Tuesday (Aug 22), MND said it has given AHTC two weeks to respond and if it fails to do so, the ministry will “check in with AHTC to understand the circumstances before deciding on the next steps”.
MND said in a statement on Tuesday that upon review of the Court of Appeal’s findings last month, it also decided to cancel a Rectification Order that it had issued to AHTC in January 2020.
MND said the court had found that Ms Lim, Mr Low and current party chief Pritam Singh, along with several other members, “did not act in good faith in the discharge of their duties”.
“This is a serious finding… They did not act in good faith in the payment processes of AHTC,” MND added in its statement. “The Court of Appeal also found them to be grossly negligent.”
MND noted that, for instance, the town council members who were implicated allowed AHTC’s managing agent FM Solutions & Services to pay monies to the agent itself and others, without proper controls.
“Monies could be paid, even if work was not done, or not properly done,” MND said.
The Court of Appeal also found that Ms Lim was liable for being negligent when AHTC awarded an electrical contract to Red-Power Electrical Engineering, with rates that were four to seven times higher than those offered by the then existing vendor, Digo Corporation and Terminal 9.
MND also noted that Ms Lim and Mr Singh remain as town councillors there today, and are also members in various committees within AHTC.
Ms Lim is a member of the audit committee and of the estate and community liaison committee.
Mr Singh chairs the public relations committee and is a member of the tenders and contracts committee, as well as the estate and community liaison committee.
“As such, they may continue to be involved in implementing or monitoring AHTC’s payment process, or both, as well as make procurement decisions,” MND said.
Therefore, given the Court of Appeal’s findings of Ms Lim and Mr Singh acting without good faith, and in gross negligence, the ministry said that it has written to the town council seeking information on several issues:
Ms Lim’s and Mr Singh’s specific powers and duties in relation to their involvement in AHTC’s payment and procurement processes
Actions that AHTC intends to take, if any, in relation to Ms Lim and Mr Singh, given the court findings that they acted without good faith, and in gross negligence
Other such actions that the town council intends to take
“Upon receiving AHTC’s response, the minister will consider whether further regulatory action under the Town Councils Act is required to safeguard public monies entrusted to the town council,” the ministry added.
TODAY has reached out to MND to ask if there is a deadline for AHTC to respond, and what will happen if it does not meet the deadline.
WHY THE RECTIFICATION ORDER IS CANCELLED
In 2020 when the Rectification Order was issued to the town council, AHTC had to take action to guard against a recurrence of irregularities in its financial affairs, specifically by restricting the powers of two of their town councillors, Ms Lim and Mr Low, with respect to certain financial decisions.
“The minister had issued the order under the Town Councils Act as AHTC did not require Ms Lim’s and Mr Low’s recusal from financial matters despite the High Court having found both of them to have breached their fiduciary duties to AHTC,” MND continued.
The order also stated that Ms Lim and Mr Low had filed an appeal against the judgement and indicated that the minister would review the order after the appeal had been heard and disposed of.
In the Court of Appeal’s judgements, which were released in November 2022 and July this year, it was found that Ms Lim and Mr Low were liable for negligence, but that Mr Singh was not.
The judgements also found that Ms Lim, Mr Singh and Mr Low did not owe fiduciary or equitable duties to AHTC. This refers to legal obligations.
This ran contrary to the initial basis of the order, which was the High Court’s initial finding that both Ms Lim and Mr Low had breached their fiduciary duties to the town council.
“The minister has considered the Court of Appeal’s findings that Ms Lim and Mr Low do not owe fiduciary duties to AHTC, and upon review, decided to cancel the order,” MND added.
TODAY has reached out to AHTC for comment.
https://www.todayonline.com/singapore/mnd-actions-ahtc-court-workers-party-wp-negligence-2237966
