# Media Reply by the Ministry of National Development on Court of Appeal’s Judgement in the lawsuit brought about by Sengkang Town Council (SKTC) and Aljunied-Hougang Town Council (AHTC) on AHTC’s Town Councillors - **Source:** Ministry of National Development - **Published:** 2023-07-07T09:00:00.000Z - **Author:** Ministry of National Development - **Original:** https://www.mnd.gov.sg/newsroom/press-releases/view/media-reply-by-the-ministry-of-national-development-on-court-of-appeal-s-judgement-in-the-lawsuit-brought-about-by-sengkang-town-council-(sktc)-and-aljunied-hougang-town-council-(ahtc)-on-ahtc-s-town-councillors - **Topics:** Investment & Capital Markets ## Featured rationale The findings highlight the importance of payment controls in estate management and may prompt closer scrutiny of how town councils procure and fund residential services. ## AI summary The Court of Appeal found gross negligence involving $23 million of AHTC payments to FMSS, while conflicted persons or FMSS employees co-signed $33.7 million paid to FMSS and FMSI. ## Original article Media Reply by the Ministry of National Development on Court of Appeal’s Judgement in the lawsuit brought about by Sengkang Town Council (SKTC) and Aljunied-Hougang Town Council (AHTC) on AHTC’s Town Councillors 1 MND notes with concern the Court of Appeal’s judgement in the lawsuit brought by SKTC and AHTC. The Court of Appeal has found that AHTC’s Town Councillors (including Ms Sylvia Lim, Mr Low Thia Khiang and Mr Pritam Singh) and two former AHTC employees were grossly negligent in implementing AHTC’s payment process. The involvement of conflicted persons and the absence of safeguards created an inherent risk of overpayment. 2 The Court of Appeal found that the Town Councillors and two former AHTC employees had been grossly negligent when making $23 million worth of payments to FMSS, out of public funds. The Court of Appeal also found that all the payments to FMSS and FMSI, totalling $33.7 million, were “co-signed by Conflicted Persons or FMSS employees”. 3 In addition, Ms Lim was found to have not acted in good faith when she awarded the contracts to Red-Power Electrical Engineering Pte Ltd at rates that were four to seven times higher than those offered by incumbent vendors, Digo Corporation Pte Ltd and Terminal 9 Pte Ltd for the same services. 4 MND will continue to monitor the proceedings brought by SKTC and AHTC against the Town Councillors, including the assessment of damages by the High Court, as public funds are involved. Ministry of National Development 7 July 2023 Annex: Summary of findings · The Court of Appeal conclusively determined that AHTC’s Town Councillors (Ms Sylvia Lim, Mr Low Thia Kiang, Mr Pritam Singh, Mr Chua Zhi Hon, Mr Kenneth Foo) and two former AHTC employees (Ms How Weng Fan and Mr Danny Loh) were ”grossly negligent“ in implementing AHTC’s payment process, which led to the persistence of “control failures” in the payment process. · The Town Councillors had appointed Ms How and Mr Loh, who were long-time supporters of the Workers’ Party, as the General Manager and Secretary of AHTC respectively. This is despite Ms How and Mr Loh being major shareholders in FM Solutions & Services Pte Ltd (FMSS) and FM Solutions & Integrated Services Pte Ltd (FMSI), which served as the Managing Agent and Essential Maintenance Services Unit (EMSU) contractor to AHTC. · Between 2011 and 2015, Ms How issued payment claims to AHTC on behalf of FMSS, and subsequently approved the payments to FMSS on behalf of AHTC. Mr Loh also issued payment claims to AHTC on behalf of FMSI, while Ms How approved the payments to FMSI on behalf of AHTC. This involvement of conflicted persons and “the absence of safeguards” created an inherent risk of overpayment. · In addition, Ms Lim was found to have not acted in good faith when she awarded the contracts to Red-Power Electrical Engineering Pte Ltd at rates that were four to seven times higher, instead of renewing contracts with incumbent vendors, Digo Corporation Pte Ltd and Terminal 9 Pte Ltd, which offered the same services at significantly cheaper rates. ## Chinese translation > Translation model: grok_cli ### 国家发展部就盛港市镇理事会（SKTC）与阿裕尼–后港市镇理事会（AHTC）针对AHTC市镇理事所提诉讼中上诉庭判决的媒体答复 国家发展部就盛港市镇理事会（SKTC）与阿裕尼–后港市镇理事会（AHTC）针对AHTC市镇理事所提诉讼中上诉庭判决的媒体答复 1 国家发展部关切地注意到SKTC与AHTC所提诉讼中上诉庭的判决。上诉庭裁定，AHTC的市镇理事（包括林瑞莲女士、刘程强先生及毕丹星先生）以及两名前AHTC雇员，在落实AHTC付款流程方面存在严重疏忽。利益冲突人士的参与以及缺乏保障措施，造成了超额付款的内在风险。 2 上诉庭裁定，市镇理事及两名前AHTC雇员在向FMSS支付总值2,300万新元的款项（来自公共资金）时存在严重疏忽。上诉庭也裁定，向FMSS及FMSI支付的全部款项合计3,370万新元，均“由利益冲突人士或FMSS雇员联署”。 3 此外，林女士被裁定在将合约授予Red-Power Electrical Engineering Pte Ltd时未本着诚信行事，其费率比提供相同服务的现任供应商Digo Corporation Pte Ltd及Terminal 9 Pte Ltd高出四至七倍。 4 由于涉及公共资金，国家发展部将继续关注SKTC与AHTC对市镇理事所提诉讼的进展，包括高等法院对损害赔偿的评估。 国家发展部 2023年7月7日 附件：裁断摘要 · 上诉庭最终裁定，AHTC的市镇理事（林瑞莲女士、刘程强先生、毕丹星先生、蔡志翰先生、符传财先生）以及两名前AHTC雇员（何荣芬女士及Danny Loh先生）在落实AHTC付款流程方面“严重疏忽”，导致付款流程中的“控制失效”持续存在。 · 市镇理事任命何女士及Loh先生（两人为工人党长期支持者）分别担任AHTC总经理及秘书。尽管何女士及Loh先生是FM Solutions & Services Pte Ltd（FMSS）与FM Solutions & Integrated Services Pte Ltd（FMSI）的主要股东，而这两家公司分别担任AHTC的管理代理及基本维修服务单位（EMSU）承包商。 · 在2011年至2015年期间，何女士代表FMSS向AHTC提交付款申索，随后又代表AHTC批准向FMSS付款。Loh先生也代表FMSI向AHTC提交付款申索，而何女士则代表AHTC批准向FMSI付款。利益冲突人士的参与以及“缺乏保障措施”，造成了超额付款的内在风险。 · 此外，林女士被裁定在将合约授予Red-Power Electrical Engineering Pte Ltd时未本着诚信行事，其费率高出四至七倍，而未续约现任供应商Digo Corporation Pte Ltd及Terminal 9 Pte Ltd，后者以显著更低的费率提供相同服务。