# MND Cancels Rectification Order Issued To Aljunied-Hougang Town Council And Seeks Clarification Following Court Of Appeal’s Judgments

- **Source:** Ministry of National Development
- **Published:** 2023-08-22T02:00:00.000Z
- **Author:** Ministry of National Development
- **Original:** https://www.mnd.gov.sg/newsroom/press-releases/view/mnd-cancels-rectification-order-issued-to-aljunied-hougang-town-council-and-seeks-clarification-following-court-of-appeal-s-judgments
- **Topics:** Market Updates

## Featured rationale

MND’s continuing review of payment and procurement responsibilities signals sustained governance scrutiny, which may help safeguard public funds allocated to estate management.

## AI summary

MND cancelled its January 2020 Rectification Order against Aljunied-Hougang Town Council after Court of Appeal judgments issued in November 2022 and July 2023.

## Original article

The Minister for National Development has cancelled the Rectification Order (“Order”) issued to Aljunied-Hougang Town Council (“AHTC”) in January 2020. Details of the Order are in the Annex to this Statement.

2. The Minister notes that the Court of Appeal (“CA”) has found that Ms Sylvia Lim (“Ms Lim”), Mr Low Thia Khiang (“Mr Low”), Mr Pritam Singh (“Mr Singh”), Mr Chua Zhi Hon (“Mr Chua”), Mr Kenneth Foo (“Mr Foo”), Ms How Weng Fan (“Ms How”) and Mr Danny Loh (“Mr Loh”) 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. The CA also found them to be grossly negligent. They allowed the Managing Agent, FM Solutions & Services Pte Ltd (“FMSS”), to pay monies to itself, and others, without proper controls. Monies could be paid, even if work was not done, or not properly done.

3. Further, the CA also found that Ms Lim was responsible, for a contract to Red-Power Electrical Engineering Pte Ltd at rates that were four to seven times higher than those offered by the then existing vendor, Digo Corporation Pte Ltd and Terminal 9 Pte Ltd.

4. Ms Lim and Mr Singh remain as AHTC’s town councillors today. In addition, Ms Lim is a member of the Audit Committee and a member of the Estate & Community Liaison Committee; and Mr Singh chairs the Public Relations Committee and is also a member of the Tenders and Contracts Committee and the Estate & Community Liaison Committee. As such, they may continue to be involved in implementing and/or monitoring AHTC’s payment process, as well as make procurement decisions.

5. Given the CA’s findings of Ms Lim and Mr Singh acting without good faith, and in gross negligence, MND has written to AHTC seeking information on: (i) Ms Lim’s and Mr Singh’s specific powers and duties in relation to their involvement in AHTC’s payment and procurement processes, (ii) actions that AHTC intends to take, if any, in relation to Ms Lim and Mr Singh, given the CA’s findings that they acted without good faith, and in gross negligence and (iii) such other actions AHTC 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.

Issued by: Ministry of National Development

Date: 22 August 2023

Annex:

· The Order had required AHTC to take action to guard against a recurrence of irregularities in AHTC’s 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. The Order noted that Ms Lim and Mr Low had filed an appeal against the judgment and indicated that the Minister would review the Order after the appeal had been heard and disposed of.

· The CA’s judgments have been released in November 2022 and July 2023. The Minister has considered the CA’s findings that Ms Lim and Mr Low do not owe fiduciary duties to AHTC, and upon review, decided to cancel the Order.

## Chinese translation

> Translation model: grok_cli

### 国家发展部撤销向阿裕尼—后港市镇理事会发出的纠正令，并在上诉庭判决后寻求澄清

国家发展部长已撤销于2020年1月向阿裕尼—后港市镇理事会（“AHTC”）发出的纠正令（“该命令”）。该命令详情载于本声明附件。

2. 部长注意到，上诉庭（“CA”）裁定林瑞莲女士（“林女士”）、刘程强先生（“刘先生”）、毕丹星先生（“毕先生”）、蔡志汉先生（“蔡先生”）、符致镜先生（“符先生”）、何荣芬女士（“何女士”）及罗丹尼先生（“罗先生”）在履行职责时并非善意行事。这是一项严重的裁断。他们在AHTC的付款程序中并非善意行事。上诉庭亦裁定他们有重大疏忽。他们容许管理代理FM Solutions & Services Pte Ltd（“FMSS”）在缺乏妥善管控的情况下向其自身及其他方支付款项。即使工程未完成或未妥善完成，款项仍可被支付。

3. 此外，上诉庭亦裁定，林女士须就与Red-Power Electrical Engineering Pte Ltd所订合约负责，该合约收费比当时现有供应商Digo Corporation Pte Ltd及Terminal 9 Pte Ltd所报价格高出四至七倍。

4. 林女士与毕先生至今仍为AHTC市镇议员。此外，林女士为审计委员会成员及产业与社区联络委员会成员；毕先生则担任公共关系委员会主席，亦是招标与合约委员会以及产业与社区联络委员会成员。因此，他们可能继续参与实施及/或监督AHTC的付款程序，以及作出采购决定。

5. 鉴于上诉庭裁定林女士与毕先生并非善意行事且有重大疏忽，国家发展部已致函AHTC，要求提供以下资料：（i）林女士与毕先生在参与AHTC付款及采购程序方面的具体权力与职责；（ii）鉴于上诉庭裁定他们并非善意行事且有重大疏忽，AHTC拟就林女士与毕先生采取的任何行动（如有）；以及（iii）AHTC拟采取的其他行动。在接获AHTC的回复后，部长将考虑是否有必要根据《市镇理事会法令》采取进一步监管行动，以保障托付给市镇理事会的公款。

发布机构：国家发展部

日期：2023年8月22日

附件：

· 该命令要求AHTC采取措施，防止其财务事务中的不当情况再次发生，具体方式是限制两名市镇议员林女士与刘先生在若干财务决定方面的权力。

· 部长是根据《市镇理事会法令》发出该命令的，因为尽管高等法院已裁定林女士与刘先生违反了对AHTC的受信义务，AHTC仍未要求他们回避财务事务。该命令注明，林女士与刘先生已就判决提出上诉，并表明部长将在上诉审理并了结后检讨该命令。

· 上诉庭判决已于2022年11月及2023年7月发布。部长已考虑上诉庭关于林女士与刘先生对AHTC不负有受信义务的裁断，并在检讨后决定撤销该命令。