# MND's Statement on Court of Appeal's Judgement in Lawsuit brought by SKTC & AHTC on AHTC's Town Councillors

- **Source:** Ministry of National Development
- **Published:** 2022-11-09T10:30:00.000Z
- **Author:** Ministry of National Development
- **Original:** https://www.mnd.gov.sg/newsroom/press-releases/view/mnds-statement-on-court-of-appeals-judgement-in-lawsuit-brought-by-sktc-ahtc-on-ahtcs-town-councillors
- **Topics:** Investment & Capital Markets

## Featured rationale

The judgment signals heightened accountability for town-council financial governance and may encourage tighter controls over public funds used for municipal and estate management.

## AI summary

The Court of Appeal found that several AHTC councillors and employees lacked good faith concerning more than $23 million paid to FMSS from 2011–2014.

## Original article

PRESS STATEMENT BY MINISTRY OF NATIONAL DEVELOPMENT ON COURT OF APPEAL’S JUDGEMENT IN THE LAWSUIT BROUGHT BY SENG KANG TOWN COUNCIL (SKTC) AND ALJUNIED-HOUGANG TOWN COUNCIL (AHTC) ON AHTC’S TOWN COUNCILLORS

MND notes with concern that in the lawsuit brought by SKTC and AHTC, the Court of Appeal has found that Ms Sylvia Lim, some other AHTC Town Councillors and employees did not act in good faith in respect of $23 million in payments to FMSS.

2 They knew that there were "manifest conflicts of interest", they knew of the risk of overpayments/ improper payments to FMSS/FMSI — the CA said the extent of this risk “cannot be overstated”. Their payments process was a "paradigm example of poor financial governance".

3 As a result, over a period of three years, from 2011 to 2014, AHTC disbursed over $23m to FMSS.

4 The Court of Appeal has directed that parties make submissions on matters relating to damages in respect of the payments made.

5 MND will be monitoring the proceedings as public funds are involved.

Ministry of National Development

9 November 2022

## Chinese translation

> Translation model: grok_cli

### 国家发展部就上诉庭对盛港市镇会与阿裕尼—后港市镇会就阿裕尼—后港市镇会市镇议员诉讼所作判决的声明

国家发展部新闻声明：关于上诉庭对盛港市镇会（SKTC）与阿裕尼—后港市镇会（AHTC）就阿裕尼—后港市镇会市镇议员诉讼所作判决

国家发展部关切地注意到，在盛港市镇会与阿裕尼—后港市镇会提起的诉讼中，上诉庭认定林瑞莲女士、部分其他阿裕尼—后港市镇会市镇议员及雇员，在涉及向FMSS支付的2300万新元款项方面，未本着诚信行事。

2 他们明知存在“明显的利益冲突”，也明知向FMSS/FMSI支付超额/不当款项的风险——上诉庭指出，这一风险的程度“不容低估”。其付款流程是“财务治理不善的典型范例”。

3 因此，在2011年至2014年的三年期间，阿裕尼—后港市镇会向FMSS支付了超过2300万新元。

4 上诉庭已指示各方就与该等付款相关的损害赔偿事项提交陈词。

5 由于涉及公款，国家发展部将密切关注后续程序。

国家发展部

2022年11月9日