The regulators have now stepped in.

The Housing and Development Board (HDB) issued a statement on Jul 26, saying that it is studying the lawsuit filed against Aljunied GRC MPs Low Thia Khiang, Sylvia Lim and Pritam Singh and a number of others, over alleged improper payments related to the financial management of Aljunied-Hougang Town Council (AHTC), and has asked the Attorney General's Chambers (AGC) to advise on the matter.

The three WP MPs have denied all allegations in a press release on the same day.

They were served with a Statement of Claim against them by AHTC on July 25 by the independent panel appointed by the AHTC.

HDB: Panel is seeking compensation of more than $33 million

According to HDB's statement, the claim document "sets out allegations of breaches of fiduciary duty and improper payment of town council funds" and also "contains serious allegations of misconduct by various defendants.

These allegations include:

- Lim and Low had misled the town council, and gave false or inadequate reasons to justify a waiver of tender and allowed the appointment of AHTC’s former managing agent FM Solutions and Services (FMSS).

- Lim and Low had decided on AHTC’s behalf that the town council’s then-deputy secretary and general manager How Weng Fan and her late husband Danny Loh would set up and incorporate FMSS. This was done even before the incumbent managing agent, CPG, had apparently expressed a preference to be released.

- The appointment of FMSS and FM Solutions and Integrated Services (FMSI) – the former Essential Maintenance Services Unit contractor for AHTC – was “made in bad faith and/or improper purposes”, including to benefit the two FMSS owners.

The independent panel appointed in February is chaired by senior counsel Philip Jeyaretnam, and comprises senior counsel N. Sreenivasan and KPMG managing partner Ong Pang Thye.

HDB statement says that the panel is asking to rescind the contracts with FMSS and FMSI, and is seeking compensation wrongfully paid out to the companies of more than S$33 million – subject to Lim, Low, FMSS/FMSI or Ms How showing which payments were lawful.

[related_story]

Here is the full statement from HDB:

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Top image adapted from Wikipedia