The Aljunied-Hougang Town Council (AHTC) trial rumbled on with a clash between Senior Counsel Davinder Singh and Workers' Party (WP) Secretary-General Pritam Singh on Oct. 25.

This was the first time that Pritam had been cross-examined by Davinder for the trial. Wearing a blue shirt, Pritam took the stand.

Early in the proceedings, Davinder referred to Pritam's concerns in his affidavit that Managing Agent companies would not want to work with WP-held town councils.

Why not call for a tender

Davinder asked if it had crossed Pritam's mind to test those concerns via doing a tender, to see if Managing Agents would want to do so.

Pritam replied it was his "true and honest belief" that with respect to Singapore's political culture, it was not wise to expect that they would provide the same level of service to a WP-held town council compared to a PAP-held one. Said Pritam:

"I did not need to test that via a tender."

He added that he believed at the time the WP had a short time to take over the town council.

It was a sign of things to come.

Nothing to hide

Davinder took Pritam through May 2011, the month in which the WP won Aljunied GRC.

On May 30, 2011, the elected members held a meeting with the Managing Agent at the time, CPG Facilities Management.

There, they learned that CPG was no longer willing to continue serving in Aljunied.

Pritam said that while he understood that a team from Hougang would be taking over should CPG pull out, he was not aware of the incorporation of FM Solutions & Services (FMSS), as of May 30.

Davinder asked Pritam when he first learned that FMSS had been incorporated. Pritam replied that he couldn't be sure of the exact date, but said it might be in June or July 2011.

Davinder referred to FMSS's Letter of Intent that stated their taking over of the town council, dated June 15, 2011. Pritam received this letter via email on July 6, 2011. He asked:

"When you saw that letter, did you know who FMSS was?"

Pritam replied yes. Davinder then asked if this was the first time he heard of FMSS.

In reply, Pritam said:

"I’m not sure. We’re only going by documents here, I’m being asked to remember something that took place seven years ago. The document is helpful, but I can’t recall whether this was the first time."

Davinder said that was "troubling". He then referred to Pritam's affidavit, in which he stated that he was aware that Low Thia Khiang and Sylvia Lim were in discussions with How Weng Fan and Danny Loh about setting up an MA company.

How and Loh would later become majority owners of FMSS.

The affidavit also stated that Pritam knew preparatory steps were being taken, including meetings, one of which took place in early-June 2011.

Davinder asked Pritam why his affidavit stated he was aware of these discussions, but said he couldn't remember it in court. He asked:

"Why was it necessary for you to give the court the impression you weren’t aware about the discussions of incorporating a company? What do you need to hide from the court?"

Pritam replied:

"Mr Singh, I don't need to hide anything."

[related_story]

Trying to recall past events

Davinder asked if Pritam had reviewed CPG's contract after learning that they were not willing to continue serving as the Managing Agent.

Pritam said he did not. He said that the individuals handling that side of things were mainly Low and Lim, while the other MPs were more concerned about the wards they were going to manage.

Said Davinder:

"You still had a duty as a town councillor, agree?"

Pritam replied:

"I don't deny shirking those responsibilities. The answer is yes."

Davinder asked if Pritam's other duties prevented him from checking the contract, to which Pritam replied they did not.

He then asked if Pritam could remember suggesting calling for a tender, having learned that CPG wanted out, and knowing that a new Managing Agent was going to replace them.

When Pritam said he could not recall if he attended a discussion where "anyone" suggested to call a tender, Davinder said:

"You can't recall so many things."

To which Pritam replied:

"You want the truth? I'm giving you the truth."

Davinder said that Pritam had difficulty remembering relevant matters, Pritam replied that because they occurred some years ago, he did not have a "very clear" memory of the entire range of issues discussed by Davinder.

Pritam brought up LKY's remarks on Aljunied residents

Davinder then said that Pritam knew three things as of July 6, 2011, when he read FMSS's Letter of Intent:

• CPG wanted out, although their contract obliged them to stay on for a couple more years.
• FMSS was going to replace CPG.
• There was no tender called.

Davinder asked if it crossed Pritam's mind to ask when FMSS's appointment as Managing Agent would be announced. Pritam replied he did not ask.

He agreed with Davinder that it was in the residents' interest to be informed, but he said the other town councillors also needed to be contacted first. Said Davinder:

"All it takes is one email! Why wasn't it done?"

Pritam replied that he expected to discuss those matters, among others, during an upcoming town council meeting.

Impact of announcement on industry

Asked Davinder:

"Did it occur to you that when an announcement was made of FMSS’s appointment, the industry would learn that AHTC did not call a tender?"

Replied Pritam:

"Yes, of course."

He then agreed with Davinder that other MA companies would be able to learn that How and Loh were involved with FMSS through an ACRA search.

Davinder asked:

"If the industry saw that AHTC had appointed Ms How without a tender, would it affect their view on whether they could get a contract?"

Pritam replied:

"It didn't occur to me."

Reality of politicised town councils

Davinder then said:

"Mr Singh, a responsible town councillor would apply his mind to the implications of waiving a tender on future prospects of parties in the industry being interested in making a bid."

Pritam replied:

"I disagree, because a responsible town councillor needs to understand what is the difference between his town council, PAP town councils, and the reality of the politicised town council space in Singapore."

He said that the industry would treat the first opposition-held GRC town council in Singapore's history differently to others, at the time. Added Pritam:

"Particularly after Mr Lee Kuan Yew himself said that Aljunied residents would have five years to repent."

He said that was why the Town Council Act included a clause for a waiver, presumably due to the chance of a political change happening.

Future bids

However, Pritam did not discount the possibility of future bids, depending on the market.

Davinder contended that by waiving the tender, AHTC was sending a message to the industry, saying that they would go it alone.

He also said that by giving FMSS a one-year contract and calling for a tender in 2012, this exposed AHTC to an increase in prices from FMSS's new bid.

If FMSS had been given a two-year contract in 2011, they would not have an opportunity to raise their prices.

Pritam disagreed:

"It would be better to give FMSS a one-year time period. And after one year, you can open it to the market and get a better rate in case other players come in."

Davinder said that Pritam could not have it both ways, first saying that no company wants to work with AHTC, but also expecting other bids. Pritam replied:

"Mr Singh, the market has money to make from an MA contract. They have to make a business calculation. Do they go in knowing it’s an opposition town council, or do they not go in? I can’t speak for the market."

Justice Kannan Ramesh intervened, and asked Pritam that if he believed there were potential bids in 2012, it followed that there could also have been potential bids in 2011.

Pritam said that was true in theory, but at the time the WP had a short time to take over. He said:

"At that time it was possible, but we wanted to take over the council fast, stabilise operations and then move forward. That’s what we were labouring under."

The trial continues in the afternoon of Oct. 25.

Top image adapted from pics by Jason Fan and Guan Zhen Tan.

Content that keeps Mothership.sg going

?
This is what it feels like to have your hair removed by intense bursts of light.

? vs ?
You're on the MRT. Do you read or surf?
Why not both??