AHTC trial: WP took over a town council 'stripped' of its computer system

Such were the circumstances of taking over a GRC.

Matthias Ang | October 08, 2018, 04:51 PM

The Workers' Party Town Council trial entered its second day on Monday, Oct. 8.

The defence put forth the statement that the lawsuits filed against the Workers' Party Members of Parliament (MPs) and other defendants failed to account for the circumstances that they faced.

In particular, one of the more major issues that the defendants had to contend with was the taking over of a town council “stripped of its town council management computer system (TCMS)”, according to the defence.

Who are the defendants and why are they being sued?

The case involves eight defendants who are facing lawsuits filed by Aljunied-Hougang Town Council (AHTC), run by an independent panel, and Pasir Ris-Punggol Town Council (PRPTC).

These lawsuits concern over S$33.7 million in payments to FM Solutions & Services (FMSS) and service provider FM Solutions and Integrated Services (FMSI) made by the Worker's Party Town Council.

The lawsuits allege that these payments were improper and void.

The defendants are:

  • WP MP Sylvia Lim
  • WP MP Pritam Singh
  • WP MP Low Thia Khiang
  • Aljunied-Hougang Town Council (AHTC) councillor Chua Zhi Hon
  • AHTC councillor Kenneth Foo Seck Guan
  • General Manager/Deputy Secretary of AHTC How Weng Fan
  • AHTC’s former managing agent FM Solutions & Services (FMSS)
  • FMSS owner Danny Loh, who died in 2015. He is represented by How, his widow.

What's the deal surrounding the TCMS and why is it being cited by the defence?

As defence lawyer Leslie Netto elaborated, the TCMS was “integral for recording management matters and financial documentation”.

It had been sold by the previous Aljunied Town Council (ATC) management to IT firm Action Information Management (AIM).

Netto has stated that How will testify further regarding the subsequent termination of TCMS by IT firm Action Information Management (AIM) after WP took over management of the former Aljunied Town Council (ATC) in the wake of the 2011 General Election.

WP had to migrate and upscale its computer system from Hougang SMC

According to Netto, this resulted in the new AHTC under WP migrating the computer system used in Hougang Single Member Constituency (SMC) to Aljunied Group Representation Constituency (GRC) for usage.

This move also necessitated the upscaling of the computer system from its original scale in order to meet the demands of managing a GRC.

As Netto further stated, Loh, How and FMSS “worked tirelessly” in order to achieve this, receiving “no remuneration” for the work.

Netto added that:

"Despite this, AHTC was subjected to continuing audit from 2012 to 2016... During the early part of this period, AHTC was still in the process of upscaling the computer system. And yet, no one, not even KPMG or PwC, mentions this withdrawal of this vital TCMS and its effects.

Circumstances need to be taken into account

Such circumstances need to be accounted for in the context of the so-called "improper" payments made by AHTC to FMSS and FMSI.

Netto said:

“It is (my clients’) case that in all these audit reports the plaintiffs have failed to recognise the predicament that AHTC was in".

Netto added that additional testimony from How will clarify this point on payment circumstances further.

"Acted in good faith and in the best interests of the residents"

Netto also took aim at PRPTC's acting lawyer Davinder Singh's claim that FMSS "got carte blanche to engage new staff as necessary".

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Dismissing Singh's claim, Netto stated that both How and Low, despite being the deputy secretary and secretary of AHTC, were still required to report to the town council and obtain sanctions from Lim, the superintending officer who "was thorough and made many inquiries".

Such actions were, in the words of the defence's opening statement on Oct. 5, "in good faith and in the best interests of the residents".

The trial continues.

Top image screenshot from CNA video