National Development Minister Lawrence Wong has issued an order under the Town Councils Act that requires Aljunied-Hougang Town Council (AHTC) to restrict their powers on certain financial decisions.

AHTC has to comply

On Jan. 3, the Ministry of National Development (MND) announced that pursuant to Section 43D (2) (b) of the Act, "Remedial Action to rectify deficiencies", AHTC has to take certain measures that include:

"To mandate that Ms Lim and Mr Low shall not have the authority (either by way of delegated powers or otherwise) to unilaterally incur or approve expenditure on behalf of AHTC;

To mandate that Ms Lim and Mr Low shall not have the authority (either by way of delegated powers or otherwise) to unilaterally accept or waive any quotation or tender for any stores, services or works on behalf of AHTC; and

To mandate that Ms Lim and Mr Low shall not serve as cheque signatories for AHTC."

Vote of no recusal

This order comes after AHTC voted on Nov. 30 not to compel Low and Lim to recuse themselves from financial matters.

The vote, according to AHTC Chairman Faisal Manap, was 17 to 1.

Neither Low nor Lim attended the meeting or vote.

Parliamentary motion filed by DPM Heng in Nov. 2019

Previously, during a session of Parliament on Nov. 5, Deputy Prime Minister Heng Swee Keat filed a motion calling on Low and Lim to recuse themselves from all financial matters in AHTC.

This was done after the High Court found in October 2019 that they were liable for damages to AHTC and had been in breach of their fiduciary duties.

On Nov. 11, the WP members and town councillors filed an appeal against the High Court’s ruling.

The Parliamentary motion was passed, but it was not legally binding.

However, the current order issued under the Town Councils Act would force AHTC to comply.

AHTC's reasons and measures not enough for MND

According to MND's media statement, the order does not stop Lim and Low from continuing to serve as elected members of the town council, including taking part in discussions and voting in committees.

MND wrote to AHTC on Dec. 4 to "request for information on AHTC’s reasons for not requiring Ms Lim’s and Mr Low’s recusal on all of AHTC’s financial matters, and whether AHTC intends to implement other interim measures or safeguards".

They received a reply on Dec. 13.

MND said that the reasons provided by AHTC for not requiring a recusal do not relate directly to or detract from the "grave and serious Court findings on Lim and Low's conduct".

MND added that it was not apparent to them how AHTC's measures would be effective to guard against irregularities "arising from the acts of dishonest town councillors".

MND also noted that Lim and Low have filed an appeal against the High Court judgment, and will review the order once the outcome has been announced.

Top image from MND's Facebook page and In Good Faith blog.