Follow us on Telegram for the latest updates: https://t.me/mothershipsg

The Court of Appeal on Tuesday, Nov. 9 ruled that Workers’ Party (WP) leaders and others involved in running the Aljunied-Hougang Town Council (AHTC) acted in good faith when they decided to waive the tender for a managing agent after the 2011 general election.

Apex court reverses parts of High Court's judgement

The apex court allowed part of the appeals brought about by the WP leaders and related parties in the AHTC case and ruled that the members and senior employees of AHTC do not owe the town council fiduciary or equitable duties.

This amounts to a partial overturning of the previous judgement.

The WP leaders involved include current party chief Pritam Singh, as well as former WP chief Low Thia Khiang and party chairman Sylvia Lim.

There were previously found in a 2019 High Court judgment to have breached their fiduciary duties to the AHTC.

Singh was found to have breached his “duties of skill and care”, while Low and Lim were found in have breached their fiduciary duties to the AHTC in a 2019 High Court judgment.

The written judgment, available online, was by the five-member court led by Chief Justice Sundaresh Menon.

The court cited Section 52 of the Town Councils Act, where a person acting for a town council is immunised from personal liability, in its written decision.

Chief Justice Menon said the town councillors had acted in good faith on the matter of waiving the tender and awarding the first contract for managing agent services to FMSS (FM Solutions & Services).

Still liable for "gross negligence" in payments process

The appeal finding still found that all three are still liable to AHTC for "gross negligence" in certain respects relating to the payments process.

The highest court in Singapore noted that they were grossly negligent in the payments process to town council managing agent FMSS, given the town councillors were aware of conflicts of interest.

However, this means that they may still be liable for damages.

The WP Members of Parliament and AHTC councillors were accused of breaching their fiduciary duties in the appointment of FMSS.

FMSS was led by How Weng Fan, who is Low's long-time colleague from Hougang Town Council.

This appointment allegedly allowed "improper" payments of more than S$33 million to FMSS, its service provider FM Solutions & Integrated Services (FMSI) and third parties.

Top photo via In Good Faith blog