Ownself check ownself

Ex-IPP director Goh Jin Hian wins appeal, court says firm failed to prove his breach caused losses​

Goh Jin Hian served as a director of Inter-Pacific Petroleum from June 28, 2011 to Aug 20, 2019.


Goh Jin Hian outside the State Courts on Sept 20, 2023.PHOTO: SHIN MIN DAILY NEWS FILE

Grace Leong
Jun 05, 2025

SINGAPORE - The Court of Appeal has found Goh Jin Hian, a former director of insolvent marine fuel supplier Inter-Pacific Petroleum (IPP), is not liable to pay US$146 million (S$187 million) plus interest in compensation for losses suffered by the firm.

In overturning a lower court ruling that found Goh was not entitled to relief from liability, the Appellate division of the High Court clarified that “it cannot be part of a director’s duty of supervision and oversight to pick up fraud unless there are tell-tale warning signs.

“A director may be a sentinel, but he is not a forensics investigator or a sleuth, unless there are signs that would put him on inquiry,” according to a 63-page ruling on June 5 delivered by Justice Kannan Ramesh, a Judge of the Appellate division.

“While we agree with the (High Court) Judge that Dr Goh had breached the care duty by reason of his ignorance of the cargo trading business, IPP has failed to show... that the breach caused the loss in question,” the Appellate court said.

Goh, the son of former prime minister Goh Chok Tong, served as a director of IPP from June 28, 2011, to August 2019.

Senior Counsel Thio Shen Yi of TSMP Law Corp, who represented Goh, noted that the latest decision is an important clarification on the law of the duties of directors.

“Dr Goh has always maintained that his conduct caused no avoidable loss to IPP, and we believe he has been vindicated. This is an important decision that has practical implications for all directors,” said Mr Thio, who acted for Goh with Ms Nanthini Vijayakumar, a partner of TSMP Law.

Deloitte & Touche, IPP’s judicial managers turned liquidators, had sued Goh to recover US$156 million in losses, accusing him of “sleepwalking through his time as a director”, and failing to discover and stop drawdowns in trade financing between June 2019 and July 2019 to fund alleged non-existent or sham transactions.

High Court Justice Aedit Abdullah had found that Goh is not entitled to relief from liability because of “the egregiousness of his breaches of duty, chief among which was his ignorance as to IPP’s cargo trading business” – a “vehicle of fraud” that had “disastrous consequences” for the company.

Goh had appealed the ruling in February 2024 that found him liable for breach of director’s duties and statutory duties and losses suffered by IPP.

In allowing Goh’s appeal, the Appellate court found that the three purported red flags that IPP relied on “were not in fact red flags that would have put Dr Goh on a train of inquiry leading to the fraud in the cargo trading business being uncovered and the loss thereby averted.”

The Appellate court concluded that this was a case of “deep-seated fraud.”

Although Dr Goh was not aware of the cargo trading business, the court ruled that “it does not follow that if Dr Goh had been aware of the cargo trading business, he would have discovered the fraud and thereby put a stop to it”.

“There is no suggestion by IPP there were any, apart from the ‘red flags’, which we have concluded were not in fact red flags. Further, there was no allegation that the auditor and IPP’s financial manager alerted Dr Goh of any issues with the accounts, or that the monthly management accounts and financial statements suggested anything untoward.

“Thus, there is nothing to the point that if Dr Goh had been aware of the cargo trading business, he would have exercised oversight in a manner which would have picked up the fraud and averted the loss.” the Appellate court wrote.

Mr Thio said: “Directors owe fiduciary obligations and duties of care to a company but the Appeals Court has crucially recognised the practical and commercial limits to their ability to scrutinise for and detect fraud, especially deep-seated fraud. This acknowledges the complex commercial realities that directors often operate in.”
 

Forum: Income should focus on organic growth and not seek a strategic partner​

Dec 23, 2024

I wish to comment on statements issued by Allianz, Income and NTUC Enterprise on Dec 16 (Allianz calls off deal with Income Insurance after public scrutiny, Dec 16).

First, Allianz announced that it was withdrawing its offer to acquire a majority stake in Income Insurance. It also stated that the decision to withdraw it underscored “Allianz’s financial discipline”.

I welcome the decision by Allianz to withdraw its offer. However, the decision to withdraw is not based upon Allianz’s financial discipline but on the Singapore Government’s opposition to the sale and the strong public opinion against the sale.

Second, I am surprised that the leaders of Income and NTUC Enterprise continue to insist that their decision to sell a majority stake in Income to Allianz was the right decision. Let us be clear about the facts.

The proposed transaction was not a merger of equals but an acquisition. Allianz, with 51 per cent of the shares, would control Income. It is therefore not credible for Income and NTUC Enterprise to continue to insist that the transaction would not jeopardise Income’s social mission.

For this reason, Minister Edwin Tong told Parliament in October that the Ministry of Culture, Community and Youth (MCCY) was not satisfied that Income would be able to continue fulfilling its social mission after the proposed transaction.

Third, the statements by Income and NTUC Enterprise do not refer to an important point, which was one of the reasons for the Government’s decision to block the transaction. When Income ceased to be a cooperative, it had an accumulated surplus of $2 billion. In normal circumstances, this surplus would have to be transferred to the Co-op Societies Liquidation Account. The money would be used to benefit the co-op sector generally.

The regulator, MCCY, gave Income an exemption from this requirement, on the understanding that the surplus would be transferred to a new corporate entity and strengthen its capital base. In violation of this understanding, Allianz proposed that Income should reduce its capital and return $1.8 billion to its shareholders.

Speaking in Parliament, Mr Tong said: “We find it difficult to reconcile the proposed substantial capital reduction, soon after the transaction is completed, with Income’s representations to MCCY during the corporatisation exercise, that it was aiming to build up capital resources and enhance its financial strength.”

I think the leaders of Income and NTUC Enterprise should apologise to MCCY for not honouring this undertaking.

Fourth, going forward, I would advise the leaders of Income and NTUC Enterprise to stop trying to sell Income to a larger insurance company. Income is a very successful social enterprise. It should focus on organic growth and not on seeking a strategic partner.

Fifth, there is one other point to raise. I understand that the chairman of Income is also the chairman of Morgan Stanley. In view of this, it was inappropriate for Income to appoint Morgan Stanley as its financial adviser. The chairman has explained that he took no part in the board’s decision to appoint Morgan Stanley. He should have advised his board not to appoint his bank because it gives rise to an appearance of conflict of interest.

Tommy Koh (Prof)
 

MRT delays: COI not needed as LTA probe ongoing, no systemic issue with rail operators, says Chee​

ST20250210_202545600138/Steph/Train delay on the North East Line (NEL) at Serangoon MRT station on Feb 10, 2025 on Monday morning due to a signalling fault. Signs to inform commuters about the delay were put up at the station entrances. This shot was taken after regular services had resumed.

Train services on the North East Line were delayed on Feb 10 due to a signalling fault. It was one of three rail delays over a span of five days in February.

Feb 26, 2025

SINGAPORE – There is no systemic issue with rail operators SBS Transit and SMRT regarding the three MRT delays in February, which are being investigated by the Land Transport Authority (LTA). The Government will thus not convene a committee of inquiry (COI), said Transport Minister Chee Hong Tat.

“There isn’t a systemic issue or concern with SBS Transit or SMRT that, I think, will change our position on the necessity for a COI,” he added on Feb 26.

Mr Chee was responding in Parliament to a question by Progress Singapore Party Non-Constituency MP Leong Mun Wai, which was among several questions about the three rail delays on the North-South, North East and Circle lines over a span of five days earlier in February.

Mr Leong had asked if Mr Chee would convene a COI for the three incidents, given that his previous call for a COI over a major East-West Line (EWL) breakdown was rejected.

Reiterating that LTA is looking into the root causes of the three incidents in February, Mr Chee said the authority will do its best to identify the learning points and share them with the operators.

He referred Mr Leong to his ministerial statement in October 2024, when he explained why a COI was not convened for the breakdown that led to a six-day disruption along a stretch of the EWL in September 2024, which affected about 2.6 million passengers.

He had said in October 2024 that LTA would do a thorough investigation to ascertain what happened and identify areas for improvement, as the regulator has the “necessary regulatory powers and technical knowledge” to investigate serious rail incidents. That probe is still under way.

In December 2011, then Prime Minister Lee Hsien Loong had ordered a COI after three breakdowns in four days on the North-South Line, which affected more than 200,000 passengers.

Mr Chee emphasised that although the incidents in February 2025 happened in quick succession, they are unrelated to one another and to the EWL train breakdown in September 2024.


Mr Leong had also asked whether LTA would look into potential problems in staffing, staff turnover, skill level and morale in the engineering and maintenance departments of operator SMRT, beyond the hardware issues.

To this, Mr Chee said the authorities have been looking into these issues, and will review the whole system of operations and maintenance.


The minister also provided updates on the early findings of the investigations into the three rail delays.

First, for the incident along the North-South Line (NSL) on Feb 7, he said only three out of 39 trains that were scheduled to serve the line had been launched from Bishan Depot when an engineering vehicle broke down at a railway crossing in the depot around 5.15am.

As a result, SMRT had to redirect some trains from the EWL to the NSL, creating longer waits for trains on both lines.

When SMRT tried to move the stalled engineering vehicle using a rescue train, some of the wheels of the engineering vehicle came off the rails.

The derailed vehicle prevented trains serving the NSL from leaving the depot.

Mr Chee added that SMRT had to use hydraulic equipment to slowly lift and shift it off the tracks, and finished doing so around 5.30pm. Trains were successfully launched from Bishan Depot at 6.36pm.

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Services on the North-South Line were delayed after an engineering vehicle derailed at Bishan Depot on Feb 7.

ST PHOTO: KEVIN LIM

Hougang MP Dennis Tan asked if engineering vehicles are subject to the same maintenance standards as passenger trains, and if SMRT would look at better service recovery of stalled engineering vehicles along the tracks.

Mr Chee replied that these engineering vehicles are not subject to exactly the same maintenance regime as regular MRT trains because the nature of their operation is different from that of passenger trains. He added that LTA is still investigating why the engineering vehicle broke down.

On service recovery, Mr Chee said SMRT “tried their very best” to move the train as quickly as possible by sending the rescue train to push the stalled engineering vehicle. But, as the wheels of the engineering vehicle had come off, the process became more time-consuming and labour-intensive.

On the North East Line (NEL) incident on Feb 10, Mr Chee noted that it was caused by a signalling fault near Buangkok station at around 6.08am, which prevented trains from being controlled automatically. Therefore, the trains had to be driven manually and at slower speeds.

Early investigations showed that the signalling fault was caused by a malfunctioning electronic card in the signalling system, and there were no prior signs of malfunction during maintenance checks.

SBS Transit then replaced the malfunctioning electronic card and restored the operation of the signalling system at around 8am. The electronic card has been sent to the system manufacturer for further examination.

Lastly, on the Circle Line (CCL) incident on Feb 11, Mr Chee said further investigations showed that the incident was due to a signalling fault, and not a power trip, as previously indicated.

After the signalling fault caused a temporary loss of communication between a CCL train and the trackside signalling equipment at about 8.15am, the train engaged its brakes and stopped moving, in accordance with safety protocols.

For safety, the other trains near it also came to a stop. Mr Chee noted that 17 trains between Paya Lebar and Marymount stations were temporarily halted.

But when train operations were being restored, SMRT noticed that the central automatic train supervision system, which manages the movement of driverless trains, became less responsive and it took longer than usual to resume normal train operations.

Mr Chee said there was a similar issue with the system in September 2024, and LTA and SMRT worked with manufacturer Alstom to develop a software patch to deal with the issue. The patch underwent extensive testing and was ready for deployment on Feb 15.

“Unfortunately, the incident happened a few days before the deployment date,” he added. SMRT and Alstom have since successfully deployed the patch.

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Train passengers on the Circle Line faced delays in their journeys on the morning of Feb 11 after a signalling fault caused power trips and trains to be stalled in eight stations.

PHOTO: ANNE-MARIE SIM/FACEBOOK

Mr Chee said the three incidents did not result in a prolonged stoppage of train services.

But he acknowledged that they occurred during the morning peak hours and affected a large number of commuters, increasing their waiting and travel times.

As at Feb 25, trains on the entire MRT network clocked an average of two million train-kilometres without service delays of at least five minutes, said Mr Chee.

He added that all MRT lines have hit the rail reliability target of at least one million train-km between such delays.

In response to a question by Mr Tan on improving communication with passengers during train incidents, the minister said LTA will continue to see how this can be fine-tuned, especially during peak hours.

“We take every incident on the MRT network seriously, because rail safety, reliability and resilience will always be our priorities,” Mr Chee said.
 
When a world class infrastructure maintenance is done by 3rd world rainmaker… it

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The Economist, Forbes and the IMF are not afraid to call a spade a spade.
S'pore has the 4th highest % of billionaires with family and personal
connections to the PAP.


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Charged with corruption?
No problem, can negotiate with the Attorney-General and pay money to CAD and MAS to drop corruption charges

Seatrium to pay $168m to Brazilian authorities, $73m to Singapore authorities to settle corruption case​

With this announcement, Seatrium said that Singapore authorities have concluded their joint investigations into potential offences.



With this announcement, Seatrium said that Singapore authorities have concluded their joint investigations into potential offences.

Jul 30, 2025

SINGAPORE - Offshore and marine specialist Seatrium said it has signed a leniency agreement with the authorities in Brazil in relation to a long-running corruption probe, known as Operation Car Wash.

It made the announcement on July 30, a day before the company is due to release its earnings for the first half of the 2025 financial year.

Under the terms of the leniency agreements with Brazil’s public prosecutor’s office and other authorities, Seatrium will pay a final settlement of around $168.4 million.

It was also required to pay a penalty of US$110 million (S$141.7 million) to Singapore authorities, under a deferred prosecution agreement (DPA) entered with the Attorney-General’s Chambers (AGC) in Singapore.

However, the AGC has agreed for up to a maximum of US$53 million of the payment to the Brazilian authorities to be credited against the financial penalty here. As such, the amount payable by Seatrium under the DPA will be US$57 million (S$73.3 million).

The DPA, signed on July 30 with Singapore authorities, is subject to approval by the Singapore High Court.

With this announcement, Seatrium said that the Monetary Authority of Singapore (MAS) and the Singapore police’s Commercial Affairs Department (CAD) have concluded their joint investigations into potential offences.

“No action will be taken against the company and/or its officers,” Seatrium said.

Seatrium shares fell 1.3 per cent, or three cents, to $2.35 as at the midday trading break on July 30, after the announcement.

This is after the company lifted a trading halt around 11.20am that it had called for before the market opened earlier.

Seatrium, which was then Sembcorp Marine, became implicated in Operation Car Wash, a major corruption scandal in Brazil, which involved allegations of paying bribes to secure contracts.

The company said in its July 30 statement that it has made provisions in its financial statements for the in-principle settlement payment and financial penalty.

“Following the finalised agreements with the Brazilian and Singapore authorities, the company has reversed a provision of $14 million in its financial statements for the financial period ended June 30 to take into account the finalised settlement payment and financial penalty, current exchange rates and other expenses,” it said.

“There is therefore no material impact on the net earnings and net tangible asset per share of the group for the financial year ending Dec 31.”

Seatrium added that it is “keen to move forward” and to ride on the energy market tailwinds to create transformative offshore energy solutions globally and ultimately deliver long-term sustainable growth.

“The company wishes to emphasise that it remains committed to the highest standards of corporate governance and business integrity, including zero-tolerance for fraud, bribery and corruption,” it said.

It added that it has put robust policies and procedures in place to instill the highest standards of discipline, ethics, and compliance across its global operations.
 

No link found between food poisoning cases and Total Defence Day ready-to-eat meals: SFA, MOH​

Results showed no foodborne pathogen and no food safety lapses were found after investigations.

Investigations showed no food-borne pathogen and no food safety lapses.

Apr 15, 2025,

SINGAPORE - There is no conclusive evidence linking the 187 cases of gastroenteritis in February during a Total Defence Exercise to the consumption of the ready-to-eat meals distributed as part of the exercise, investigations have shown.

The Singapore Food Agency and the Ministry of Health said in a joint statement on April 15: “This means that both food safety and clinical findings did not pinpoint the ready-to-eat (RTE) meals as the definitive cause of the incident.”

Meal samples, environmental swabs of equipment and contact surfaces at Sats’ premises, as well as stool samples from affected individuals and food handlers were taken for laboratory testing. Results showed no food-borne pathogen, according to the joint statement.


SFA’s investigation of the Sats’ manufacturing premises and processes also found no food safety lapses.

RTE meals were developed by Sats for the public’s consumption during national emergencies, and 150,000 such meals were to be distributed from Feb 15 to 28 as part of the 2025 Exercise SG Ready.


The 187 individuals afflicted with gastroenteritis made up 0.2 per cent of all participants during the Food Resilience Preparedness Programme, according to the statement.

There were 184 cases in schools, two in active ageing centres and one in a public agency, according to previous reports.

Distribution of the RTE meals was suspended on Feb 20 after the food poisoning incident. Over 100,000 meals had been delivered to more than 200 locations at the time.

Minister for Sustainability and the Environment Grace Fu said in Parliament on March 4 that SFA had inspected and found Sats’ premises to be clean on Jan 23, before the distribution of RTE meals. No food safety violations were detected.


SFA is working closely with Sats to review and strengthen the latter’s food production processes, according to the April 15 joint statement.

In a separate statement, Sats Food Solutions CEO Stanley Goh said the company was pleased that its RTE meals were cleared by the investigations, which had its production facilities, kitchen staff and operational practices “put through a comprehensive review to assess food safety across the production cycle”.

“We hope that the SFA and MOH findings offer additional assurance of the high food safety standards in place within Sats kitchens,” he said.

“We take this opportunity to emphasise and assure everyone that food safety is our highest priority.”
 

SMRT, a $3m fine, and how governance oversight went off the rails​

Beyond the headlines and the hefty penalty, the real lesson of SMRT’s costly EWL disruption lies in the slow, almost imperceptible drift of governance, where critical questions go unasked and the machinery of oversight lulls itself into complacency.

By Zat Astha / 8 Jun 2025
ST20240926_202458300206/pixdepot26/Brian Teo/Worker conducting recovery works on the damaged portions of the track near Ulu Pandan Depot at 11.30pm on September 26, 2024. Train disruptions on the EWL will last several more days, with SMRT aiming to restore services on Sept 30. ST PHOTO: BRIAN TEO


On 25 September 2024, a seemingly routine MRT journey on Singapore’s East–West Line derailed into one of its longest service disruptions when a high-temperature reading went unheeded, allowing an overheated axle box to detach and slam into track infrastructure.

The incident incapacitated a 2.55 km section of rail, forced a six‑day halt in services between Boon Lay and Queenstown, and inconvenienced an estimated 2.6 million commuters. In the fallout, the Land Transport Authority levied a hefty S$3 million fine on SMRT with regulators citing “operational and maintenance lapses” spanning delayed overhauls, unresolved system warnings, and fragmented oversight between operator and regulator.

The financial penalty collected will go to the Public Transport Fund to help lower-income families with their public transport expenditures.


The episode laid bare a pattern of weak governance: critical maintenance extensions were approved without documentation, recurring warning signals were habitually ignored, and coordination between operator and regulator broke down at decisive moments. For organisations that value resilience and public trust, this incident stands as a case study in how governance failures can multiply technical errors into system-wide crises.

Having studied the official investigation report by Ministry of Transport’s Transport Safety Investigation Bureau in detail, we have distilled the incident’s most instructive governance failures — lessons that extend far beyond railways, and that every organisation should heed before complacency becomes crisis.


Lack of regulatory oversight​

A fundamental governance lapse exposed by the incident is SMRT’s ability to extend critical maintenance intervals for train overhauls — sometimes by 25% or more beyond the manufacturer’s recommendations — without any binding requirement to seek regulatory approval or even to formally notify the relevant authority.


While the regulator was “aware” of SMRT’s internal waiver process, it exercised no active oversight or challenge function, effectively allowing SMRT to make risk-laden decisions in isolation.

This arrangement creates a systemic blind spot where the party most invested in operational continuity also unilaterally assesses, approves, and implements potentially risk-amplifying exceptions.

Such a model is inherently fragile: if SMRT’s internal risk assessments are flawed, or if organisational pressures incentivise extending maintenance cycles for cost or logistical reasons, there is no external check.


Governance best practice demands an arm’s-length, independent oversight of high-impact operational deviations — particularly in safety-critical sectors — yet this was notably absent until post-incident reforms forced a change.

Poor documentation and transparency​

Another glaring governance failure evident in the report is SMRT’s inability to provide full documentation supporting its most consequential maintenance waivers. Specifically, when the investigation team requested records for approvals of overhaul extensions — especially for those exceeding 10% — SMRT could not furnish comprehensive evidence for several intervals, and some assessment records were either omitted entirely or never created.

This absence of clear, auditable documentation not only undermines the traceability of critical decisions but also precludes meaningful retrospective analysis or accountability.

When a decision leads to an operational failure or safety breach, stakeholders must be able to reconstruct who authorised the deviation, on what grounds, and what risk mitigation measures (if any) were considered.

Poor documentation practices, especially when coupled with self-approval, create an opaque environment where learning is lost and mistakes can be repeated. Strong governance cultures require not just records of what was done, but also why — embedding a discipline of transparency into every risk-related decision.

Deviation without clear rationale​

The report highlights that SMRT routinely deviated from the maintenance schedule and inspection intervals recommended by the train manufacturer.

In some cases, inspections and overhauls were delayed or conducted less frequently than prescribed; in others, steps recommended by the manufacturer were simply omitted. More troublingly, SMRT could not produce records explaining the rationale for these departures from established technical standards.

While operational adaptation is sometimes necessary, robust governance requires that any deviation from a recognised standard is both justified and documented — ideally with supporting data, risk analysis, and an explicit evaluation of potential impacts.

By contrast, undocumented and unreviewed departures not only dilute the integrity of safety and quality regimes, but also introduce organisational amnesia: no one, years later, can explain why something was done or defend the reasoning behind it. In safety-critical industries, such casual divergence from expert guidelines is a recipe for accumulated risk and eventual crisis.

Failure of detection and response processes​

A deeper governance issue underscored by this incident is the failure to establish robust systems for detecting, escalating, and responding to early warning signals — especially when those signals are ambiguous or plagued by technical issues.

The Hotbox system, installed to flag potentially catastrophic axle overheating, repeatedly issued “Null ID” warnings, which operational staff habitually dismissed as false alarms due to a lack of clear protocols or actionable guidance.

This normalisation of technical glitches, combined with inadequate training and a lack of follow-through on persistent feedback, meant that genuine safety alerts could be — and were — overlooked. The failure to resolve recurring detection system faults reflects weak internal escalation processes and an organisational culture that does not sufficiently prioritise closure of operational anomalies.

In essence, SMRT’s detection and response loop was broken: system faults were tolerated rather than fixed, and staff learned to ignore rather than investigate. This passive approach undermines the very purpose of safety systems and leaves organisations exposed to preventable disasters.

Desensitisation and poor safety culture​

A less tangible but equally pernicious governance issue is the gradual desensitisation of staff to alarms and system anomalies — a direct result of unresolved technical faults and weak safety culture.

Over time, as Null ID errors became routine and went unaddressed by management, frontline staff began to treat these warnings as background noise, discounting or ignoring alerts that should have triggered immediate action. This phenomenon — sometimes described as “alarm fatigue” — signals a breakdown in the psychological contract between workers and their organisation, in which vigilance is neither valued nor enforced.

A culture where it is acceptable to “work around” warning systems, or to assume that errors are harmless without investigation, inevitably erodes collective attention to risk. Effective governance demands an environment where all anomalies are treated seriously until proven benign, and where systemic patterns of failure prompt urgent, organisation-wide learning and remediation.

Regulator’s passive role​

The investigation also exposes a broader governance weakness in the passive, after-the-fact posture adopted by the regulatory authority.

Despite being aware of SMRT’s ad hoc extension of overhaul intervals and other maintenance deviations, the regulator imposed no requirements for prior notification, audit, or approval — effectively rubber-stamping SMRT’s risk assessments by omission.

Meaningful reforms, including mandatory reporting of overhaul extensions, enhanced documentation, and strengthened audit processes, only emerged after the incident — an all-too-familiar pattern of “governance by hindsight.”

This reactive approach betrays a lack of anticipatory oversight and undermines the principle of the regulator as a proactive guardian of public safety and service reliability. Organisations in high-stakes sectors must embed governance practices that prioritise early intervention, scenario planning, and continuous oversight — not wait for crises to force improvement.

When regulators act only after failure, public trust and organisational resilience both suffer.

Lack of industry-wide learning​

Beyond the internal failings of SMRT and regulator, the report also highlights a sector-wide governance gap: the lack of structured, compulsory feedback loops between manufacturers, operators, and authorities after trains are delivered and in service.

The investigation notes that manufacturers are generally not obliged to inform operators or regulators about emerging technical or safety concerns discovered post-delivery, and collaboration remains voluntary and inconsistent.

This siloed approach impedes system-wide learning and the early identification of failure modes that may recur across different contexts or fleets. In sectors where latent design or operational flaws can have catastrophic consequences, strong governance requires mandatory, routine sharing of safety and reliability data across all stakeholders — manufacturers, operators, and regulators alike.

Failure to do so turns every operator into an isolated experiment, increases the likelihood of repeat incidents, and wastes opportunities for pre-emptive action and sector-wide improvement.

Pre-existing gaps​

Ironically, perhaps the most telling evidence of governance shortcomings is the flurry of corrective actions taken only after the incident had already caused substantial operational, financial, and reputational damage.

These included immediate fleet-wide overhauls, rectification of the Hotbox system’s identification failures, procedural changes to reporting and escalation, and newly mandated regulator audits and approvals.

None of these interventions were in place beforehand — despite evidence of their necessity — which highlights a persistent gap between documented policy and lived practice. Effective governance is not merely a matter of ticking boxes or conducting investigations after the fact; it is about maintaining a continuous, self-critical vigilance that surfaces and addresses emerging risks before they metastasise into full-blown crises.

The incident thus stands as a case study in the perils of complacency, delayed learning, and the dangers of relying on reactive rather than proactive systems of oversight and improvement.


ST20240925-202429600697-Lim Yaohui-pixtrain25/Passengers queueing for bus bridging service outside The Metropolis near Exit D of Buona Vista MRT station at 10.23pm on Sept 25, 2024.There will be no regular train services between Jurong East and Buona Vista on Sept 26, marking a second day of disruptions for commuters on the East-West Line (EWL). This comes after a power fault halted normal passenger service between Boon Lay and Queenstown stations for most of the day on Sept 25.The Land Transport Authority (LTA) said in a statement late on Sept 25 that engineers from LTA and train operator SMRT started recovery works in the afternoon, and will continue into the night.(ST PHOTO: LIM YAOHUI)

ST PHOTO: LIM YAOHUI

The Straits Times
Ultimately, the East–West Line incident is not simply a story of mechanical failure or regulatory misstep; it is a meditation on what happens when the habits of organisations drift quietly away from their own best intentions.

At its core, governance is not a collection of policies or the performance of compliance for its own sake. It is a culture — an ethic — that must be renewed with every decision, every documented rationale, every moment when convenience beckons louder than care.

Organisations do not falter all at once. They accumulate risk by degrees: a missing record here, a disregarded warning there, a waiver approved with no scrutiny because it is easier not to ask difficult questions. What happened on the tracks that September morning was not the work of one individual or one bad day, but the logical end of patterns that had become invisible through routine.

If there is a lesson to be drawn, it is that governance is a living practice, not a checklist to be filed and forgotten. The most resilient organisations are those that interrogate their own decisions, welcome discomfort, and preserve the thread of memory and reasoning even as teams and eras change. They understand that trust — public, internal, and regulatory — is not a fixed asset, but a resource renewed only through the daily, often unseen, discipline of doing things right even when it is inconvenient.

In studying this incident, we are reminded that the consequences of neglect are never just operational — they ripple through public confidence, institutional culture, and the shared sense of what it means to act with responsibility.

The real work of governance is unglamorous, difficult, and ongoing. It is the work of building systems that are honest with themselves, alert to the smallest signals, and humble enough to know that the gravest danger is not the crisis we see coming, but the one we quietly allow.
 
An honest govt does not fear have an Opposition as a check and balance on their power. Only a corrupt govt fears scrutiny and demands to be its own check and balance. After all, power corrupts and absolute power corrupts absolutely.
 
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