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Chitchat The Beginning Of The End For WP Will Start On Friday Oct 5! Sayonara, WP!

JohnTan

Alfrescian (InfP)
Generous Asset
If oppie low cannot pay back what he owes to the TC, can the womenfolk in his family be seized and sold into slavery or debt bondage until the debt is repaid?
 

JohnTan

Alfrescian (InfP)
Generous Asset
Pay us back $2.8 million, oppies!! It's the residents' blood-and-sweat money!!!

nz-town-061018.jpg


The Aljunied-Hougang Town Council (AHTC) had two architects on its panel but engaged the higher-priced firm for seven out of 10 construction projects.

This caused it to pay up to $2.8 million more than it would have had to if it had appointed the other, lower-priced architect.

The sum is among a number of "improper payments" that are at the centre of a court case involving three Workers' Party (WP) MPs and five other defendants, who are being sued for allegedly breaching their fiduciary duties to the town council.

With regard to the $2.8 million, compensation is being sought from all eight defendants, including former WP chief Low Thia Khiang, party chairman Sylvia Lim and current party leader Pritam Singh.

The money could have been saved if the seven projects had been awarded to lower-priced Design Metabolist instead of LST Architects, argued the plaintiffs AHTC and Pasir Ris-Punggol Town Council yesterday, on the first day of the trial over two multimillion-dollar civil lawsuits.

https://www.straitstimes.com/singapore/engaging-higher-priced-architect-led-to-ahtc-paying-28m-more
 

Hypocrite-The

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SINGAPOREAHTC trial: Defendants acted ‘in good faith’ at all times, say lawyers in closing submissions
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AHTC trial: Defendants acted ‘in good faith’ at all times, say lawyers in closing submissions




SingaporeAHTC trial: Defendants acted ‘in good faith’ at all times, say lawyers in closing submissions
image: data:image/gif;base64,R0lGODlhAQABAAAAACH5BAEKAAEALAAAAAABAAEAAAICTAEAOw==
Aljunied-Hougang Town Council. (File photo: Ngau Kai Yan)
By Lianne Chia
21 Jan 2019 08:24PM(Updated: 21 Jan 2019 08:41PM)
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SINGAPORE: Lawyers for defendants in the landmark Aljunied-Hougang Town Council (AHTC) trial filed their closing submissions on Friday (Jan 18), reiterating their stance that the town councillors – including three Workers’ Party Members of Parliament – acted in good faith at all material times, and in execution of the Town Council Act (TCA) and Town Councils Financial Rules (TCFR).
In the closing submissions which Channel NewsAsia obtained on Monday (Jan 21), lawyers from Tan Rajah & Cheah also said that the town councillors owe only statutory duties which they have acted in accordance with.

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The firm represents the three WP MPs Low Thia Khiang, Sylvia Lim and Pritam Singh, as well as former AHTC town councillors Chua Zhi Hon and Kenneth Foo. They are five of eight defendants being sued by AHTC and Pasir Ris-Punggol Town Council (PRPTC) over alleged improper payments involving millions of dollars.
They are also accused of breaching their fiduciary duties in the appointment of town council managing agent FM Solutions and Services (FMSS).
Other defendants involved in the suit are director and shareholder of FMSS How Weng Fan, and her late husband FMSS owner Danny Loh. The last defendant is FMSS itself.
READ: AHTC trial - Managing agent enjoyed 300 per cent profit increase as town council's finances suffered, say lawyers

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In the plaintiffs’ closing submissions, AHTC’s lawyers from Shook Lin and Bok called for the court to allow its claims of S$33.7 million from the eight defendants, with costs.
They reiterated that the defendants breached their duties of loyalty, fidelity and of good faith, and in particular, Mr Low and Ms Lim had “acted in bad faith in their dealings with FMSS”.
But lawyers for the first five defendants contended that while there are statutory duties owed by the town councillors in accordance with the TCA, the statutory duties owed “does not give rise to a fiduciary obligation” unless Parliament intended otherwise.
It would also be “unduly onerous” to saddle resident volunteers such as Mr Chua and Mr Foo, they added, with fiduciary duties, as they are laymen volunteering their services “for the common good”, and were only paid an honorarium of S$300 each a month.
Meanwhile, lawyers for the three other defendants also contended in their closing submissions that Mr Loh and Ms How’s appointments were for administrative purposes and did not carry fiduciary duties.
READ: What makes a "responsible" town councillor? Low Thia Kiang, PRPTC lawyer cross swords at AHTC trial

The lawyers from Netto & Magin LLC pointed out that Mr Loh and Ms How were not members of the town council and did not have voting rights or decision-making powers. Furthermore, they added, as Mr Loh and Ms How were not town councillors, Section 15 of the TCA, which restricts disclosure of interest to members of the town council, does not apply to them.
Nonetheless, they said, the two had made disclosures of their interest in FMSS to the plaintiffs.
“Mr Loh and Ms How had at all material times acted honestly and in good faith and had fully disclosed their interest in FMSS to the town councillors of AHTC,” they wrote.
“INCONSISTENT AND UNSUSTAINABLE POSITIONS” OF KPMG, PWC WITNESSES
The lawyers for the first five defendants also stressed that the appointments of FMSS, its service provider FMSI, the third-party contractors as well as the payments made to them were done in accordance with the processes in AHTC and with the consent of the town councillors.
They added that there was “nothing improper” about these appointments and payments.
They also took issue with the witnesses called by AHTC and PRPTC, pointing out that the plaintiffs’ only basis for their claims are the reports by audit firms KPMG and Pricewaterhousecoopers (PwC), and that their sole witnesses, KPMG’s executive director Owen Hawkes and PwC partner Goh Thien Phong, have “no personal knowledge of the facts and circumstances existing at the material time” when the town councillors made their decisions and carried out the actions which are being impugned in the suits.
“It is submitted that little weight should be accorded to the evidence of Mr Hawkes and Mr Goh given the inconsistent and unsustainable positions taken in respect of their roles in these proceedings,” the lawyers wrote.
Mr Hawkes, the lawyers said, was not an independent expert witness, but a factual witness called in support of AHTC’s case. Hence, they said, his evidence was therefore “partisan and ought not to be treated otherwise”.
As for Mr Goh, lawyers said it is apparent that he had played the role of not just an expert but as a consultant assisting in PRPTC’s case.
The lawyers for the three other defendants made a similar point, describing the audit reports as “inaccurate” and “prejudicial”.
READ: Town council performance has improved despite "many challenges", says AHTC
“The evidence presented provided an outsider’s perspective of what had taken place within AHTC over the span of four years that involved hundreds of thousands of documents, many people and physical events that cannot be revisited,” they wrote.
“The witnesses of both plaintiffs attempted to testify on matters which required personal knowledge and their testimonies were scanty and lacked credibility.”
DEFENDANTS SUBJECTED TO STANDARDS OF “PERFECT HINDSIGHT”
Lawyers for the first five defendants also submitted that in the course of cross-examination, the plaintiffs had attempted to build their case by subjecting the defendants to the “standards of perfect hindsight” using hypothetical scenarios that, they wrote, “did not take into consideration the actual circumstances that the town councillors faced at the time”.
They pointed out that the plaintiffs did not call any factual witnesses to challenge the town councillors’ evidence of the circumstances that they faced almost immediately after they were elected following the 2011 General Elections.
They pointed out that the plaintiff’s claims require the court to assess their decisions as to the appointments and payments made by AHTC with respect to FMSS, FMSI and the various third parties.
“In other words, the Honourable Court is being asked by the plaintiffs to second-guess the decisions of the town councillors,” they wrote. “It is submitted that neither the accountants nor the Honourable Court is in a position to state what the decisions should have been.”
Parties will have up to the middle of next month to file replies to each other’s submissions, before making oral submissions in person in March.
Source: CNA/lc
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Read more at https://www.channelnewsasia.com/new...ed-in-good-faith-closing-submissions-11149048
 

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AHTC trial: Managing agent 'enjoyed' 300% profit increase as town council's finances suffered, say lawyers




SingaporeAHTC trial: Managing agent 'enjoyed' 300% profit increase as town council's finances suffered, say lawyers
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(From left) The Workers' Party's Pritam Singh, Low Thia Khiang and Sylvia Lim.
By Lydia Lam
21 Jan 2019 08:25PM(Updated: 21 Jan 2019 09:11PM)
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SINGAPORE: Lawyers for the Aljunied-Hougang Town Council (AHTC) reminded the court how the town council's former managing agent enjoyed "extraordinary profits" while AHTC's financial position was "severely damaged" in their closing submissions for the landmark trial.

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The Shook Lin & Bok lawyers called for the court to allow its claims of S$33.7 million from the eight defendants, with costs, in the documents filed on Friday (Jan 18) and seen by Channel NewsAsia on Monday.

Workers' Party (WP) Members of Parliament Sylvia Lim, Low Thia Khiang and Pritam Singh were taken to court along with former AHTC town councillors Kenneth Foo and Chua Zhi Hon in October last year for allegedly breaching their fiduciary duties in appointing FM Solutions and Services (FMSS) as managing agent.
FMSS was helmed by Ms How and her late husband Mr Loh. Both of them also had roles in the town council, and are accused of dishonestly assisting in the breaches of fiduciary duties.
READ: Defendants acted ‘in good faith’ at all times, say lawyers in closing submissions

READ: AHTC trial wraps up after 17 days, with last defence witnesses on the stand


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Observers have previously said that should the defendants not be able to pay damages, if any, AHTC could commence bankruptcy proceedings against them, and the WP MPs may lose their parliamentary seats.
Under the Singapore Constitution, an undischarged bankrupt cannot be a Member of Parliament and will not be allowed to contest in any parliamentary election.
The WP MPs involved in the suit had successfully raised a million dollars in a few days in October after turning to the public for help in legal fees.
READ: Workers' Party MPs close fundraising appeal after raising more than S$1m for legal fees

TOWN COUNCIL ACTING AT BEHEST OF MR LOW, MS LIM: LAWYERS
In their closing submissions numbering 156 pages, AHTC's lawyers reiterated their arguments that the defendants did not act in good faith and breached their duties of loyalty and fidelity by appointing FMSS as agent without a tender for its first managing agent contract.
In particular, the town council’s lawyers said Mr Low and Ms Lim "acted in bad faith in their dealings with FMSS", and that there was "an alarming picture of a lack of independent thought on the part of the town councillors".
"The town council was in effect just going through the motions and acting at the behest of Sylvia Lim and Low Thia Khiang," wrote the lawyers.
The lawyers argued that Ms Lim and Mr Low breached their duties in several ways, including: Acting in the interests of the Workers' Party and its supporters and not in the best interests of AHTC; deciding to appoint FMSS without a tender before performing due diligence on the existing managing agent; and failing to disclose the shareholding of FMSS before awarding it the second managing agent contract.
READ: What makes a ‘responsible’ town councillor? Low Thia Khiang, PRPTC lawyer cross swords at AHTC trial
The lawyers also attacked the defence put up by the defendants in their submissions, saying that the argument that they acted in good faith "cannot apply".
"Sylvia Lim, Low Thia Khiang, Danny Loh and How Weng Fan acted recklessly, and therefore not in good faith, and/or were wilfully blind in their dealings with FMSS," said the lawyers.
"A particularly disturbing consequence of the appointment of FMSS, and the fact that Ms How, Mr Loh and FMSS were effectively given carte blanche over AHTC’s payment process, was that FMSS enjoyed extraordinary profits (an increase of over 300 per cent) in the period between 2011 and 2015," wrote AHTC’s lawyers.
"In contrast, AHTC’s financial position was severely damaged and Mr Loh himself declared in Sep 27, 2014 that 'the town council is now bankrupt and in deep financial trouble'."
READ: An 'egregious, cavalier misuse of public funds': Town council lawyers rip into Workers' Party leaders
Turning to FMSS, the lawyers set out their case that FMSS dishonestly assisted in the breach of fiduciary duties by entering into contracts "with full knowledge of the conflicts of interests in play".
It submitted that the contracts FMSS signed with the town council "are void in public law", and called the court to disregard FMSS' counterclaim against AHTC.
FMSS is now claiming protection under its contract with AHTC, but the town council's lawyers pointed out that they had not pleaded this counterclaim in court and "there would be no contract at all" if AHTC successfully rescinds the FMSS contracts as void in public law.
SYLVA LIM AN EVASIVE WITNESS: AHTC'S LAWYERS
The town council’s lawyers, in their submissions, paid particular attention to Ms Lim, alleging that she was “an evasive witness as she will not hesitate to concoct evidence and/or be evasive in order to avoid making admissions under oath”.
"Sylvia Lim’s cross-examination also revealed that previous statements she made in Parliament were, at best, inaccurate and, at worst, untruthful," submitted the lawyers. "Therefore, negative inferences should be drawn in respect of her motivations as regards the award of the FMSS and/or FMSI contracts."
READ: FMSS’ How Weng Fan wanted 'hopeless chairman' Sylvia Lim replaced, reveals Davinder Singh
The lawyers charged that Ms Lim "fabricated stories", "concocted evidence" and was "extremely evasive", “constantly attempting to side-step questions when confronted with the truth and the apparent unsustainability of her original answer".
"AHTC submits that the inference to be drawn from this recurrent pattern of evasiveness is that Sylvia Lim is attempting to cover up her failings and the failings of the elected town councillors," wrote the lawyers.
Parties will have up to the middle of next month to file replies to each other's submissions, before making oral submissions in March.
Source: CNA/ll(hm)
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