Workers' Party town councillors face lawsuit over alleged $33 million improper payments

An independent panel appointed by the Aljunied-Hougang Town Council (AHTC) has filed a lawsuit against three Workers’ Party (WP) MPs, AHTC’s former managing agent, and its service provider over alleged improper payments of up to $33,717,535.

AHTC alleged that payments made to the former managing agent FM Solutions and Services (FMSS) and service provider FM Solutions and Integrated Services (FMSI) were invalid as the town councillors had acted in breach of fiduciary duties, according to media reports on Wednesday (26 July).

The town councillors who had been taken to court are WP chief Low Thia Khiang, chairman Sylvia Lim and assistant secretary-general Pritam Singh.

If the defendants are unable to account for the payments, AHTC wants “equitable compensation”.

The independent panel was appointed in February and has the authority to take legal action over the alleged improper payments, following a report by audit firm KPMG on the matter. Chaired by Senior Counsel Philip Jeyaretnam, the panel members include Senior Counsel N. Sreenivasan and KPMG managing partner Ong Pang Thye.

Separately, HDB said it has been given the statement of claim filed by the panel. HDB said the claim document outlines “serious allegations of misconduct” including Low and Lim allegedly misleading AHTC and failing to justify a waiver of tender and the appointment of FMSS.

The Workers’ Party said it would respond after it had studied the claim.

Note: This story has been updated to reflect that AHTC is alleging payments of up to $33.7 million that were made to FMSS and FMSI were invalid.


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