Court to hear AHPETC case appeal on Aug 3
TODAY file photo
SINGAPORE — The hearing for the Ministry of National Development’s (MND) appeal against a High Court decision not to appoint independent accountants for Aljunied-Hougang-Punggol East Town Council (AHPETC) has been brought forward at the ministry’s request. Subject to the court registry’s confirmation, the court will hear the appeal on Aug 3.
In a hearing before Chief Justice Sundaresh Menon today (June 4), both parties agreed to the application by the MND. In response to queries, the ministry said the matter needs to be resolved quickly, as public interest is at stake.
“We need the court to determine as soon as possible the steps that AHPETC ought to take to remedy its serious breaches. At stake are important public-interest issues concerning public governance and accountability of a statutory body that collects money from residents and receives government grants,” said an MND spokesperson.
She noted that the Workers’ Party-run town council is in “urgent need” of fresh service and conservancy charges (S&CC) grants to deliver essential services to its residents and meet its legal obligations. The MND wants to release the grants immediately, but can do so only with safeguards, she said.
The MND has withheld two years of government grants, totalling about S$14 million, to AHPETC as it has said it has no guarantee the money would be used properly. Last October, the town council resisted its offer of half the grants, subject to conditions.
In March, the ministry went to court to have independent accountants appointed to oversee the disbursement of government grants to the town council and, with the court’s permission, take appropriate action to recover losses suffered by AHPETC and residents. High Court judge Quentin Loh dismissed this application last week, ruling that the ministry had not established the legal bases for such an order. However, he noted that the Housing and Development Board and residents could seek legal remedies.
Today, the MND also said there is an urgent need for independent accountants to be appointed with powers of inquiry and recovery, given the “serious questions” raised about payments AHPETC had made to related parties — a reference to the town council’s managing agent firms, which are owned by some key office-holders in the town council.
The MND and AHPETC will have until June 22 and July 16 respectively to submit their cases to the Court of Appeal. Speaking to reporters, AHPETC and WP chairman Sylvia Lim said there is “no need for the MND to come to court” to resolve the issue and the town council wants to “move on from this”.
In her affidavit, she also addressed Justice Loh’s comment that he found it “curious” that she had told Parliament the town council has been making transfers for FY14/15, without declaring that it had been tardy in doing so.
“I have noted the learned Judge’s views, which I respectfully disagree with,” Ms Lim said. Explaining that MND had already been told that AHPETC would not make its quarterly transfer for the first quarter of FY14/15 in time due to the withholding of grants, Ms Lim added: “A perusal of the parliamentary debates on the AGO Report in February 2015 will show the context of the statements.”
She also disagreed with Justice Loh’s comment that AHPETC had ignored its sinking-fund obligations. Nonetheless, the judge was still of the view that the grants-in-aid be disbursed as soon as possible, she noted. “It should also be emphasised that the proceedings taken out below were by way of an Originating Summons, as opposed to a writ action where the Court makes findings of fact after cross-examination. The learned Judge relied mainly on the findings of other parties, such as the AGO, which had long been made public and debated,” she said.
