DPM Heng to table motion calling on AHTC to require WP’s Lim, Low to recuse themselves from finance matters

SINGAPORE — Deputy Prime Minister Heng Swee Keat will be introducing a motion in Parliament next Tuesday (Nov 5) that will call on Aljunied-Hougang Town Council (AHTC) to require Workers’ Party (WP) leaders Sylvia Lim and Low Thia Khiang to “recuse themselves” from all financial matters related to AHTC.

In a notice paper sent to Members of Parliament (MPs) which was seen by TODAY, the motion would “affirm the vital importance of MPs maintaining high standards of integrity and accountability”.

The parliamentary motion introduced by Mr Heng, who is also Finance Minister, comes after High Court Judge Kannan Ramesh called out the WP MPs for dishonest and improper conduct, in a verdict delivered after a year-long trial.

Besides reiterating the judgment made that Ms Lim and Mr Low “acted dishonestly” and were “in breach of their fiduciary duties”, the motion also added that their conduct “lacked integrity and candour”.

“Ms Lim and Mr Low were fully aware that their conduct was of questionable legality,” read the motion.

It also noted that Ms Lim remains the vice-chairman of AHTC and Mr Low an elected member of the town council.

Last month, both MPs, as well as WP chief Pritam Singh, were found liable for damages suffered by the AHTC and Pasir Ris-Punggol Town Council (PRPTC), as part of the High Court ruling.

Ms Lim and Mr Low, in particular, were said to have breached their fiduciary duties to the AHTC as they had failed to act in its best interests.

The judgment is the latest development in a saga which has been going on for over six years and followed a 17-day trial that took place in October last year.

Among the many points of contention, the main one involved the appointment of former managing agent of the town council, FM Solutions and Services (FMSS), without tender by Ms Lim, Mr Low and Mr Singh.

FMSS was brought in by the WP MPs after the 2011 General Election to provide estate management services, and was owned by the late Danny Loh and his wife How Weng Fan, who were later revealed to be the secretary and general manager of the town council respectively.

AHTC sought to claim S$33.7 million of “improper” payments made to FMSS and contractor FM Solutions and Integrated Services.

PRPTC also sued the WP MPs to recover any losses allegedly incurred back when the WP-led town council managed the Punggol East constituency.

The amount claimed against the defendants exceeds S$33.7 million, but the actual sum that they eventually have to pay will be decided only in the next phase of the trial.

If the WP MPs cannot pay, they could be deemed bankrupt and lose their parliamentary seats, and, in those circumstances, would not be able to contest the next General Election.