Workers' Party MPs will contest lawsuit, acted 'in good faith'
The Workers’ Party (WP) has denied allegations that they acted in breach of fiduciary duties and will contest the lawsuit against the Aljunied-Hougang Town Council.
In a statement to the media on Wednesday (26 July), the WP said its MPs “acted in good faith and in the best interests of the Town Council and our residents”.
Aljunied-Hougang Town Council (AHTC) is claiming up to $33 million from the town councillors and AHTC’s former managing agent.
It alleged that payments made to the former managing agent FM Solutions and Services (FMSS) and service provider FM Solutions and Integrated Services (FMSI) are invalid as the town councillors acted in a breach of fiduciary duties, reported a Straits Times article on 26 July.
The WP confirmed that it received the Statement of Claim filed by the Aljunied-Hougang Town Council against town council chairman and WP chief Low Thia Khiang, vice-chairman Sylvia Lim and Pritam Singh.
The joint statement by Low, Lim and Singh said, “In the suit against us, amongst other things, it is alleged that: (a) We have acted in breach of our fiduciary duties and duties of care and skill owed to AHTC, (b) We set up a faulty system which allowed the appointment of FMSS and made it possible for FMSS and/or their officers to benefit themselves, (c) We entered into contracts with architects in breach of duties owed to AHTC.
“Our reply to all these allegations is NO.”
They clarified that they were asked to give an account of profits made from appointing FMSS or pay damages not less than $1.25 million. “We have not benefitted a single cent,” they said.
Lim and Singh were also asked to pay damages of $2.8 million for the wrongful appointment of architects, they said.
Low, Lim and Singh said they would provide more details during the course of the proceedings “so that all concerned will be clearer on the issues and why we made the decisions and acted as we did”.