SINGAPORE: The Court of Appeal on Wednesday (Nov 9) allowed part of the appeals brought about by the Workers' Party (WP) leaders and related parties in the Aljunied-Hougang Town Council (AHTC) case.
The court found that the members and senior employees of AHTC do not owe the town council fiduciary or equitable duties.
A fiduciary is a person who acts for or on behalf of another, in a legal or practical relationship of trust, such as one between a trustee or beneficiary.
The WP Members of Parliament and AHTC councillors had been accused of breaching their fiduciary duties in the appointment of town council managing agent FM Solutions & Services (FMSS). FMSS was led by Ms How Weng Fan, WP stalwart Low Thia Khiang's long-time colleague from Hougang Town Council.
As a result of this appointment, they allegedly allowed "improper" payments of more than S$33 million to FMSS, its service provider FM Solutions & Integrated Services (FMSI) and third parties.
In its decision released on Wednesday, the court cited Section 52 of the Town Councils Act, where a person acting for a town council is immunised from personal liability.
However, the court found that the members and senior employees are liable to AHTC for negligence in certain respects relating to the payments process.
"The town councillors and employees were grossly negligent in implementing the payments process, as the involvement of conflicted persons for payments to FMSS and FMSI created an inherent risk of overpayment in the absence of safeguards," said the court in a case summary.
For this, they may be liable for damages.
On the matter of waiving the tender and awarding the first contract for managing agent services to FMSS, the town councillors had acted in good faith, said Chief Justice Sundaresh Menon.
The judgment found that several members of the town council had acted in good faith in various aspects. This was a key argument during the trial.
Continue reading...
The court found that the members and senior employees of AHTC do not owe the town council fiduciary or equitable duties.
A fiduciary is a person who acts for or on behalf of another, in a legal or practical relationship of trust, such as one between a trustee or beneficiary.
The WP Members of Parliament and AHTC councillors had been accused of breaching their fiduciary duties in the appointment of town council managing agent FM Solutions & Services (FMSS). FMSS was led by Ms How Weng Fan, WP stalwart Low Thia Khiang's long-time colleague from Hougang Town Council.
As a result of this appointment, they allegedly allowed "improper" payments of more than S$33 million to FMSS, its service provider FM Solutions & Integrated Services (FMSI) and third parties.
In its decision released on Wednesday, the court cited Section 52 of the Town Councils Act, where a person acting for a town council is immunised from personal liability.
However, the court found that the members and senior employees are liable to AHTC for negligence in certain respects relating to the payments process.
"The town councillors and employees were grossly negligent in implementing the payments process, as the involvement of conflicted persons for payments to FMSS and FMSI created an inherent risk of overpayment in the absence of safeguards," said the court in a case summary.
For this, they may be liable for damages.
On the matter of waiving the tender and awarding the first contract for managing agent services to FMSS, the town councillors had acted in good faith, said Chief Justice Sundaresh Menon.
The judgment found that several members of the town council had acted in good faith in various aspects. This was a key argument during the trial.
Continue reading...