AHTC case: Court of Appeal finds Sylvia Lim, Low Thia Khiang liable for negligence; Pritam Singh cleared

The Court of Appeal has cleared Workers' Party (WP) chief Pritam Singh, but found WP chairman Sylvia Lim and former party secretary-general Low Thia Khiang liable for negligence in the Aljunied-Hougang Town Council (AHTC) payments process.

These findings, released on Friday (July 7), mean that Lim and Low might need to pay damages, CNA reported. The exact amount will be determined after future hearings.

This is the latest development in a long-running trial over the alleged misuse of $33.7 million of town council funds by the WP leaders and town councillors who helmed AHTC between 2011 and 2015.

The court also ruled that the town councillors and employees are liable to Sengkang Town Council for negligence in allowing control failures to exist in the system.

The absence of safeguards, coupled with the involvement of conflicted parties - managing agents working for AHTC who also held positions in AHTC - had created a risk of overpayment.

WP leaders sued over improper payments

In 2017, an independent panel appointed by AHTC, and the People's Action Party-run Pasir Ris-Punggol Town Council (PRPTC) sued Lim, Pritam and Low over $33 million in improper payments made under their watch.

This came after the WP leaders awarded a contract without a tender to FMSS after the party won Aljunied GRC in 2011.

The company was set up by WP supporters How Weng Fan and her late husband, Danny Loh. How was also AHTC's deputy secretary at that time.

Last November, the Court of Appeal ruled that Lim, Low and Singh were liable for "gross negligence" after finding that the trio knew about the conflict of interests but did not address them.

On Friday, Chief Justice Sundaresh Menon, who delivered the judgement, said that then-AHTC councillors Chua Zhi Hon and Kenneth Foo, along with Singh, were cleared over the payments process on a legal technicality.

But Lim and Low, as well as FMSS founders How and the late Loh were found liable for negligence.

The court also upheld its earlier finding that Lim was liable for neglect after she failed to prove that she had acted in good faith by choosing not to renew existing contracts at significantly cheaper rates.

The appeals were heard by a five-judge panel comprising the Chief Justice, Justice Judith Prakash, Justice Tay Yong Kwang, Justice Woo Bih Li and Justice Andrew Phang.

ALSO READ: 'Gross negligence': WP leaders knew of conflicts of interest but didn't address them, rules Court of Appeal

chingshijie@asiaone.com