14/10/2019

AHTC Saga: The real monkey in the room

Update 18 Jan 2020: AHTC to remove Sylvia Lim and Low Thia Khiang from financial matters so to direct its energies towards fulfilling its core functions

Aljunied-Hougang Town Council has removed Ms Sylvia Lim and Mr Low Thia Khiang — both Members of Parliament for Aljunied GRC — from financial oversight of the town council, with effect from Thursday (16 January) after receiving a rectification order from the the Minister of National Development, Lawrence Wong on 3 January 2020.

In a statement published on the town council’s website, AHTC voiced its surprise that the Minister Wong is invoking Section 43D(2) of the Town Councils Act (TCA) to compel the Town Council to comply with the Ministry’s orders. Under the section, the Minister, may by order given in writing to the Town Council, require the directed Town Council:

  • to take specified remedial action to address the deficiencies within a specified period and to report to the Minister, at the end of the specified period, on the action taken to give effect to the requirement;
  • or to take specified action to correct the irregularity or to guard against the recurrence of irregularities (or both) at the end of the specified period.


If a Town Council fails to comply with a rectification order by the compliance date, the Town Council shall be guilty of an offence and shall be liable on conviction to a fine not exceeding $5,000 and in the case of a continuing offence, to a further fine not exceeding $50 for every day or part of a day during which the offence continues after conviction.

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The AHTC trial
The real monkey in the room has always been: Why are political parties in charge of running town councils? Is this not the job of the HDB? Should not everything be thrown back at the HDB?

With Justice Kannan Ramesh having found Workers’ Party leaders Low Thia Khiang and Sylvia Lim guilty of breaching their fiduciary duties with the Aljunied-Hougang Town Council, the next stages in the lawsuit saga will be the outcome of appeal and decisions on the amounts to be recovered from all parties involved. These are the legal aspects of the case. But the AHTC trial has never been just about the law. The whole thing can also be seen as political. There are a number of takeaways from the trial – the repercussions of which will affect the forthcoming general elections and the political scene in Singapore.


The judge said the town councillor is like the director of a company or members of a strata development management company.  The councillor has to discharge his fiduciary obligations – even if he is just a volunteer and paid an honorarium of only $300 a month.  Justice Ramesh said: “In fact, the analysis which I have adopted means that the fiduciary relationship between town councillors and their town council is entirely distinct from the political relationship between town councillors and their constituents.”


Put simply, politics is politics and duty is duty – whether or not discharging the duty is done, as the WP put it, in good faith, presumably referring to the lapses. Good faith or not, Justice Ramesh was scathing in his description of the WP leaders who, he said, put their own political interests over that of AHTC. The WP politicians will appeal the findings. Are Singaporeans satisfied with the town council system?


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People’s Voice Lim Tean in agreement with veteran architect that MPs are not “estate managers”
Tay Kheng Soon calls for a separate full-time manager to handle daily tasks of a constituency

People’s Voice founding leader Lim Tean took to his Facebook on Monday (18 November) to pen his agreement with veteran architect Tay Kheng Soon who stated that the role of a Member of Parliament (MP) is to be a “legislator in Parliament to enact laws” and not exactly “be the manager of the everyday municipal affairs of his constituency”.

“We agree totally with Tay Kheng Soon that an MP is not an estate manager! I said this during the television debate in GE 2015. If you want an estate manager as MP, then make sure your MP has professional qualification to be an estate manager,” Lim Tean wrote in his post. He also noted that even if the MPs are expected to be estate managers, People’s Action Party (PAP) MPs “fare poorly compared to the Opposition ones”.

“Was very impressed with how squeaky clean Jalan Damai under Pritam Singh is, whereas parts of Woodlands under PAP are the slums Lee Kuan Yew said Opposition wards would turn into. That has not happened!” Lim Tean explained.


Lim Tean shared a post. November 18 at 9:30 PM

We Agree Totally With Tay Kheng Soon That An MP Is Not An Estate Manager!

I said this during the televised debate in GE 2015. If you want an estate manager as MP, then make sure your MP has professional qualifications to be an estate manager.

Even if we want the MP to be an estate manager, the PAP MPs fare poorly compared to the Opposition ones. Was very impressed with how squeaky clean Jalan Damai under Pritam Singh is, whereas parts of Woodlands under the PAP are the slums Lee Kuan Yew said Opposition wards would turn into. That has not happened!


Tay Kheng Soon November 18 at 5:13 PM

The role of an MP is primarily that of a legislator in Parliament to enact laws. His role in his constituency is to learn and reflect the views of his constituents regarding the laws of the land.

There has been a great misunderstanding of this role as it evolved over the years. The MP is not and never meant to be the manager of the everyday municiple affairs of his constituency. This is and should be done by full time managers employed for this.

As legislator he will of course want to seek out the views of his constituents on the laws and regulations that affect the country and also his constituents. Laws such as disallowing PMDs on footpaths or CECA or foreign policy relations with China and USA. His meet the people sessions us for this. To demand that an MP be responsible for a locked firehose in a fire is totally wrong.


Sylvia Lim says Heng Swee Keat "acted prematurely" in decision to file motion on AHTC

Workers' Party MPs to appeal AHTC judgment; calls on House to reject 'premature' motion by DPM Heng
The Workers' Party's Sylvia Lim arriving at the Supreme Court on Oct 19, 2018

The Workers' Party (WP) Members of Parliament (MP) found liable for the misuse of tens of millions in town council funds by a High Court judge will appeal against the decision.

WP chairman Sylvia Lim told Parliament in a clarification on Tuesday (Nov 5) that she and co-defendants Mr Pritam Singh and Mr Low Thia Khiang have reviewed the judgment with their lawyers and will appeal against it at the Court of Appeal.

High Court judge Kannan Ramesh released his written judgment on Oct 11, saying there is "serious doubt" about the integrity of Ms Lim and Mr Low, and that they had breached their fiduciary duties in appointing FM Solutions and Services (FMSS) as managing agent of Aljunied-Hougang Town Council (AHTC).


DPM Heng calls on Workers' Party MPs Sylvia Lim and Low Thia Khiang to recuse themselves from AHTC financial matters
DPM Heng Swee Keat (left) tabled a parliamentary motion for WP's Sylvia Lim and Low Thia Khiang to recuse themselves from all financial matters at the AHTC. PHOTOS: NG SOR LUAN, ST FILE

Deputy Prime Minister Heng Swee Keat on Tuesday (Nov 5) called on Workers' Party (WP) MPs Sylvia Lim and Low Thia Khiang to recuse themselves from all financial matters at the Aljunied-Hougang Town Council (AHTC).

He also asked the WP what it planned to "put its own house in order", noting it has remained "totally silent" since a High Court verdict released last month found Mr Low and Ms Lim had acted dishonestly in awarding a managing agent contract for AHTC to a company set up by their supporters without calling a tender.

"Will they at long last be conducting their own investigation? Or will they continue to duck, dodge and deny?" Mr Heng said.


Parliamentary motion calls on Low Thia Khiang & Sylvia Lim to recuse themselves from AHTC financial matters
The motion was passed in Parliament today (Nov 5)

Deputy Prime Minister Heng Swee Keat introduced a Parliamentary motion today (Nov. 5), calling on Workers’ Party (WP) MPs Sylvia Lim and Low Thia Khiang to recuse themselves from all financial matters at the Aljunied-Hougang Town Council (AHTC). Heng delivered a 65-minute long speech when he moved the motion.

The motion affirms the importance of Members of Parliament maintaining high standards of integrity and accountability. It notes that Lim remains Vice-Chairman of AHTC, and Low remains an elected member of AHTC.

AHTC is called on to “discharge their responsibilities to their residents”. This means that Lim and Low are required to recuse themselves from all matters relating to, and oversight over, AHTC financial matters.


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

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.


How AHTC verdict will play out at the General Elections

Way back in 1986, the ever-cunning Lee Kuan Yew came up with a plan to erect one more hurdle for the opposition. The Town Council concept, which made Members of Parliament responsible for the upkeep of public housing estates, was born. Tied to that concept was an overt message that if voters were to elect politicians without the right credentials, the estates might become unliveable as rubbish piled up and other basic necessities like lifts, lighting and water supply were disrupted.


That was the nightmare scenario painted by Lee. As he said in the 1988 National Day Rally, "If your MP is not honest, or not competent, you will know it soon enough. And if your estate is poorly run, repairs slow, and lift maintenance poor, you will be inconvenienced and worse, the resale value of your flat will be affected... Your personal well-being will be at stake when you choose your MP."


Some 33 years later, a very different scenario is playing out. The dominant opposition Workers’ Party (WP) is on the brink of losing two of its top leaders, as the High Court found them guilty of a conflict of interest in employing “conflicted persons” to run the Aljunied-Hougang Town Council (AHTC) and overpaying the managing agent, possibly to the tune of millions. Many had expected the verdict but what was damning was Justice Kannan Ramesh’s strong language. His judgement was sprinkled with words like “inexcusable” and “egregious” in describing the actions taken by then secretary-general Low Thia Khiang and chairman Sylvia Lim.


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AHTC case: High Court finds WP’s Aljunied GRC MPs Pritam Singh, Sylvia Lim and Low Thia Khiang liable for damages against town council
The High Court today (11 Oct) found Workers’ Party (WP) Aljunied GRC Members of Parliament (MPs) Pritam Singh, Sylvia Lim and Low Thia Khiang liable for damages against the Aljunied-Hougang Town Council (AHTC) and the Pasir Ris-Punggol Town Council (PRPTC)

Judge Kannan Ramesh, in his written judgement, ruled that Lim and Low as town councillors had acted in breach of their fiduciary duties to AHTC.

He reasoned that such breach of fiduciary duties was evident in the waiver of tender leading to the award of the first managing agent (MA) contract to FM Solutions & Services (FMSS).

The waiver, said the judge, was “not justified under the Town Council Financial Rules (TCFR), and that subsequently, Lim and Low had “failed to act in AHTC’s best interests and had acted for extraneous purposes”.

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What you need to know about the High Court judgment

Workers’ Party (WP) leaders have been found liable for the misuse of tens of millions in town council funds, the High Court ruled on Friday (Oct 11)

High Court judge Kannan Ramesh said that WP Members of Parliament Mr Low Thia Khiang and Ms Sylvia Lim were not only derelict in appointing a managing agent for Aljunied-Hougang Town Council (AHTC) without calling for a tender, they had also painted a narrative that was "misleading and not honest" in order to do so.


"Their conduct was improper and the attempt to cloak the same with a veneer of truth and credibility collectively leads to the conclusion that they had not acted honestly and therefore breached their duty of unflinching loyalty to AHTC as fiduciaries," he said.


This following is a summary of key points raised in the judgment:

  • Who’s involved and what were their roles?
  • What were defendants accused of?
  • What were they found in breach of?
  • Appointment of FMSS as managing agent
  • "Political considerations"
  • “Improper payments” to FMSS and FMSI
  • What were they not found liable for?
  • What might they need to pay?
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How it all unfolded: The AHTC case in a nutshell

Three WP MPs – Mr Low Thia Khiang, Ms Sylvia Lim and Mr Pritam Singh – were sued by an independent panel acting on behalf of the WP-run AHTC as well as by the People’s Action Party-run Pasir Ris-Punggol Town Council (PRPTC)

With the courts finding Workers’ Party Members of Parliament (MPs) liable for damages on Friday (Oct 11), the six-year saga of the Aljunied-Hougang Town Council (AHTC) reached yet another milestone.


It looks set for a protracted legal tussle with the case going back to court again for a second tranche to determine damages, which could reach up to S$33.7 million.


Three WP MPs — Mr Low Thia Khiang, Ms Sylvia Lim and Mr Pritam Singh — were sued by an independent panel acting on behalf of the WP-run AHTC as well as by the People’s Action Party-run Pasir Ris-Punggol Town Council (PRPTC).


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Timeline of Aljunied Hougang Town Council saga from 2011-2019


Three Aljunied GRC MPs – the Workers’ Party (WP) chief Pritam Singh, Sylvia Lim and Low Thia Khiang were on Friday (11 October) found by the High Court to be liable for damages suffered by Aljunied Hougang Town Council (AHTC), which is said to have made millions in improper payments under their watch.


The long-running saga will now move on to a second round of hearings to determine the quantum of damages suffered by AHTC, and how much it can recover from the MPs.


Here is a recap of the major developments so far:

  • May 2011 - The WP wins Aljunied GRC and Hougang SMC in the general election.
  • August 2011 - The WP takes over AHTC and appoints FM Solutions and Services (FMSS) as its managing agent.
  • January 2013 - WP wins Punggol East in the by-election.
  • February 2014 - The Auditor-General's Office (AGO) is directed to audit the town council's accounts after its auditor raises issues of concern.
  • February 2015 - The AGO flags lapses in governance and compliance, including FMSS’ co-owners being town council staff.
  • January 2016 - KPMG is appointed to audit AHTC after a court order.
  • October 2016 - The audit finds flaws in the town council's governance and highlights improper payments of $33.7 million to FMSS
  • February 2017 - AHTC appoints an independent panel to review the KPMG report.
  • July 2017 - The independent panel files a civil lawsuit against several town councillors, including WP MPs Low Thia Khiang, Sylvia Lim and Pritam Singh for breach of fiduciary duties.
  • October 2018 - The trial begins in the High Court.
  • October 2019 - Justice Kannan Ramesh finds the WP MPs liable for damages suffered by AHTC. Damages will be assessed by the court at a later date.

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Residents not surprised by verdict but many hope WP MPs will not be disqualified


Work at the Aljunied-Hougang Town Council (AHTC) continues in earnest, Workers' Party (WP) chief Pritam Singh said, even as he and his fellow Aljunied GRC MPs, Ms Sylvia Lim and Mr Low Thia Khiang, study a judgment issued by the High Court on Friday (Oct 11).


"We are reviewing the judgment carefully and will take the advice of our lawyers before announcing our next step," Mr Singh said in a Facebook post on Friday evening.


In a 338-page judgment released on Friday afternoon, High Court judge Kannan Ramesh found the trio liable for damages suffered by AHTC.


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Work continues at town council as WP MPs study court's decision, says Pritam


Work at the Aljunied-Hougang Town Council (AHTC) continues in earnest, Workers' Party (WP) chief Pritam Singh said, even as he and fellow Aljunied GRC MPs Sylvia Lim and Low Thia Khiang study a High Court judgment issued yesterday.


"We are reviewing the judgment carefully and will take the advice of our lawyers before announcing our next step," Mr Singh said in a Facebook post yesterday evening.


In a 338-page judgment released yesterday afternoon, High Court judge Kannan Ramesh found the trio liable in a case involving the misuse of town council funds.


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“We will stand with you!” – Widespread support for WP pours forth following AHTC judgment

Support for the Workers’ Party (WP) has been pouring forth even after the High Court found three WP Members of Parliament (MPs) liable for damages in the Aljunied-Hougang Town Council (AHTC) lawsuit

Between July 2011 to July 2015, AHTC had paid at least S$33.7 million to their town council managing agent FM Solutions & Services (FMSS), which was appointed without tender. Claiming that these were “improper” payments, an independent panel appointed by the town council initiated civil proceedings against Low Thia Khiang, Sylvia Lim and Pritam Singh.


In his judgment released yesterday (11 Oct), High Court Judge Kannan Ramesh said that Mr Low and Ms Lim had breached their fiduciary duties to AHTC and that Mr Pritam breached his duties of skill and care to the town council.


The case is set to move on to a second set of hearings to determine the quantum of damages suffered by AHTC and how much is recoverable from the parliamentarians. The MPs can also appeal the High Court’s decision.


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AIM saga thrust back in the limelight after WP chief’s comments on “political double standards”

In 2018, WP parliamentarian Png Eng Huat shared the notice AIM sent to AHTC informing them of the termination of contract in 2011

Netizens are recirculating old news articles and Facebook posts on the AIM saga in the wake of the High Court judgment in the Aljunied-Hougang Town Council (AHTC) case as well as Workers’ Party (WP) secretary-general Pritam Singh’s recent comments on “political double standards.”


In a Facebook post published on Tuesday (15 Oct), Mr Singh revealed how unfair the playing field is for opposition town councils when he shared that a simple access ramp that could have been built in months took about seven years to build.


Mr Singh decried the People’s Action Party’s (PAP) practice of appointing defeated PAP candidates as grassroots advisers in opposition-held wards as one reason why community improvement projects are delayed and called this practice a “political double standard” since defeated opposition candidates do not get the same benefits.



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PAP's 'divisive approach' to politics is polarising Singapore society: Pritam Singh

A few days after three Aljunied GRC Members of Parliament were found by the High Court to be liable for damages suffered by Aljunied Hougang Town Council (AHTC), Workers’ Party (WP) chief Pritam Singh has gone on the attack, accusing the ruling People’s Action Party (PAP) of practicing “political double standards” in the approval of municipal projects.

As the next general elections get closer, Singh said he is hearing various 4G leaders speak of the “dangers of a polarised society, dysfunctional politics with social media often blamed”.

In a scathing Facebook post on Tuesday (15 October), he added, “The 4G leaders also repeat calls for an inclusive society, co-creating policies etc. But would the 4G leaders dare consider that the PAP’s divisive approach to politics may be the elephant in the room that will make Singapore a politically polarised society?”


WP Accused Of Lack Of Fiduciary Duty



One country, two systems of justice?

As has been expected for many months now, the Singapore Court have finally found the WP MPs, specifically Low Thia Kiang and Sylvia Lim, guilty of not discharging their fiduciary duties in the Aljunied Hougang Town Council case. Quite why they took so long to come to this decision when every Singaporean knows the WP MPs will be found guilty was also not surprising, as the verdict conveniently timed it just right for Elections season to begin.


So the premise is simple. When lapses occur under WP, they are characterised as failure to exercise fiduciary duty and breach of trust with HDB, MND and the PAP, as well as even the mainstream media all ganging up in a unified smearing campaign. Singaporeans not blinded by PAP hoodwinking them at every corner knows just how hard the WP MPs had to work to make sure their Town Council can run smoothly. It was also a known fact that the duly elected MPs had carried out their work in good faith against tremendous challenges as a result of PAP’s attempts to sabotage their town council management, starting with dubious PAP shell company called AIM Pte Ltd, of which had quietly gone ridding into the sunset, with nary a word said about them.


But when worse lapses occur under the People’s Association, which is under the purview of the PMO no less, failed to submit financial statements for over 10 years, despite the quasi-PAP organisation receiving up to $1bn a year in funding, they are called “good intentions”. And when the Ang Mo Kio Town Council General Manager took bribes for almost two years before finally being caught, the PAP MPs for that TC, led by the esteemed PM himself, did not even get a slap on the wrist. So what were the MPs doing for two years when their appointed man was happily taking bribes managing their town Council? Sleeping on the job to not realise this? Isn't this the same as failing in their fiduciary duties?


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What is a Fiduciary Duty?


A person with a Fiduciary Duty is someone in whom another person has placed the utmost trust and confidence to manage and protect property or money. The Fiduciary Relationship describes a relationship in which one person has an obligation to act for another's benefit.


In other words, in a fiduciary relationship a manager's primary obligation or duty is to act towards the benefit of the shareholders. A fiduciary has two duties: a duty of loyalty and a duty of care. Loyalty means avoiding conflicts of interest and always acting in the clients best interest. Care is a duty to act rationally, provide clarity and be objective. It doesn't necessarily mean never making bad business decisions, but that due process should be followed.


Many business experts agree that the fiduciary duty extends to stakeholders. In this model the management's traditional fiduciary duty expands to include stakeholders on a broadly equal basis as shareholders.


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Covering The Other Side SG Yesterday at 7:56 AM

"Despite receiving a ‘green’ banding for corporate governance – the highest rating possible, the Ministry of National Development has considered taking regulatory action against Aljunied-Hougang Town Council.

In contrast, the government’s response to the Bukit Batok fire has been deafeningly silent, despite clear evidence of gross negligence on the part of the town council in failing to ensure fire safety regulations were followed.

Attempting to shift responsibility to the contractor does not diminish the town council’s culpability. One can only imagine the ruling party’s reaction had the fire taken place in Aljunied-Hougang Town Council."

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Full Coverage:
After years of 'deception', time of reckoning has come for WP MPs
DPM Heng calls on WP MPs to recuse themselves AHTC financial matters
WP 'cannot stay silent' and has to take action after leaders found liable
Heng Swee Keat says it "pains" him to raise motion against WP MPs
WP calls on House to reject 'premature' motion by DPM Heng
Workers' Party MPs will appeal against AHTC judgment, says Sylvia Lim
WP should apologise for AHTC lapses, require MPs to stand down
DPM Heng calls on WP MPs recuse themselves from AHTC financial matters
Sylvia Lim says Heng Swee Keat "acted prematurely" to file motion on AHTC
Workers' Party "cannot be silent" on AHTC case: DPM Heng Swee Keat

WP's Pritam Singh, Sylvia Lim and Low Thia Khiang found liable for damages
Workers' Party MPs embroiled in civil suits appeal to public for funds
WP ex-chief Low Thia Khiang gave FMSS 'a gun to put to AHTC's head'
Low Thia Khiang testifies:didn't spend AHTC residents' monies improperly
Workers' Party ex-chief Low Thia Khiang set to testify in AHTC hearing
WP AHTC town councillors 'acted in good faith, complied with the law'
Highly anticipated AHTC hearing against 3 Workers' Party MPs begins
The shadows that hang over new Workers' Party chief Pritam Singh
WP's MPs cite ‘political nature’ of town councils in defence against lawsuit
Aljunied-Hougang Town Council saga: What is the end game?
Low Thia Khiang: Workers’ Party ‘prepared to be judged’ by Singaporeans
Pasir Ris-Punggol Town Council files suit against AHTC town councillors
WP MPs, lawyers make final push of key arguments in closing submissions
WP's Pritam Singh, Sylvia & Low Thia Khiang found liable for damages
Residents not surprised by verdict but hope WP MPs will not be disqualified
Judge says risk of overpayment due to conflicts of interest,lack of safeguards
Judgment on AHTC case: What you need to know
AHTC case: What you need to know about the High Court judgment
“We will stand with you!” – Widespread support for WP pours forth
Work continues at town council as WP MPs study court's decision,says Pritam
WP leaders engineered plan to ensure FMSS could be appointed without tender
AHTC case: Defendants breached fiduciary duties to town council, says judge
AHTC case: HDB urges town council to take steps to recover misused funds
Judge: WP leaders put own political interests above AHTC
Sporean MPs found liable for damages suffered by town councils after improper
Pritam Singh, Sylvia & Low Thia Khiang 'will continue work in earnest'
Timeline of Aljunied Hougang Town Council saga from 2011-2019
Managing agent also found liable in AHTC case
Low Thia Khiang,Sylvia & Pritam Singh found liable for damages suffered by TC
Workers' Party MPs found liable in AHTC case
High Court find WP's GRC MPs Pritam Singh, Sylvia & Low Thia Khiang liable
WP MPs found liable; judgment raises 'serious doubt' about their integrity
How it all unfolded: The AHTC case in a nutshell
WP's Pritam Singh, Sylvia Lim, Low Thia Khiang found liable for damages
WP MPs found to have breached duties, liable for damages suffered by AHTC

WP's Pritam Singh,Sylvia&Low Thia Khiang found liable for damages
AHTC case: WP MPs reviewing judgement, will take advice from lawyers
Judge says risk of overpayment due to conflicts of interest,lack of safeguards