MND to appeal ruling on AHPETC

SINGAPORE — The Ministry of National Development (MND) is appealing against a High Court’s refusal to appoint independent accountants to oversee government grants to the Aljunied-Hougang-Punggol East Town Council (AHPETC), noting that the “serious findings” made by the judge means public funds cannot be disbursed to the Workers’ Party-run town council “in the current circumstances”.

TODAY understands that the appeal was filed today (May 29), two days after the High Court turned down the ministry’s application after finding that it had not established the legal bases for such an order.

In a statement today, MND noted that the judge found that AHPETC “had breached and continues to be in breach of its duties and obligations in law, and that there are critical questions about the state of its finances”.

The ministry’s spokesperson added: “The Attorney-General’s Chambers (AGC) has advised the MND that an appeal should be filed, for the appointment of independent accountants. The appointment of independent accountants will allow the Government to immediately disburse grants to AHPETC, in the interest of residents, while ensuring that these public funds are adequately safeguarded.”

In an 80-page judgment released on Wednesday, Justice Quentin Loh had stressed AHPETC’s “numerous breaches” of the statutes covering town councils, which would result in “severe consequences” — including possible civil and criminal liabilities — if they had occurred in a public company.

He also flagged AHPETC’s “far from satisfactory” management of its funds and finances and the validity and propriety of payments it made previously to related parties.

Justice Loh also said residents and the Housing and Development Board are empowered to seek court action against AHPETC, adding that AHPETC “was to be blamed” for rejecting MND’s offer to release half of the grants for financial year 2014, subject to conditions.

A day later, Law and Foreign Affairs Minister K Shanmugam followed up with hard-hitting words for Workers’ Party’s Members of Parliament, stressing that AHPETC’s “unlawful conduct” has to be punished.

Today, the MND spokesperson said that the appointment of independent accountants would also allow past payments made by AHPETC to be examined.

“They will be able to take steps to recover monies lost from financial mismanagement and questionable payments,” the ministry said.

Responding to TODAY’s queries, Workers’ Party and AHPETC chairman Sylvia Lim said she was surprised by the MND’s move.

“I’m surprised by MND’s position, especially that they are not taking the advice of the judge that MND and AHPETC should work together to arrange for the grants to be disbursed,” said Ms Lim, who added that AHPETC will be consulting their lawyers and resisting the appeal.