SINGAPORE — Fresh out of her party’s historic win at the 2011 General Election, former Workers’ Party (WP) chairman Sylvia Lim already considered hiring a new managing agent for the town council, and waiving the need to call a tender for it.

Taking the stand for the second day as defence witness in a multi-million dollar civil suit, Ms Lim admitted in court on Friday (Oct 19) she had these thoughts around May 9, 2011, two days after WP wrested the Aljunied Group Representation Constituency (GRC) from the People’s Action Party (PAP).

She said by that date, the elected Members of Parliament (MPs) agreed that engaging a managing agent was better than direct management for the new-formed Aljunied-Hougang Town Council (AHTC).

Asked by Senior Counsel Davinder Singh why she then thought of waiving tenders as early as May 9, Ms Lim said: “I was thinking that a waiver was required, given the limited number of days (to take over the town council), (and) the need to mitigate the risk of disruption of services.”

She added that she felt it was “prudent” that the power to waive tenders might need to be exercised.

Ms Lim, along with fellow WP MPs Low Thia Khiang and Pritam Singh, two town councillors, as well as Ms How Weng Fan and the late Danny Loh — owners of managing agent FM Solutions and Services (FMSS) — are being sued by Pasir Ris-Punggol Town Council (PRPTC) and an independent panel acting on behalf of AHTC over alleged wrongful payments made to FMSS and the town council’s service providers.

During cross-examination, Mr Singh, who was representing PRPTC, also put it to Ms Lim that on May 9, not only had she decided that the town council would need a new managing agent, but she also had elected to make Ms How manage the managing agent.

“Any appointment of a new managing agent was contingent on CPG’s position. But we could not not prepare,” countered Ms Lim, a lawyer herself.

CPG Facilities Management was the town council’s former managing agent. WP’s Mr Low had testified earlier in the week that it was CPG which wanted out — a point which Ms Lim concurred.

But, saying he could not put two and two together, Mr Singh asked: “If it was contingent on CPG’s position, why the need to waive tenders? Why? I have a problem with the jump ... I can understand if you wanted CPG out, you would have prepared for a tender, (but) you went even further to want to waive a tender?”

Under the Town Councils Act, tenders need to be called for services estimated to cost more than S$70,000. However, tenders may be waived in the interest of urgency, or if there is public interest, among other reasons.

Ms Lim’s reply on Friday was that she was “aware of the rules”, and cited reasons like public interest and urgency as reasons for the waiver of a tender that saw FMSS became the town council’s managing agent.

However, she disagreed with Mr Singh’s claims that they wanted CPG removed so that they could bring FMSS in.

‘YOU WANTED TO HAVE YOUR CAKE AND EAT IT TOO’

Staying on the issue of managing agents, Mr Singh put it to Ms Lim that in spite of how CPG was viewed — as one that might not do a good job managing an opposition-led town council — it was evident that she had, in her capacity of town council chairperson, wanted the company to stay on.

Said Mr Singh: “If you consider that CPG was not doing a good job (and was unprofessional and unreliable), then it would have mattered (in the way) you viewed CPG right?”

Ms Lim agreed, following which Mr Singh showed her the minutes of AHTC’s first meeting. The document indicated that CPG would be providing its services for the Essential Service Maintenance Unit (EMSU) until Sept 30, 2011, longer than the original period they were to remain with AHTC, which was till the end of June.

Given that EMSU services were crucial for the town council, a “reliable and trustworthy” company would be needed, contended Mr Singh. 

Furthermore, he charged that there were other projects in AHTC that CPG was working on, and that the town council was happy to have it continue on.

“How does this make sense? On the one hand, you (said) they were trustworthy (for providing EMSU) services, but you also wanted them out.

“You wanted CPG out as soon as possible, so that you can bring (in) FMSS, (but you also) wanted to take advantage of CPG for essential services,” he added.

“What you wanted, Ms Lim, was to have your cake and eat it,” he put it to Ms Lim.

Her immediate reply: “Very creative, Mr Singh, but that is not (how) it is.”

She explained that the projects which CPG carried on working in the town — with some till 2012 — were because they were already well underway. As for the EMSU services, this was because the contract was a central contract — CPG provided its EMSU services not just to AHTC, but to other town councils.

Ms Lim will continue to take the stand on Friday afternoon. 

Sign up for TODAY's WhatsApp service. Click here:
 

Sign Up