SINGAPORE — Workers’ Party chairman Sylvia Lim threw caution to the wind and gave managing agent FM Solutions and Services (FMSS) a free pass to hire employees, because she was not dealing with her own money, charged the lawyer for Pasir Ris-Punggol Town Council on Friday (Oct 19).

“You seem to be casual about people’s money,” said Senior Counsel Davinder Singh.

As she had since taking the stand on Thursday, Ms Lim disagreed with the accusation that she and fellow Aljunied Member of Parliament (MP) Low Thia Khiang wanted to rope their “own people” into Aljunied-Hougang Town Council (AHTC) at all cost.

Ms Lim admitted to a breach of town council rules when it came to a waiver of tender, however.

A letter of intent dated June 15, 2011, stated that FMSS would take over Hougang Town Council’s staff on a reimbursement basis — at a rate of S$1.1m a year, or about S$90,000 a month.

There was no supporting document to indicate why a waiver of tender was needed. Under the rules, tenders should be called for services that chalk up a monthly fee of more than S$70,000.

On or around June 13 and 14, a decision had already been made to waive a tender for a new managing agent, but there was “nothing on record” to explain the waiver.

Ms Lim conceded that “on this date (and at this point)”, there had been a breach of town council rules.

“On the basis of what you said, the letter of intent was implemented before it was received (in July),” Mr Singh added.

Mr Singh also highlighted a point in FMSS’ letter of intent which stated that it would “engage new staff as necessary for the handing and taking over and shall claim staff costs on a full reimbursement basis”.

Ms Lim said she did not know the maximum number of people FMSS intended to hire. She gave FMSS “the discretion” to hire the people it deemed fit.

Mr Singh responded: “Would you tell your gardener to ‘go forth and hire, and hire as many as you want, I will reimburse you’?”

Exasperated, Ms Lim said the analogy was “not applicable” and that it was “for a transitional period”.

Mr Singh said unlike using one’s own money to pay his or her gardener, the town council was dealing with “other people’s money”.

“You gave FMSS carte blanche…(you told them) not to worry during this period, the residents would pay for it,” he continued.

REASONABLE OR NOT?

Ms Lim had said in her affidavit that she, Mr Low and fellow MP Muhamad Faisal Abdul Manap had listened to a proposal from FMSS and found it to be reasonable.

Mr Singh pressed for details on FMSS’ managing agent fees, but Ms Lim said she was unsure. She also told the court she was unsure of FMSS’ cost structure, that of its predecessor CPG Facilities Management and the number of people FMSS intended to employ for AHTC.

“Yet you found it reasonable enough a proposal,” said Mr Singh.

He also took issue with Ms Lim saying she was “comforted” that FMSS would be charging rates similar to CPG’s.

“Here was a company that has no prior experience in managing a town (the size of AHTC)…and you were happy to pay the amount as you would to CPG?” questioned Mr Singh.

Ms Lim said the town council “had to get things moving”.

“It was reasonable for them to adopt the same price, because we would be paying the same price (to CPG) anyway,” she said.

Mr Singh replied: “Because it was residents’ money, and not from your own pocket, it didn’t apply to your mind to have negotiated for a better deal (with FMSS).

“You were content with (FMSS’ price) because it served your political purpose — to get CPG out and put your supporters in — (and you) used residents’ money to achieve your political purpose.”

When Ms Lim told Mr Singh that the appointment of FMSS was for the “critical transition period” of a year, before a tender was to be called, Mr Singh shot back: “Whether it is a managing agent contract, or to service a garden, if someone has an experienced supplier and someone new comes along, is it reasonable for the customer to assume the same price should be paid?”

He disagreed that there was no time to discuss further. The proposal was drawn up in June 2011 and FMSS’ letter of intent was approved in July.

Ms Lim, Mr Low and Mr Pritam Singh are the three Aljunied MPs being sued by Pasir Ris-Punggol Town Council and an independent panel acting on behalf of AHTC over alleged wrongful payments made to FMSS and the town council’s service providers.

Two other town councillors, as well as Ms How Weng Fan and her late husband Danny Loh — who are WP supporters and owners of FMSS — are also being sued.

Earlier in the week when he cross-examined Mr Low, Mr Singh argued that Mr Low did not call a tender for a managing agent because he was worried that someone “better than FMSS” would put in a bid and deny FMSS the chance to manage the town council.

FMSS was set up on May 15, 2011, eight days after the General Election that saw residents of Aljunied group representation constituency voting for the WP over the People’s Action Party.

Mr Low was accused of having “jumped at the chance” to get CPG out, placing the interests of his own supporters ahead of his residents.

Mr Singh put the same point to Ms Lim on Friday, to which she disagreed.

She will continue to take the stand next Monday.