SINGAPORE — Lawyers for the Workers' Party (WP) leaders have filed a notice to appeal in the case of misuse of funds by Aljunied-Hougang Town Council (AHTC), Ms Sylvia Lim confirmed on Monday (Nov 11).

The WP chairman told CNA on Monday evening that the court had accepted the notice to appeal, filed by lawyers for the three WP Members of Parliament and two town councillors in the case.

Ms Lim, along with WP chief Pritam Singh and opposition stalwart Low Thia Khiang, had been found liable by a high court judge in a judgment released last month in a landmark case investigating misuse of town council funds.

A second tranche of the trial will determine how much of the S$33.7 million in claims the three MPs will be liable for, if any.

Justice Kannan Ramesh had found that Ms Lim and Mr Low had breached their fiduciary duties in appointing FM Solutions and Services (FMSS) as managing agent of AHTC, failing to act in the town council's best interests and acting for "extraneous purposes".

While Mr Singh had not breached his fiduciary duties to AHTC, he had breached his "duties of skill and care".

The civil suits had been brought against the eight defendants by AHTC and Pasir Ris-Punggol Town Council (PRPTC), the former asking for claims of S$33.7 million from the defendants, with costs, and were based on audit reports by KPMG and PricewaterhouseCoopers.

The auditors had pointed to poor controls in the town council, flawed governance and millions of allegedly improper payments made by the town council to FMSS.

Deputy Prime Minister Heng Swee Keat introduced a motion in Parliament last Tuesday (Nov 5) calling on AHTC to require Ms Lim and MR Low to "recuse themselves" from all financial matters related to the town council.

The motion was passed with 52 MPs supporting it, nine opposing it and two abstentions.

Mr Singh said parliament had been "prematurely hijacked" to debate this matter before the court case was resolved. CNA

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