CNA breaks down the history of the years-long lawsuits involving Workers' Party leaders, what the various judges' findings were and what lies ahead.
AHTC trial: Managing agent 'enjoyed' 300% profit increase as town council's finances suffered, say lawyers
The plaintiffs also pointed to how contracts had been"improperly" awarded to third parties for various services the town needed, such as for electricity or pest control. The question of Ms How and her husband’s potential conflicts of interest had been raised, but the WP leaders mistakenly believed it could be managed, as they saw how similar dual roles were taken in PAP town councils.THE TRIAL JUDGE’S FINDINGS
He found that all the defendants had breached their duties of skill and care for the control failures in how the payment process to FMSS was handled. The Court of Appeal overturned most of the liable findings by the trial judge, rejecting that the defendants were fiduciaries or owed equitable duties, on which most of the findings rested.
However, the court did not completely clear the appellants. They found that the WP leaders and town council employees did not act in good faith when they implemented a standing instruction. This standing instruction was put in place at a town council meeting in September 2011, requiring payments to FMSS to be co-signed by the chairman or the vice-chairman .
In terms of the payments process, the court found that all the defendants were liable to Sengkang Town Council for negligence in allowing the system to persist despite the conflict of interest involved. The court at various times had referred to the likely difficulty of this exercise. The Apex Court said in its first judgment that AHTC and SKTC, as claimants, would bear the burden of proving any losses that came as a result of the control failures.
The court added that it was not clear if AHTC or SKTC had provided evidence of any instance where the control failures actually resulted in improper payments, such as for uncompleted works or works that were not performed up to par.
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