I made a speech in Parliament yesterday on the unlawful way in which money was paid out of Aljunied Town Council. There are many serious questions need to be addressed. The Town Council has lost money while FMSS, its management agent, owned by the GM and Secretary of the Town Council, has made significant profits. For example, the TC overpaid FMSS – by paying much higher fees. Probably in excess of $6 million. And they probably paid nearly $20 million in very questionable ways to FMSS over 4 years. This is the people’s money which has been taken out and given to party supporters .
Here are the key points of my speech:
1. Unlawful actions, breach of fiduciary duties
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FMSS is owned by Mr Loh, Ms How and Mr Yeo, who had close links to WP and were party supporters. The payments they were verifying and/or approving on behalf of the Town Council, were going into their own companies
Mr Loh and Ms How were issuing invoices on behalf of FMSS
Mr Loh and Ms How were then verifying on behalf of the Town Council the work done by FMSS.
They were certifying on behalf of the Town Council the payment by the Town Council to their own company
Ms How was then approving on behalf of the Town Council the cheques for payment to FMSS
Mr Loh was signing the Town Council cheques, for payment to FMSS.
Allowing this structure is unlawful. This structure cannot be approved by law.
Town Councillors who approved such a process would be in serious breach of fiduciary duties
Money paid out in this way, just in one year - $6.6 million. Over 4 years the amount will not be much less than $20 million.
2. Aljunied Town Council suffered a loss as a result of the transfers
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Overcharging for all contracts related to management agents: Probably around $6.4 million.
And consider the $20 million or so that must have been paid out under item 1 – there will be some double counting, but nevertheless we are talking very big amounts paid to FMSS.
3. No transparency and accountability
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Refer to Annex 1
FMSS allowed to pay themselves without proper disclosure of ownership
No discussion on how to mitigate risks from conflict of interest
Again, a breach of fiduciary duties
Refused to give information to their own auditors Foo Kon Tan Grant Thornton LLP
Refused to give information to PriceWaterHouseCoopers – who were appointed as part of the AGO audit
Refused to disclose information on related parties as required by FRS – this is in breach of the law
Consistent pattern of concealment
4. Individual responsibility of each elected Councillor
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Any honest Town Councillor will admit that all this is unacceptable and will want to set right what has gone wrong.
This includes:
Come clean on the facts
Relook the contracts and payments
Recover the overpayments and payments made in breach of fiduciary duties
Take legal action where necessary
Aljunied residents deserve real, honest answers. The WP has to come clean and explain themselves to the public.
See full speech transcript in Note: https://www.facebook.com/notes/832265283486670/