Aljunied-Hougang Town Council (AHTC) taking WP leaders to court to account for $33 million it paidThe MPs deny town council's allegations and say they acted in best interests of residentsBy Danson Cheong and Charissa Yong,
The Straits Times, 27 Jul 2017
Aljunied-Hougang Town Council (AHTC) is taking some of its most senior councillors - including Workers' Party (WP) chief Low Thia Khiang and party chairman Sylvia Lim - to court to account for more than $33 million in payments made to its former managing agent and service provider.
AHTC alleges that the payments it made to managing agent FM Solutions and Services (FMSS) and service provider FM Solutions and Integrated Services, from July 15, 2011, to July 14, 2015, are null and void as the town councillors had acted in breach of their fiduciary duties - a charge they strongly deny.
AHTC initiated the legal action under the direction of an independent panel it appointed in February to help recover improper payments, as first reported by The Straits Times yesterday.
It is demanding that Mr Low, Ms Lim, FMSS owner How Weng Fan and FMSS give an account of the $33,717,535 in payments.
AHTC wants "equitable compensation" for any sum that has been wrongfully paid out.
At the very least, it wants Mr Low and Ms Lim to be liable for a sum of $1,261,773 - which it claims was the difference in fees between the "inflated rates" charged by FMSS and the rates it would have paid under CPG Facilities Management, the previous managing agent.
AHTC claimed that Mr Low and Ms Lim had acted in bad faith and misled other town councillors in order to justify installing FMSS as the managing agent without a tender. They then "set up and/or allowed a system" that made it possible for FMSS and its officers to "benefit themselves".
"No town councillor could have reasonably approved the system, without being in breach of his or her duties," said AHTC.
The town council, represented by lawyer David Chan from Shook Lin & Bok, set out its demands in a statement of claim filed in the High Court.
The independent panel that directed the action is chaired by Senior Counsel Philip Jeyaretnam and includes Senior Counsel N. Sreenivasan and KPMG managing partner Ong Pang Thye.
The WP MPs have denied the allegations.
Speaking to the media last night, Mr Low thrice said that his conscience is clear.
"We acted in good faith and in the best interests of residents - the residents can see for themselves," said Mr Low, who was flanked by Ms Lim and town council chairman Pritam Singh, also a defendant in the suit.
Ms Lim and Mr Singh said they welcomed the opportunity to tell their side of the story in court.
Mr Singh said: "It is my firm conviction that we acted in good faith. We are not in politics for the purposes of enriching ourselves and things of that nature."
In a statement released earlier yesterday, the WP MPs said they "will contest the lawsuit and lay out our case vigorously in court".
They have engaged Senior Counsel Chelva Retnam Rajah from Tan Rajah & Cheah to represent them. A pre-trial conference has been scheduled for Aug 31.Besides the three MPs, other parties named in the suit include two town councillors, Mr Chua Zhi Hon and Mr Kenneth Foo.
The two, along with Ms Lim, were part of the town council's tenders and contracts committee, which was chaired by Mr Singh.
AHTC claims the four breached their duties by causing the town council to enter into contracts in contravention of the Town Councils Financial Rules.
In a separate statement, the Housing Board said it is studying the details of the claim, and has asked the Attorney-General's Chambers for advice on the lawsuit.
AHTC lawsuit: How town council came to take legal action against own councillorsBy Charissa Yong,
The Straits Times, 27 Jul 2017
At first glance, it might seem odd that the Aljunied-Hougang Town Council is bringing a lawsuit against its own town councillors.
But the turn of events is possible because the legal action was directed by an independent panel appointed by AHTC in February.
It was created to look into and help recover improper payments made by AHTC worth $6.9 million, which was uncovered by an extensive KPMG audit last year.
The panel is chaired by Senior Counsel Philip Jeyaretnam - whose father J.B. Jeyaretnam was the Workers' Party (WP) secretary-general from 1971 to 2001 and became the first opposition MP voted in after independence.
The other panel members are Senior Counsel N. Sreenivasan and KPMG managing partner Ong Pang Thye. It can act as agents of the town council under Section 32(2) of the Town Councils Act.
The law allows a town council to delegate its powers, functions and duties to an agent such as an independent panel. Under the panel's terms of reference, it can take actions it thinks are in the best interests of AHTC. This includes prosecuting, filing appeals and acting in legal disputes and suits.
The terms of reference thus allow the panel to take legal action in AHTC's name against town council chairman Pritam Singh, vice-chairman Sylvia Lim and WP party chief Low Thia Khiang.
The other defendants are appointed town council members Chua Zhi Hon and Kenneth Foo, Ms How Weng Fan, as owner of AHTC's former managing agent firm FM Solutions and Services (FMSS) and as the representative of the estate of her late husband Danny Loh, and FMSS itself.
According to initial case details, AHTC was claiming $622,593.78 in liquidated claims from multiple parties, as well as $4,167,501.71 in unliquidated claims. However, the full statement of claim shows that the monies in question in fact come up to more than $33 million.
Financial woes began with FMSS' installation, says town councilIt says WP duo breached fiduciary duties by misleading AHTC to secure managing agent's appointmentBy Danson Cheong, The Straits Times, 27 Jul 2017
Shortly after the Workers' Party (WP) won Aljunied GRC in the 2011 General Election, Mr Low Thia Khiang and Ms Sylvia Lim allegedly decided that Ms How Weng Fan and her husband Danny Loh would be instructed to set up and incorporate the estate management company, FM Solutions and Services (FMSS).
The couple, longstanding WP supporters, had helped manage the estate of Mr Low's previous Hougang ward.
FMSS was incorporated on May 15, 2011, with Mr Loh as its sole shareholder and director. The company would go on to be appointed the managing agent of Aljunied-Hougang Town Council (AHTC).
This incident was the start of AHTC's "financial woes", contends a statement of claim filed by AHTC in the High Court.
The statement set out how the two MPs had breached their fiduciary duties by misleading the town council to secure FMSS' appointment, and said this was done in "bad faith and/or for improper purposes".
The town council wants both Ms Lim and Mr Low to declare that they have "breached their fiduciary duty and duty of care", and for them to give an account of $33,717,535 of payments made to FMSS and service provider FM Solutions and Integrated Services (FMSI) from July 15, 2011, to July 14, 2015.
AHTC wants "equitable compensation" for any sum that has been wrongfully paid out.
Alternatively, AHTC wants the two WP MPs to be liable for a sum of $1,261,773 - which it claims was the difference in fees between the "inflated rates" charged by FMSS and the rates it would have paid under CPG Facilities Management, the previous managing agent under the People's Action Party.
It also wants them to give an account of any profits they made in breach of their duties.
The statement alleges that Mr Low and Ms Lim had, on or before May 15, 2011, decided on behalf of AHTC to instruct that FMSS be set up, and that the company would be appointed as managing agent of AHTC without a tender being called. This would initially be for a "transition period" of one year. Mr Loh - who died after a fall in Japan in June 2015 - would concurrently be appointed general manager or secretary of AHTC, while Ms How would be appointed deputy secretary.
AHTC also points to an e-mail sent by Mr Low to Ms How on May 19, 2011, as proof that the WP chief was aware that his instructions, once carried out, would "create a position of conflict".
In the e-mail, Mr Low mentioned a discussion with Ms Lim over the appointment of Mr Loh to his roles in the town council.
He wrote: "As for the conflict of interest, we find that it is not a big issue as all transaction has to follow the Financial Rules and (managing agent's) company is subject to the Companies Act."
The statement also alleged that in a town council meeting on Aug 4, 2011, Ms Lim and/or Mr Low had made "key misleading and/or false representations" to other town councillors - including that CPG had "indicated their desire" to be released from their agreement with the town council.
The two WP MPs also allegedly said there was no time to call for a tender for a new managing agent, and it would be in the public interest to waive calling for such a tender.
There was also no record that town councillors were told that Ms How and Mr Loh were owners of FMSS at the meeting, or that any discussion on conflicts of interest arising from their appointment took place.
Meanwhile, town councillors were also supposedly told that the terms offered by FMSS "did not put the town council worse off" than under CPG.
AHTC's statement pointed out that a report by audit firm KPMG had stated that these reasons for waiving a tender for a managing agent were false or did not justify a waiver.
After the initial first-year contract, a tender for a three-year managing agent contract was called - and it was awarded to the only tenderer, FMSS.
Outlining the payment system, AHTC said invoices from FMSS to the town council would be raised by Ms How, while Mr Loh would raise invoices from FMSI to the town council. Ms How was director of FMSS, while Mr Loh was sole proprietor of FMSI.
Ms How or the town council's deputy general manager Yeo Soon Fei - who was also a minority shareholder of FMSS - would then certify the work done.
This was done "without any second review by another town council officer/member, despite How and Yeo being interested parties to the transaction".
Approval of payment vouchers or cheques would be done in the same fashion by Ms How. Most of the cheques to FMSS and FMSI would then be signed by Mr Loh on behalf of the town council.
Such a system was incapable of providing any independent checks against the payments and safeguards to public monies held by AHTC, said the statement.
"Accordingly, no town councillor could have reasonably approved the system, without being in breach of his or her duties," said the statement.
AHTC also said it had paid "inflated rates" - about 10 per cent, or $515,733, higher for FMSS' initial first-year contract - than if CPG had been retained as managing agent.
Similarly, if AHTC had used CPG's rates between July 2012 and July 2015, it would have saved some $746,000.
WP MPs reject allegations they acted in breach of fiduciary duties
They say they acted in the best interests of residents and that their conscience is clear
By Charissa Yong, Political Correspondent, The Straits Times, 27 Jul 2017
The three Workers' Party MPs at the centre of the lawsuit brought by Aljunied-Hougang Town Council (AHTC) yesterday rejected the allegations that they acted in breach of their fiduciary duties.
"My conscience is clear. We acted in good faith and in the best interests of our residents, and there were no dishonest intentions," party chief Low Thia Khiang told reporters before his Meet-the-People Session.
He added: "The residents can see for themselves. I have been in politics for more than 20 years, and I think people know me."
Mr Low, AHTC vice-chairman Sylvia Lim and chairman Pritam Singh said they would contest the lawsuit, which was brought against them by an independent panel on behalf of the town council.
It had been served on them the night before, following the work of the panel which had been tasked with looking into improper payments made by AHTC.
The lawsuit alleged, among other things, that Mr Low and Ms Lim acted in breach of their fiduciary duties and duties of care and skill owed to AHTC.
It also accused them of setting up a faulty system which allowed the appointment of FM Solutions and Services (FMSS), the town council's former managing agent firm, despite conflicts of interest.
Ms Lim said they welcomed the opportunity to explain to the court and the public the reasons behind their decisions.
She said the town councillors "still stand firm today that what we did was in the best interests of the council, based on the information we had at the time".
Asked about the $33 million in payments which the independent panel wants them to account for, Ms Lim said this was the total value of payments made.
"We reject the allegations that these payments were unlawful and wrong, and it will be up to the court to determine what they think is a fair and correct decision," she said.
If the court finds the MPs liable to pay any amount, they will have to see if they are able to do so, said Ms Lim, who is AHTC's vice-chairman.
"If we don't, we may have to consider other options, perhaps raising funds. If we are not able to... the law will take its course," she added.
The lawsuit also alleged that the town councillors awarded contracts to an architectural firm that put in a higher bid without proper justification, in breach of duties owed to AHTC.
In a statement sent earlier yesterday, the three MPs rejected all the allegations, saying: "We have not benefited a single cent.
"In the course of these proceedings, we will be furnishing more information so that all concerned will be clearer on the issues and why we made the decisions and acted as we did," they said in the statement.
Law firm Tan Rajah & Cheah has been engaged to defend the claim for the three MPs, as well as two other defendants, Mr Chua Zhi Hon and Mr Kenneth Foo, who are appointed members of the town council.
Ms Lim said they will file further court documents for the case in the next few weeks, including a substantive defence three weeks from now.
The last two defendants are Ms How Weng Fan, who is the owner of FMSS, and FMSS itself.
The MPs did not want to get into further details like their last contact with Ms How, or the merits of their case, saying it is before the court.
The independent panel has asked Mr Low and Ms Lim, Ms How and FMSS to account for more than $33 million, for payments made to FMSS from July 2011 to July 2015.
It contends that the payments are void and is claiming equitable compensation for any losses suffered.
Last night, Mr Low rejected suggestions that the suit could damage the party's reputation or his internal standing within the party.
"I don't think Singaporeans have lost faith in us, we acted in good faith, I believe Singaporeans will trust us," he said.
Adding that he does not really care about his own popularity, he said it is important to keep one's conscience clear in politics.
Mr Low said: "If we lose our seats, the younger generation of the WP will be prepared to come forward to serve Singaporeans, so I am not worried."
AHTC lawsuit: We acted in good faith, says Low Thia Khiang
By Charissa Yong, The Straits Times, 27 Jul 2017
Workers' Party MPs Low Thia Khiang, Sylvia Lim and Pritam Singh responded to questions on the lawsuit against them. Here is an edited extract of their press conference, held before a Meet-the-People Session at Mr Low's Bedok Reservoir ward in Aljunied GRC
WILL THE SUIT ERODE TRUST IN THE TOWN COUNCIL AND WP?
Mr Low We leave it to the residents and voters of Singapore to make their judgment. I say once again here, my conscience is clear. We acted in good faith.
ON NEEDING TO ACCOUNT FOR AN AMOUNT OF $33 MILLION.
Ms Lim I think that is calculated to be the total value of the payments made. But as we said earlier, we reject the allegations that these payments were unlawful and wrong.
WHAT IF THEY ARE FOUND LIABLE FOR ANY AMOUNTS?
Ms Lim We have to look into the amount and see if we have the means to pay. If we don't, we may have to consider other options, perhaps raising funds. If we are not able to, I suppose the law will take its course.
ANY CONCERNS THAT A SUCCESSFUL LAWSUIT COULD SEE THEM LOSE THEIR SEATS IN PARLIAMENT?
Ms Lim We are aware of what the law provides for. But we welcome this opportunity to actually go into detail to explain to the court and to the public why we made certain decisions at that point in time... Of what the considerations were, and why we still stand firm today that what we did was in the best interests of the council based on the information we had at the time.
MR PRITAM SINGH'S PERSPECTIVE?
Mr Singh It is my firm conviction that we acted in good faith... We are not in politics for the purposes of enriching ourselves and things of that nature.
ON WHAT CAN BE DONE TO RESTORE THE FAITH AND CONFIDENCE OF CONSTITUENTS.
Mr Low I don't think Singaporeans have lost faith in us. We acted in good faith. I believe Singaporeans will trust us. (The) 2015 election was a testimony to us. It was worse than this. MND (Ministry of National Development) or HDB was coming up with adverse statements during the election. And the PAP (People's Action Party) brought the issue to the ground. They distributed pamphlets door to door. But we are prepared to be judged by the people... I have been in politics for more than 20 years. I think people know me.
4 committee members accused of breaching financial rulesBy Danson Cheong, The Straits Times, 27 Jul 2017
The members of Aljunied-Hougang Town Council's (AHTC) tenders and contracts committee - Mr Pritam Singh, Ms Sylvia Lim, Mr Chua Zhi Hon and Mr Kenneth Foo - had breached Town Councils Financial Rules for 10 construction projects costing between $71,500 and $1,668,711, a lawsuit against the members claims.
They had failed to call a tender for each project, and did not accept the lowest bid for seven projects, according to a statement of claim filed by AHTC at the High Court.
The Town Councils Financial Rules stipulate that tenders must be called for projects above $70,000 in value, and the reasons for not accepting the lowest bid must be spelt out carefully.
The tenders and contracts committee was chaired by Mr Singh, who is also the chairman of AHTC. Mr Chua was a former member of the Workers' Party (WP) Youth Wing executive committee, while Mr Foo was WP deputy organising secretary and a candidate in Nee Soon GRC in the 2015 General Election.
Outlining why it wants to take the four defendants to task, AHTC said that instead of issuing separate tenders for each project, the council had invited a tender for consultants on a "fixed fee basis".
These pre-approved consultants would be on a panel, and the town council would then choose from this panel consultants to manage projects.
The town council selected two architects - LST Architects and Design Metabolists - to provide services in such a manner.
The statement said that despite having decided to select consultants in this manner, the council was still required to pick the "lowest-priced consultant".
It pointed out that in all 10 projects, LST Architects was engaged despite it charging higher fees in seven of them.
In one instance, where a $1,668,711 contract was awarded to LST Architects, Design Metabolists had submitted a bid of $210,000.
AHTC said in its statement that the higher-priced contracts were awarded "without adequate justification and/or recording the circumstances and reasons for doing so".
The additional cost of hiring LST Architects over Design Metabolists amounted to $2,794,560. AHTC alleges that the committee members had breached their duty to the town council as they had an obligation to comply with the Town Councils Financial Rules. It is demanding damages or "equitable compensation" from them for their failure to call separate tenders for the 10 projects.
Alternatively, the town council is demanding damages of $2,794,560 - which is the additional amount that AHTC spent when it hired LST Architects instead of Design Metabolists.
HDB seeks advice from A-G's Chambers
By Royston Sim, Assistant Political Editor, The Straits Times, 27 Jul 2017
The Housing Board has asked the Attorney-General's Chambers for advice on the lawsuit that the Aljunied- Hougang Town Council (AHTC) has filed against its town councillors.
In a statement yesterday, HDB said it has received notice about the claim brought by an independent panel appointed by AHTC to help recover improper past payments.
HDB said it is studying the claim, and noted that the claim document sets out allegations of breaches of fiduciary duties and improper payments of town council funds, among other things.
AHTC has alleged that all payments it made to its then managing agent, FM Solutions and Services (FMSS), and service provider, FM Solutions and Integrated Services (FMSI), are null and void as its town councillors had acted in breach of their fiduciary duties.
It is demanding that Workers' Party (WP) chief Low Thia Khiang; town council vice-chairman Sylvia Lim; Ms How Weng Fan, owner of FMSS; and FMSS give an account of $33,717,535 in payments made to FMSS and FMSI from July 15, 2011, to July 14, 2015. If any sum has been wrongfully paid out, AHTC wants "equitable compensation" for it.
In its statement, HDB said the claim document contains "serious allegations of misconduct by various defendants".
Mr Low, Ms Lim and town council chairman Pritam Singh yesterday rejected the allegations that they acted in breach of their fiduciary duties. In a statement, the WP MPs said they acted in good faith and in the best interests of residents, and would contest the lawsuit.
Citing the document, HDB said: "Ms Sylvia Lim and Mr Low Thia Khiang misled the town council and gave false or inadequate reasons to justify a waiver of tender and secure FMSS' appointment as managing agent."
It also highlighted how the claim said the appointments of FMSS and FMSI were made "in bad faith" for improper purposes, and were "so unreasonable" that no reasonable town councillor would have made the same decision.
HDB noted that the independent panel is asking the court to rescind the contracts with FMSS and FMSI, and is seeking compensation for monies wrongfully paid out.
This is to be taken as the entire sum of $33,717,535, subject to Ms Lim, Mr Low, FMSS, FMSI or Ms How showing which payments were lawful, it said.
Independent panel wants to put AHTC's arbitration case on hold
By Charissa Yong, The Straits Times, 27 Jul 2017
The independent panel bringing a lawsuit against members of the Aljunied-Hougang Town Council (AHTC) also wants to suspend an arbitration case between AHTC and its former managing agent firm.
The arbitration is over payments that the firm, FM Solutions and Services (FMSS), is claiming from AHTC for services it provided under two contracts.
The first contract was from July 2011 to July 2012, and the second from July 2012 to July 2015.
Soon after the second contract ended, FMSS sent the town council a letter of demand asking for the money it said it was owed.
The parties entered mediation talks in October 2015, and arbitration proceedings after that when mediation did not succeed.
Last Friday, the independent panel, which was appointed by AHTC in February and is acting in its name, filed a writ of summons seeking a court order for arbitration to be put on hold.
In a separate lawsuit, the panel alleged that all payments made to FMSS are void, as town councillors Low Thia Khiang and Sylvia Lim had acted in breach of their fiduciary duties in signing the contracts.
The panel also alleged that the FMSS contracts themselves are void and should be rescinded.
The Straits Times understands that this is the reason why the panel is seeking a stay on the arbitration.
According to case details seen by ST, the pre-trial conference for this matter will be on Aug 10.
AHTC lawsuit raises questions over liability, implications for Workers' Party
By Rachel Au-Yong and Priscilla Goy, The Straits Times, 27 Jul 2017
The legal action taken against three Workers' Party (WP) MPs and several others in relation to more than $33 million paid to Aljunied-Hougang Town Council (AHTC)'s former managing agent FMSS and service provider FMSI will take time to play out, observers said yesterday.
But questions have been raised as to what happens if the defendants are found to be liable for improper payments, how much they might have to pay and the implications if they are unable to do so - including on the WP's future.
Singapore Management University law don Eugene Tan said: "The lawsuit could force those being sued to enter into serious negotiations for an equitable restitution that is acceptable to AHTC."
Observers say the necessary recovery of payments will likely be determined in court, and it is too early to say what can be recovered.
If they are indeed found liable, the defendants would have to compensate AHTC. If they cannot pay up, they risk being declared bankrupt and having their assets seized, lawyers interviewed said.
Mr Rajan Chettiar of Rajan Chettiar LLP said this means for those living in private property, their homes may be subject to seizure. "They can't borrow from banks and can't travel freely," he added.
TSMP Law joint managing director and senior counsel Thio Shen Yi said bankruptcy "would be an added problem for MPs, who would lose their seats".
But he said: "The onus is on the town council (to make the case) that the various members acted dishonourably. It is possible to act in good faith and still screw up."
Observers said the legal action was to be expected, given that questions had been raised over improper payments by the town councillors since the Auditor-General issued a special report in February 2015 on lapses and conflicts of interest in AHTC's accounts.
The town council has been unable to submit a clean set of accounts since it was formed after WP won Aljunied GRC in the 2011 General Election.
As a result, Deputy Prime Minister Tharman Shanmugaratnam in February 2014 directed the Auditor-General to do a special audit of its FY2012/2013 accounts. Last October, audit firm KPMG also noted that over $33 million in payments to FM Solutions and Services (FMSS) and FM Solutions and Integrated Services (FMSI) were co-signed by persons with conflict of interest or FMSS employees.
Associate Professor Lawrence Loh of the National University of Singapore's Business School said: "The lawsuit is a natural sequence of procedures that follow from the unique circumstances in the awarding of contracts by AHTC to its managing agent and service provider."
As for the political impact on the WP, Associate Professor Tan said the lawsuit is "another milestone in the long-running saga". He added: "It is not a new set of allegations, so the political impact of the suit is likely to be minimal."
However, Institute of Policy Studies deputy director Gillian Koh said the judgment will be "far more consequential" with regard to how people see the WP and its leaders than any previous actions.
There will be some who will insist the lawsuit is politically motivated, she noted. "But to do that, you would also have to argue that the WP's auditors, KPMG and the WP-appointed independent panel led by Mr Philip Jeyaretnam have also been acting with political motivation - a notion that is quite audacious and fanciful."
AHTC takes legal action against Workers' Party town councillors over past paymentsIndependent panel seeking to recover AHTC overpayments is behind lawsuitBy Charissa Yong and Danson Cheong,
The Straits Times, 26 Jul 2017
Aljunied-Hougang Town Council (AHTC), which had appointed an independent panel to help recover improper payments, is taking several of its town councillors to court.
They include Workers' Party chief Low Thia Khiang, as well as the town council's chairman Pritam Singh and vice-chairman Sylvia Lim.
The Straits Times understands the legal action was initiated as part of the work of the panel tasked with looking into improper payments made by AHTC.
The three WP MPs were served yesterday evening with a statement of claim against them by AHTC, Ms Lim confirmed last night.
"We will respond further shortly, after we have studied the claim," she told The Straits Times.
The independent panel has the power to commence legal action on behalf of the town council for overpayments and payments without proper certification of work being done, among other things. This can include mediation, arbitration and other court proceedings.
The panel's other powers include making demands and coming to settlements on behalf of AHTC.
The Housing Board had asked AHTC to appoint a third party to recover the improper payments made from town council funds.
The independent panel appointed in February is chaired by Senior Counsel Philip Jeyaretnam. Its other members are Senior Counsel N. Sreenivasan and KPMG managing partner Ong Pang Thye.
When contacted, Mr Jeyaretnam and Mr Sreenivasan declined to comment on the lawsuit. Mr Ong could not be reached for comment. Mr Daryl Fong of Shook Lin & Bok, who was named as AHTC's lawyer in case details seen by The Straits Times, also declined to comment.
The writ of summons was filed last Friday by the town council in the High Court, over a breach of fiduciary duties. According to case details, AHTC is claiming $622,593.78 in liquidated claims from multiple parties, as well as $4,167,501.71 in unliquidated claims. Additional sums may be involved.
Besides the three Aljunied GRC MPs, other defendants named are: Mr Chua Zhi Hon, a former member of the WP Youth Wing executive committee; Mr Kenneth Foo, deputy organising secretary of the WP and WP candidate in Nee Soon GRC in the 2015 General Election; Ms How Weng Fan, owner of the town council's former managing agent firm FM Solutions and Services (FMSS); and FMSS.
A pre-trial conference date of Aug 31 has been listed.
Besides this case, AHTC also filed another writ of summons in the High Court against FMSS last Friday. This was in relation to an arbitration case over a financial dispute emerging from the lapses at the town council.
In a report last year, audit firm KPMG found that governance lapses at AHTC between 2011 and 2015 had put public funds running into the millions of dollars at risk of improper use.
It traced some of the improper payments to AHTC's then managing agent FMSS.
Ms How and her late husband, Mr Danny Loh, were owners of FMSS and held key management and financial control positions in the town council at the same time.
This meant that they effectively approved and made payments to themselves when they paid FMSS, the KPMG report found. It also raised the possibility of civil and criminal liabilities.
The report was part of the ongoing audit of AHTC following lapses flagged by its own auditors as well as by the Auditor-General's Office in a special report in February 2015.