Judgement reserved for MND’s appeal on AHPETC ruling
TODAY file photo
SINGAPORE — Although the Town Councils Act does not expressly state if the courts have the power to appoint independent accountants to a town council, it gives the courts powers to enforce — “as it thinks proper” — a town council to perform its duties, the Attorney-General’s Chambers (AGC) argued today.
The AGC, representing the Ministry of National Development (MND), was appealing against an earlier decision dismissing its application for independent accountants to be appointed to Aljunied-Hougang-Punggol East Town Council (AHPETC), after an audit of the town council’s books uncovered lapses in governance and compliance. The Court of Appeal, comprising Chief Justice Sundaresh Menon and Judges of Appeal Chao Hick Tin and Andrew Phang, reserved judgement today (Aug 3).
During the hearing, the AGC’s deputy chief counsel for litigation Aurill Kam reiterated that the law requires town councils to keep proper accounts and records of their transactions and affairs. Sinking Funds must also be separately maintained by town councils for the improvement and long-term maintenance of properties, she added.
On both fronts, AHPETC, which is run by the Workers’ Party (WP), had been found wanting, said Ms Kam, who added that the courts have the discretion to enforce the town council to perform its duties “as it thinks proper”.
A High Court had rejected this in May, ruling that the ministry did not establish the legal bases for such an order, even though “it is clear there are grave and serious questions” in the town council in relation to its books and the validity and propriety of payments AHPETC had previously made to related parties. The MND has withheld two years of government grants, totalling about S$14 million, to AHPETC as it has said it has no guarantee the money would be used properly.
Today, CJ Menon asked if the independent accountants, if they are appointed, would be agents of the National Development Minister, Housing and Development Board (HDB), or the town council. In response, Ms Kam said the accountants would be “officers of the court” and would “act in the interest of all parties”.
AHPETC’s lawyer Peter Low, however, disagreed that the law does not provide for the courts to appoint independent accountants to town councils. Under the Town Councils Act, the cou rts’ ambit only extends to compelling a town council to perform its duties, he said. For example, if a town council does not carry out its duty to make timely Sinking Fund transfers, a resident can apply to the courts to compel the town council to do so, but no further, argued Mr Low.
The lawyer also submitted that the court does not have the power to compel the town council to appoint independent accountants to collect information, investigate past payments made by the town council or take out recovery actions for past payment because there is no such provision in the Town Councils Act.
Last month, the HDB also applied to the Court of Appeal to be a co-plaintiff in this appeal. Ms Kam said today the HDB “has an interest in the capacity of the owner of common property”. For instance, unoccupied flats are still owned by the HDB as there are no tenants to pay services and conservancy charges, she said.
AHPETC chairman Sylvia Lim attended the hearing today along with her WP colleagues Pritam Singh and Faisal Manap. Ms Lim declined comment after the hearing while Mr Singh said: “Judgment is reserved. We leave the matter in the good hands of the courts.”
