We are pleased to note that the Court of Appeal (CA) has found that the Town Councillors acted in good faith and in the execution of the Town Councils Act and the Town Councils Financial Rules in awarding the MA and EMSU contracts to FM Solutions & Services (FMSS) and in awarding contracts to certain third party contractors.

 The CA held that there was “simply no basis for this court to find that the Town Councillors did not act in good faith, or even that they had breached their duty of care, for considering and ultimately deciding that they were better off with a new MA services provider who could be trusted to work with them in a committed way”.  In making this finding, the CA took into account the circumstances we faced in 2011 when we first won the elections in Aljunied GRC and why we waived the tender of the MA contract in 2011.

 The CA has sought further submissions in respect of two breaches that it has found – one relating to gross negligence of the Town Councillors in relation to the payments process and the other in relation to a breach of duty of skill and care on the part of Ms Sylvia Lim for the award of a contract to a particular third party contractor.  In respect of both these claims, for which damages will eventually be assessed in a subsequent hearing, the burden remains on the Town Councils to prove their loss.  In particular on the damages for the breach relating to the payments process, the CA has observed that the Town Councils’ case appears to have been constructed on the perceived risks inherent in the payments process.  Further, the CA also stated that it is not clear that Aljunied-Hougang Town Council or Sengkang Town Council have provided evidence of any instance where the breaches resulted in improper payments.

We are studying the CA judgment released earlier today with our lawyers, and will take advice on the next steps.

 We take this opportunity to once again thank members of public and supporters who have stood by us throughout this case. We also thank our lawyers, Messrs Tan Rajah & Cheah, for their tireless efforts and professionalism.

SYLVIA LIM, LOW THIA KHIANG & PRITAM SINGH

Read the full judgment here