MND's 27 May 2015 Response to Media Queries on High Court Judgement
May 27, 2015
MND notes that the Court has agreed with MND’s concerns about AHPETC. The Court said there were “grave and serious questions” that have been raised regarding the state of AHPETC’s accounts and the validity and propriety of payments previously made by AHPETC to related parties (amounting to $25.9 million), and that “there have also been numerous breaches of the provisions” of the Town Councils Act and Town Councils Financial Rules. The Court added that the TC’s conduct was the height of financial irresponsibility.
The Judge also stated that if AHPETC was a managing corporation subject to the Building Maintenance and Strata Management Act (BMSMA), he would have no doubt that AHPETC or its officers will be exposed to the “possibility of civil liability… or, in an extreme scenario, criminal liability”.
The Court added that it was a travesty for AHPETC to have ignored their duties and obligations.
And that the TC was to be blamed for not accepting MND’s offer to release the grant.
The Court said that HDB and residents could have brought the action, but not MND itself. The Court has also noted that MND can require the TC to appoint Independent Accountants (as a condition for release of grants), without having to get a court order. (See Annex for summary of findings and observations in judgement).
MND will study the Judgement carefully and consider what the next steps should be.