Confused over the long-drawn 'AHPETC to AHTC' saga?
1. FMSS vs AHTC: Why there is an arbitration process
A few days after WP won Aljunied GRC in 2011, FMSS was incorporated to manage WP-run town council.
Relationship between WP-run town council and FMSS soured after the damning AGO Report on AHPETC in February 2015.
Shortly after FMSS' contract with AHPETC expired in 2015, FMSS issued a legal letter of demand for payment of $3.5 million.
Other than saying that FMSS and AHTC would resolve the issue through mediation, WP has kept mum about its progress. But we now know that they have not managed to resolve this and arbitration was still ongoing.
2. INDEPENDENT PANEL
After many years of pushing the blame everywhere except themselves, and one damning report after another (own auditors, AGO, KPMG, PwC), WP finally appointed an independent panel (at the insistence of HDB) to look into improper and over payments and and to recover money improperly paid.
The three eminent persons appointed by WP to the panel are: Senior Counsel Philip Jeyaretnam, Senior Counsel N Sreenivasan and Mr Ong Pang Thye, a managing partner of KPMG.
The independent panel will act on behalf of the town council.
3. AHTC vs Town Councillors
The independent panel filed a lawsuit on behalf of AHTC against their own town councillors, namely, Low Thia Khiang, Sylvia Lim, Pritam Singh.
Also being sued are Chua Zhi Hon and Kenneth Foo, both WP members, and How Weng Fan, owner of FMSS.
The independent panel is asking to rescind the contracts with FMSS and FMSI, and is seeking compensation of more than S$33 million which it said was wrongfully paid out to the companies – subject to Ms Lim, Mr Low, FMSS, FMSI or Ms How showing which payments were lawful.
4. PRPTC vs AHTC's town councilors
Following the lawsuit brought by the independent panel against AHTC's town councillors and related parties, Pasir Ris Punggol Town Council is suing the same people to recover $479,000 for Punggol East SMC when it was under WP's management.
5. Why arbitration process is suspended.
This is no need for any arbitration process over how much is owed to FMSS since the lawsuit brought by the independent panel on behalf of AHTC is seeking to void all payments to FMSS.