Workers' Party Leaders Close Fundraising Account, Donate Remaining Funds
Workers' Party (WP) leaders, namely Pritam Singh, Sylvia Lim, and Low Thia Khiang, have officially closed the joint bank account that was initially established to collect public donations for their long-running civil suits. The remaining balance has been donated to charity following an out-of-court settlement.
Account Closure and Charitable Donation
In an announcement posted on their fundraising blog on October 2nd, the WP leaders stated that the conclusion of the court cases in July 2024, resulting from an out-of-court settlement, eliminated the need for the bank account's continued maintenance. The remaining balance of $5,826.14 was donated to the WP Community Fund, a registered charity established by the WP to support families in need.
“The court proceedings have taken seven years to conclude,” they said. “We thank everyone who has, in one way or another, walked with us through this episode.”
Donation to Town Councils
In a separate action, the same three WP leaders announced that they had donated over $57,000 to the Aljunied-Hougang Town Council (AHTC) and the Sengkang Town Council (SKTC). This sum represented a portion of the over $230,000 in costs awarded to the trio by the Court of Appeal in November 2023.
This donation consists of funds remaining after about $173,000 was used for their lawyers’ bills from November 2023 to the conclusion of their work.
Legal Fees and Reimbursement
The WP leaders emphasized that they had personally contributed over $1.4 million towards the $3.1 million in legal fees accumulated since the lawsuits began in 2017. Despite being entitled to retain the $57,000 as partial reimbursement, they chose to donate the money to the two town councils instead.
Background of the Legal Saga
The lengthy legal battle traces back to May 2011, when the WP achieved a landmark victory by winning Aljunied GRC, marking the first time an opposition party secured a group representation constituency. AHTC was subsequently formed to manage the Aljunied and Hougang constituencies, and the town council appointed FM Solutions & Services (FMSS) as its managing agent without a public tender.
Audits and Improper Payments
Following a 2015 audit by the Auditor-General’s Office, which revealed several lapses in AHTC's governance and compliance, the town council was instructed to appoint accountants to rectify the issues. A subsequent audit by KPMG in 2016 uncovered that AHTC had made $33.7 million in improper payments to FMSS and its subsidiary.
Court Proceedings and Lawsuits
In 2017, AHTC, through an independent panel, initiated court proceedings against several WP leaders and town councillors concerning the improper payments. The town council also filed a lawsuit against FMSS. A related suit was initiated by Pasir Ris-Punggol Town Council for losses allegedly incurred while the WP managed Punggol East, which it had won in the 2013 by-election but later ceded back to the PAP in the 2015 general election.
Sengkang Town Council's Involvement
SKTC assumed this lawsuit after the WP won Sengkang GRC in the 2020 General Election, as Punggol East had become part of Sengkang GRC due to changes in electoral boundaries.
Public Fundraising and Court Rulings
In October 2018, the trial commenced, and the WP leaders launched a website appealing to the public for financial assistance to cover their legal expenses. They stated that they had already paid their lawyers close to $600,000 before the trial even began. Within three days, they successfully raised over $1 million from the public and closed their appeal.
Out-of-Court Settlement
The Court of Appeal ruled in November 2022 that the WP leaders and town councillors did not owe AHTC fiduciary duties and had acted in good faith in hiring FMSS. However, the court also found the town councillors negligent for allowing conflicts of interest to persist at AHTC. In July 2024, the WP leaders, along with AHTC and SKTC, reached an out-of-court settlement following mediation.
