Squeaky Hammer

FMSS’ PROFITS VS AHTC’S DEFICITS FMSS’ How Weng Fan (How) was cross-examined by Mr Davinder Singh (DS) today. For those unfamiliar with FMSS, this was a start-up MA company started by How and her late husband, Danny Loh (Loh), both WP supporters, in May 2011. FMSS was awarded two MA contracts by the WP-controlled AHTC despite lacking experience running a GRC. The first 1-year MA contract with a value of about S$5 million was awarded to FMSS by waiver of tender.   The second 3-year MA contract with a value of about S$16 million was awarded by tender to FMSS, though FMSS was the sole bidder.   These figures exclude separate (and additional) project management fees paid by AHTC to FMSS. During the earlier part of the TC trial, we learnt from the WP MPs that FMSS charged more than CPG, the incumbent MA, even though the FMSS contract was stated to be “ at the prevailing Managing Agent’s fees and fees structure as per the existing Managing Agent contract ” .

Day 16 – Cross-Examination of Kenneth Foo (1)         Kenneth Foo admitted that: (a)         Improper arrangements were entered into without proper disclosures to the Town Council. (b)         Payments were made to FMSS without knowledge of the Town Councillors, including himself. (c)         He was not invited to meetings of the tender evaluation committee despite being a member. (d)         He agrees that looking back, he would have done things differently. (e)         TC could have considered direct management for AHTC, but that was not done.             [Background: Kenneth Foo agreed Hougang Town Council was directly managed with How leading it.   Direct management would have helped saved AHTC money as it would not have to pay FMSS an additional profit element. ] (f)          It was possible to conduct a tender for the 1 st MA contract and 1 st EMSU contract, and this should have been done for Aljunied residents’ benefit. (g)         Giving a