Summary Of LTK’s Cross-Examination
SUMMARY OF LTK’S CROSS-EXAMINATION
Low
Thia Khiang (LTK) was cross-examined by Mr Davinder Singh (DS).
He
made a number of serious admissions and concessions on
oath.
First, LTK conceded
that, right from the start, he had decided that the incumbent MA,
CPG, would be replaced with FMSS.
(1) This
was decided by Monday, 9 May 2011 – the first working day after GE
2011 – when LTK emailed the other elected MPs to
inform them that he had “communicated to How” their decision that they “will
appoint managing agent … instead of
self-management”. This meant FMSS.
(2) Three
days later, on 12 May 2011, LTK admitted that, at his suggestion, How
applied to ACRA to set up FMSS (FMSS was officially incorporated on 15 May
2011). This was pursuant to the plan on 9 May 2011.
(3) On
the next day (i.e. 13 May 2011), How, as “instructed by the Elected Members
of Parliament”, wrote to CPG, asking to take over the management
of the TC and also to hire CPG’s staff.
LTK
conceded that all the above events occurred even before he
met CPG for the first time on 30 May 2011. He
also confirmed that CPG had
only indicated that it wished to be released as
MA at this meeting and not earlier. However, by that time, LTK had already decided
that CPG would go.
Second,
LTK accepted that a “responsible” and “honest” Town
Councillor would have reviewed CPG’s MA contract before releasing
or replacing the MA:
(1) However,
he admitted that he did not do so.
(2) He also did not even check
whether CPG was entitled to terminate the MA contract.
Clearly, whether CPG could be terminated and wished to carry on, were not
relevant to the plan to install FMSS.
Third,
LTK conceded that he did not perform any due diligence before deciding to
appoint FMSS. He failed to:
(1) Call
for any documents, such as the CPG contract, and thus had no idea what the CPG
contract provided.
(2) Ask
to be briefed about the CPG contract;
(3) Ask
that an assessment be done on CPG or FMSS; or
(4) Consider
two other companies which had approached him to take over as
MA. He dismissed them out of hand.
Fourth,
LTK admitted that FMSS had no relevant experience (nor
the requisite employees) to run a town
of AHTC’s size. He knew this at the time he asked How /
FMSS to take over as MA. He also knew that in contrast,
CPG was a well-established and experienced MA company. Yet, he still
decided to appoint FMSS.
Fifth, LTK
conceded that by allowing How to incorporate FMSS (instead of
direct management), she would, in addition
to her salary (as GM), also enjoy a “profit element”.
He would pay her twice. And also, How would keep all the
profits.
The
above plainly raises questions as to whether the appointment of FMSS to replace
CPG as MA was done at the residents’ expense and without proper regard as to
how public monies are spent.
As DS
suggested, residents’ monies were being used to benefit WP’s friends, as well
as to “fund start-up for the benefit of opposition towns”.
What
is most telling is that LTK himself admitted that he has acted irresponsibly,
without conducting proper checks and due diligence.
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