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.