SINGAPORE: The managing agent embroiled in the Aljunied Hougang Town Council (AHTC) case FM Solutions & Services (FMSS), and its director, Ms How Weng Fan, are suing their insurer for failing to indemnify them or make any payments over the lawsuits.

Ms How is also suing the insurer Allied World Assurance Company in the capacity of her late husband, Mr Danny Loh. According to the plaintiffs, Allied World Assurance Company has failed or refused to indemnify them or pay them as provided for under their insurance contract after the plaintiffs were sued by AHTC and Pasir Ris-Punggol Town Council (PRPTC). FMSS, Ms How, and Mr Loh signed an insurance contract with Allied World Assurance Company in August 2016, CNA article reports.

The insurer was supposed to compensate them against liability at law for money to be paid under judgment, award or settlement arising from legal proceedings brought by third parties against them, resulting from any civil liability incurred in connection to the property management or project management services they provided.

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The insurance company was also supposed to pay all other costs and expenses incurred by the plaintiffs in such legal proceedings, such as the legal costs of defending themselves, said the plaintiffs.

At the end of November 2023, the Court said that Workers’ Party (WP) chief Pritam Singh, along with party chair Sylvia Lim, former secretary-general Low Thia Khiang, and others, have succeeded substantially in their appeals.

FMSS, Ms How and Mr Loh are all defendants in the civil suits brought by AHTC and Pasir Ris-Punggol Town Council (later handed over to Sengkang Town Council) against Workers’ Party leaders and former AHTC town councillors for the alleged misuse of millions in town council funds.

The eight defendants are WP leaders, Ms Sylvia Lim, Mr Low Thia Khiang, Mr Pritam Singh, FMSS, Ms How, Mr Loh and then-town councillors Mr Chua Zhi Hon and Mr Kenneth Foo Seck Guan.

The Town Councils that sued the WP leaders and others have now been ordered to pay around S$388,800 in costs and disbursements over the appeals in the case.

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The Court released a judgment explaining why Aljunied-Hougang Town Council (AHTC) and Sengkang Town Council (SKTC) are now required to pay costs.

The AHTC case began in 2013 after FM Solutions and Services (FMSS) was appointed as managing agent because FMSS had been founded by WP supporter Ms How Weng Fan; this was questioned due to a possible conflict of interest.

The next step for the case is for damages to be assessed for these negligent breaches – parties are still at the pre-trial conference stage. /TISG

Read related: AHTC, SKTC ordered to pay WP leaders and others S$388,800 in costs & disbursements