Workers’ Party leaders donate S$57,727 legal cost balance to AHTC and SKTC

SINGAPORE: The three senior leaders of the Workers’ Party have announced that more than S$57,700 in remaining legal cost awards has been donated back to the town councils that were once their opponents in a long-running legal case. In a joint statement issued on their blog In Good Faith on 2 October 2025, Secretary-General Pritam Singh, Chair Sylvia Lim and former party chief Low Thia Khiang confirmed the donation of S$26,958.52 to Aljunied-Hougang Town Council (AHTC) and S$30,768.51 to Sengkang Town Council (SKTC). The funds represented the unspent balance from court-ordered costs that had originally been awarded to them following their successful appeal in November 2023.

Details of the donation

The leaders explained that of the S$230,701.28 awarded by the Court of Appeal, S$172,983.97 had been used to settle their lawyers’ final bills. A balance of S$57,727.03 remained, which they decided to donate in proportion to the sums originally ordered: 46.7 per cent to AHTC and 53.3 per cent to SKTC. They emphasised that while these funds could have reimbursed part of the S$1.4 million they personally paid towards their legal fees, they instead chose to return the money to the councils. Separately, the trio also announced the closure of a joint bank account established in 2018 to facilitate fundraising for their legal defence. The remaining balance of S$5,826.14 was donated in full to the WP Community Fund, a registered charity supporting families in need. The leaders reiterated in their statement that the lawsuits, which began in 2017, had concluded in July 2024 through mediation on a “drop-hands” basis, with all parties discontinuing claims and bearing their own costs. “The proceedings have taken seven years to conclude. We thank everyone who has, in one way or another, walked with us through this episode,” the statement said.

Background of the lawsuits

The legal saga began with accusations of financial mismanagement and misuse of public funds by the Workers’ Party-run town councils since it took over Aljunied Town Council in 2011 and, subsequently, Punggol-East SMC in 2013. These suits, initiated by an independent panel in July 2017, targeted eight defendants, including the Workers’ Party leaders and their former managing agent FMSS, along with four other former town councillors or employees — saying they had breached their fiduciary duties. Despite being held liable for damages in the High Court in 2019, the town councillors largely succeeded in their appeal. The lawsuits led to AHTC and SKTC being ordered to pay approximately S$388,800 in costs and disbursements for the appeals. The breakdown of the S$388,800 in costs reveals that AHTC was required to pay S$176,241.11 for two appeals, while SKTC had to pay S$212,543.52 for three appeals.

Court of Appeal’s rulings

In a comprehensive 38-page judgment issued on 29 November 2023, the Court of Appeal elucidated the reasons behind mandating the payment of costs by the two councils. The court clarified that costs are typically granted to the prevailing party. In this instance, the town councillors and employees achieved substantial success in their appeals, effectively overturning multiple findings by the trial judge. The five-judge panel, including Chief Justice Sundaresh Menon, Justice Judith Prakash, Justice Tay Yong Kwang, Judge of the Appellate Division Woo Bih Li, and Senior Judge Andrew Phang, noted that SKTC experienced greater success in the appeals compared to AHTC. The judgment provided vindication for the Workers’ Party and its senior members from the various allegations made against them, including those from the People’s Action Party. The court ruled that the town councillors and employees did not owe fiduciary duties to AHTC or SKTC and had acted in good faith when awarding the contracts. The settlement marks the end of a prolonged and high-profile legal battle that has seen significant legal and financial scrutiny of the Workers’ Party and its management of town council funds.