The former Aljunied-Hougang-Punggol East town council, which was run by the Workers' Party, is accused of opting for more expensive contracts instead of extending existing contracts at much lower prices when they ran the constituency.
According to lawyers acting on behalf of Pasir Ris Punggol Town Council, this led to an additional $479,000 in costs for the management of Punggol East constituency alone.
In a suit filed in the High Court against WP town councillors and WP's managing agent FM Solutions and Services, the lawyers have sought to show this was a recurring pattern in WP's management of AHPETC in an attempt to stick charges of breaching their fiduciary duties and making allegedly improper payment to contractors.
PRPTC is represented by Drew & Napier.
Separately, Aljunied Hougang Town Council's independent panel has also sued the same town councillors and its managing agent for similar reasons over $33 million dollars worth of contracts to FMSS.
AHTC wants the town councillors to account for the sum and repay any money which was wrongfully paid out.
The Workers' Party has denied all charges and will be defending their case.