SINGAPORE — The dispute over who wanted to terminate the system first appears to be due to “a different understanding” of the execution of the termination clause in 2011 by the then-Aljunied Hougang Town Council (AHTC) and Action Information Management (AIM), a People’s Action Party-owned company.
The National Development Ministry (MND) Review Team said this, as it yesterday made public the contents of letters exchanged between the town council and AIM.
AIM, the Workers’ Party — which ran AHTC — and the PAP town councils had produced letters to back up their cases as a war of words broke out late last year over who was at fault.
Before 10 June, 2011, the MND Review Team said AHTC was given to understand, by its then-interim Secretary, that AIM would be terminating the Town Council Management System (TCMS) software under the terms of the termination clause.
AHTC had, therefore, planned to upscale its own system which it had used for the former Hougang Town Council, which was developed by S&I Systems. There was no direct or written communication from AIM on this issue, the MND Review Team noted.
Under the PAP Town Councils’ contract with AIM, the company could terminate its services by giving three months’ prior notice in writing to the town councils.
However, AIM could also terminate the contract by giving a shorter notice period of one month in the event of material changes to the membership, or to the scope and duties, such as changes to the boundaries, of the town council.
On June 10, 2011, AHTC wrote to AIM to inform the company that it was developing a system to support its operations, and that the system was targeted to be operational on Aug 1, 2011. AHTC requested to continue to use AIM’s software till the end of August 2011 to ascertain the reliability of AHTC’s new system.
“AIM understood it to mean that AHTC was giving notice of its intention to use its own system and not rely on the TCMS, but sought an extension to enable it more time to install its own system,” said the MND Review Team.
On June 22, AIM served notice of termination for AHTC’s use of the company’s software, till the end of the following month, “but was internally prepared to give any extension if requested”.
On June 24, AIM agreed to AHTC’s request to extend the use of the TCMS to Aug 31. The town council wrote to AIM on Aug 29, 2011 to request to extend the use of the company’s software till Sept 9, 2011, as their auditors would need to review the data in the system.
AIM agreed to AHTC’s request for extension on Aug 31. Ten days later, on Sept 10, 2011, AHTC’s use of the TCMS ceased.
