A 59-year-old managing director who overcharged Tampines Town Council by falsifying invoices for water pumps has been sentenced to three weeks’ jail. Zhang Shuyan, who ran FYH Integrated with his wife, pleaded guilty in April to one count of falsifying accounts, and was sentenced on May 13.
The case involved a significant misuse of public funds. From April 2016 to July 2017, FYH was under a contract with Tampines Town Council to service and replace water pumps in Housing Board (HDB) estates. According to the contract, a schedule of rates specified the prices for various pump types, including the less expensive single-stage pumps and the pricier multi-stage versions.
Over the course of the year, Zhang’s firm replaced 267 single-stage water pumps in Tampines but falsely billed the town council for multi-stage pumps, which cost more than $1,400 each. Single-stage pumps cost only about $550. FYH submitted 203 inflated invoices, leading the town council to pay more than $380,000—an overpayment of more than $233,000.
Zhang’s actions only came to light in 2017 when the managing agent for the town council discovered the discrepancy. They noted that FYH had consistently billed for multi-stage pumps despite using single-stage ones. Upon being confronted, Zhang admitted to the misrepresentation and agreed to refund the extra money his firm had collected. He later made full restitution, with the majority of the amount returned even before formal charges were filed.
Deputy public prosecutors David Koh and Yeow Xuan explained in court that FYH Integrated was established in 2009 with a paid-up capital of $500,000. The contract with Tampines Town Council was signed in February 2016 for a three-year period and included responsibilities like pump maintenance, repairs, and replacements in HDB blocks. The false billing occurred throughout this period, indicating a sustained and deliberate offence.
District Judge Kenneth Chin, before sentencing Zhang, acknowledged the full repayment but stressed that the misuse of public funds and the prolonged nature of the offence warranted a jail term. “The offence involved public money and was committed over an extended period,” the judge stated.
Despite the maximum penalty for falsifying accounts being up to 10 years’ imprisonment and a fine, Zhang was given a three-week custodial sentence due to mitigating factors, including the early plea, full restitution, and lack of prior criminal history.
The case serves as a cautionary tale for contractors handling government or public sector contracts. Town councils, funded by residents and public funds, rely on accurate billing and ethical conduct from their vendors. The swift detection by the managing agent and the eventual refund prevented further loss but highlighted vulnerabilities in oversight.
As of now, Zhang has been held accountable for his actions. Authorities continue to emphasise the seriousness of financial integrity in dealings with public institutions and the harsh consequences for those who attempt to exploit the system.
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