Public Prosecutor v Fonda Global Engineering: Electricity Act Violation & Contractor Liability

In Public Prosecutor v Fonda Global Engineering Pte Ltd, the High Court of Singapore heard an appeal by the Public Prosecutor against the sentence imposed on Fonda Global Engineering for violating s 85(2) read with s 85(3) of the Electricity Act. Fonda Global Engineering, the main contractor for a Land Transport Authority project, caused damage to high voltage cables through its subcontractor Maha Arul Sithi Construction & Engineering Pte Ltd. The District Judge fined Fonda Global Engineering $60,000. The High Court dismissed the appeal, finding that the fine was not manifestly inadequate.

1. Case Overview

1.1 Court

High Court

1.2 Outcome

Appeal dismissed.

1.3 Case Type

Regulatory

1.4 Judgment Type

Grounds of Decision

1.5 Jurisdiction

Singapore

1.6 Description

Fonda Global Engineering fined for damaging high-voltage cables. The court considered deterrence and contractor liability under the Electricity Act.

1.7 Decision Date

2. Parties and Outcomes

Party NameRoleTypeOutcomeOutcome TypeCounsels
Public ProsecutorAppellantGovernment AgencyAppeal DismissedLostTan Hee Joek
Fonda Global Engineering Pte LtdRespondentCorporationFine of $60,000 UpheldWonTan Beng Swee

3. Judges

Judge NameTitleDelivered Judgment
Choo Han TeckJYes

4. Counsels

Counsel NameOrganization
Tan Hee JoekTan See Swan & Co
Tan Beng SweeCTLC Law Corporation

4. Facts

  1. Fonda Global Engineering was the main contractor for a Land Transport Authority project.
  2. Fonda Global Engineering engaged Maha Arul to carry out earthworks.
  3. Maha Arul damaged a 230kV high voltage cable and a 66kV high voltage auxiliary cable.
  4. The damage occurred because trial holes were not dug to verify the absence of electricity cables.
  5. The District Judge imposed a fine of $60,000 on Fonda Global Engineering.
  6. The cost to repair the cables was $393,706.83, which Fonda Global Engineering paid.
  7. Damage to a central chiller belonging to SIM University amounted to $9,000.

5. Formal Citations

  1. Public Prosecutor v Fonda Global Engineering Pte Ltd, Magistrate's Appeal No 30 of 2012 (EMA 100 of 2011), [2012] SGHC 222

6. Timeline

DateEvent
Hearing adjourned pending decision in Khian Heng Construction (Pte) Ltd v Public Prosecutor.
Appeal dismissed.

7. Legal Issues

  1. Liability under s 85(2) of the Electricity Act
    • Outcome: The court clarified that liability under s 85(2) is imposed only on the party who directly damaged the high voltage electricity cable, unless an agency relationship exists.
    • Category: Substantive
    • Sub-Issues:
      • Agency relationship
      • Direct damage to high voltage cables
  2. Appropriateness of Sentence
    • Outcome: The court held that the fine was not manifestly inadequate and dismissed the appeal.
    • Category: Procedural
    • Sub-Issues:
      • Deterrence
      • Manifest inadequacy of fine

8. Remedies Sought

  1. Increased fine

9. Cause of Actions

  • Violation of s 85(2) read with s 85(3) of the Electricity Act

10. Practice Areas

  • Regulatory Law
  • Criminal Appeals

11. Industries

  • Construction
  • Utilities

12. Cited Cases

Case NameCourtAffirmedCitationJurisdictionSignificance
Khian Heng Construction (Pte) Ltd v Public ProsecutorHigh CourtYes[2012] SGHC 141SingaporeCited to clarify that s 85(2) of the Electricity Act imposes liability only on the party who directly damaged the high voltage electricity cable, unless an agency relationship exists.
JS Metal Pte Ltd v Public ProsecutorHigh CourtYes[2011] 4 SLR 671SingaporeCited to explain that while the prescribed maximum fine under s 32A(2) of the Gas Act has an element of deterrent punishment, it does not follow that every offence under that provision must be punished with a deterrent sentence.

13. Applicable Rules

Rule Name
No applicable rules

14. Applicable Statutes

Statute NameJurisdiction
Electricity Act (Cap 89A, 2002 Rev Ed)Singapore

15. Key Terms and Keywords

15.1 Key Terms

  • Electricity Act
  • High voltage cable
  • Deterrence
  • Agency
  • Sub-contractor
  • Damage to cables
  • Main contractor
  • Earthworks

15.2 Keywords

  • Electricity Act
  • high voltage cable
  • contractor liability
  • Fonda Global Engineering
  • Public Prosecutor
  • Singapore
  • regulatory offence

16. Subjects

  • Electricity
  • Public Utilities
  • Construction

17. Areas of Law

  • Electricity Law
  • Regulatory Offences
  • Criminal Law